Preventing Layoffs: EIN Cap Helps Protect Your Finances And Protect Your Employees
There are many character traits that can used to describe entrepreneurs: fearless, driven, inspired, etc. But one character trait that many entrepreneurs must possess at their very core is passion. Success is not something that merely comes to those who lie dormant, waiting to “catch a break” because they happen to be in the right place at the right time.
Success demands sacrifice. The sacrifice of beloved free time, the sacrifice of finances without any promise of reimbursement from a profitable venture, and the sacrifice of comfort. Without passion, entrepreneurs would not be able to amend for these sacrifices. For those brave enough to let passion serve as a guiding force towards a more prosperous financial future, there is a challenging, uncertain road ahead until your venture can become a thriving entity that can exist more independently of you.
Yet, sadly, more than 80% of first year businesses will not make it into their second year. 8 out of every 10 business owners who attempt to build their own companies from the ground up will never see their ideas grow into tangible businesses. There are many reasons that contribute to a business’ failure, but one of the most prominent reasons for deficit is a lack of capital.
The dangers involved with starting a new business do not disappear after the first year, paving a path for a low-risk second or third year. Even more seasoned businesses face their own set of similar challenges, which become even more severe due to the fact that they face more to lose.
No business begins with the mindset that there is an expiration date looming in the distance. What every business strives to pursue is growth both inwardly and outwardly, hiring more employees as more clients are acquired. However, there are other factors that affect even more mature companies. One of the major threats that companies will continue to face over the years is the risk of layoffs.
Last year, the United States experienced around 1.6 million layoffs in December alone, which was very close to the previous month’s number. This pattern highlights how common this statistic is as of late. A consequence of consistent layoffs is that unemployment rates also continue to progressively fluctuate, mostly in an upwards trajectory. At the beginning of 2017, unemployment rates have actually risen to 4.8%, which was an increase since December 2016.
A small business cannot predict when layoffs will occur. By the time the idea of laying employees off comes to fruition, it is often too late. Business owners should be better equipped with how to prevent layoffs. If profits can be protected, so can employees.
Be selective during the hiring process.
The hiring process for any company can be rather rigorous and time-consuming. It is better to immerse yourself in this process rather than deal with the consequences of hiring the wrong candidates for your company. Even having just one or two incompetent employees walk through your door can have a major influence on the performance of your business. Bringing in qualified individuals with an ingrained work ethic that exceeds expectations is how you are truly going to grow your brand. Success starts from within!
Don’t be too prideful to seek out business funding.
One purpose of laying employees off is to make up for a lack of profits. Being a small business owner, especially in an unpredictable economy, is challenging. Once you admit this to yourself, you can accept that there will be times when you need to look beyond yourself for help. Did your business experience a rough couple of months financially and you need to make up for a loss of revenue? Or is there a necessary project that needs completed but pulling funds from your own account could be detrimental to your business?
Seek capital that will alleviate your financial burden so that you not only stay on track with your finances, but so that you can continue to flourish. At EIN Cap, we offer business financing options, such as small business loans and merchant cash advances, that were designed for your specific needs. Because EIN Cap is dedicated to your success, we believe you shouldn’t have to wait for the money you need, you will receive the funding in one business day after being approved.
Eliminate expenses that don’t serve your company’s growth.
If your employees can have peace of mind knowing their positions are secure, they are going to be more accepting of other sacrifices that need to be made within the workplace. If, for example, you provide coffee or snacks at no cost to your employees, it may be beneficial to your business to eliminate these extra costs. If these savings are enough to guarantee that all of your employees can keep their jobs, they will be willing to pay for these amenities out-of-pocket.
Even businesses that approach every detail of their operations with precaution are still not immune to layoffs. While they are often inevitable for a variety of reasons — whether out of your control or not — these preventative measures will hopefully be a useful resource for ensuring the most success for your business.
If you would like to inquire more about the financial services that EIN Cap offers businesses, contact us here. A partnership with EIN Cap could be the difference between a prosperous small business and one that goes out of business.