Running a business is not always easy. You might encounter problems, such as slow sales, or other issues that put a dent into the cash flow of your business. Any business, no matter how big or small, should always be prepared for rainy days and they should have a backup plan of some sort. Usually, small businesses are the ones that suffer the most when it comes to hard times.

For startups and other small businesses, such as one-person businesses, hard times usually hit the hardest. Even the smallest dip in sales can cause them to have problems overall. Fortunately, there are things any small (or big) business can do to keep themselves afloat over hard times.

Seeking government grants can be a great start
In many countries, governments give out grants and other financial aid for small businesses in different stages of their journey. For instance, they might offer startup grants in the beginning: you might get financial support from the government that helps you get started. Some business owners decide to use this grant to cover startup costs, such as renting a space or buying equipment. On the other hand, some businesses decide to put it in their account for extra cushion.

Governments can even offer grants, loans, and stipends for small businesses when they are having a hard time. These grants are usually something that are given out during a crisis, such as the COVID-19 crisis in 2020. Loans, on the other hand, can be given out any time, depending on the financial situation and history of the business.

Banks can help in form of loans and credit cards
More often than not, even small businesses need to apply for a loan or a credit card eventually. Maybe it is to cover the startup costs, new inventory, expansion, or cash flow problems. Applying for a loan online or at your local bank can be an easy and fast way to cover some dips in the sales during hard times.

However, applying for a loan should never be done light-heartedly. After all, all loans have to be paid back, and usually on a monthly basis. So, should your business encounter rough times, you can contact your local bank to discuss potential options.

- It is always better if a business can come up with another way to cover costs aside from taking a loan. After all, a loan can quickly become a liability, says Reza Shojaei, the owner of Value Marketing.

Value Marketing is a multimillion dollar company that handles iGaming brands, and they cover, for instance, online casino India markets.

- Considering getting a credit card might even be a better idea, as paying it back is often more flexible and interest rates can be lower, Shojaei adds.

Many banks give credit cards to small businesses and you might get a fairly high limit, too. Credit cards can be used as a “just in case” security in your pocket, or they can be a big help when paying for bigger inventory, for instance. However, keep in mind that sometimes, credit cards can have a high interest rate.

Crowdfunding can help certain businesses
If bad comes to worse, crowdfunding is something worth considering. In short, creating a crowdfunding campaign using a third-party platform can give you a possibility to ask for help from your community. In fact, some crowdfunding campaigns have been tremendously successful. In the past, some businesses have been able to collect tens of thousands and even hundreds of thousands of dollars just by creating a successful crowdfunding campaign.

The best thing about a crowdfunding campaign is that your business can keep all the money it gets: you will not need to pay it back, like you would have to do in a loan. Also, a campaign like this can create more awareness about your business and get it in front of new customers and leads.

What can you do in preparation?
At the end of the day, in the best case scenario, you will already have prepared for possible hard times. This means that your business should already have some savings and assets that can be liquidated if needed. Ideally, each business should have about 3-6 months worth of expenses in cash in their bank account, so in case of a bad situation, you will not be in trouble.

Getting a loan or a credit card in advance might even be worth consideration. This way, you are prepared and small dips in sales will not be a cause of worry.

In conclusion, ensuring that you have a good backup plan for harder times and slower sales periods is vital for the success of your business. It is better to be prepared rather than have to react to a bad situation later on.