As a self-employed person, you can quickly find yourself in a financial crisis. The reasons can be different: bad order situation, high costs or unexpected expenses. In such cases, insolvency may occur. But what can you do as a self-employed person to avoid insolvency or to cope with it in the best possible way?? Here are 10 tips from experts that can help.
First, self-employed people should always keep an eye on their expenses. Careful planning and control of costs is the basis for staying financially healthy. The following cost factors in particular should be considered: Advertising, salaries, office expenses, taxes. You should also always have a liquidity plan in order to have sufficient financial resources at all times.
Another important measure is to react to impending payment bottlenecks in good time. As soon as you notice that things are getting difficult financially, you should act quickly and not wait until it is too late. One option, for example, is short-term financing through factoring or crowdfunding.
Furthermore, self-employed people should regularly check their contracts and agreements and adjust them if necessary. Carefully review terms, especially for long-term contracts that involve high costs. The same applies to insurance policies: An adjustment of insurance contracts can be useful in certain cases.
Another tip is to seek professional help early on if insolvency is imminent. Insolvency advisors or specialist insolvency lawyers can help to avoid insolvency or manage it in the best possible way. Contacting potential investors or business partners can also be helpful in some cases.
However, self-employed people should also know when it is time to file for insolvency. Waiting too long can lead to significant damage. If you file for insolvency in good time, you have a better chance of becoming entrepreneurial again later on.
In addition to these concrete measures, it is also important to maintain a positive attitude. Despite insolvency, you should remain optimistic and recognize opportunities in the crisis. A network of contacts can also help you cope with insolvency and get back on track later on.
Overall, there are many ways to avoid impending insolvency as a self-employed person, or to manage it in the best way possible. It is important to plan carefully, respond in good time and get professional help when needed. With these tips, the self-employed can successfully master even difficult phases.
Tips for the self-employed: how to analyze your financial situation properly
If you, as a self-employed person, have run into financial difficulties and fear imminent insolvency, a quick and accurate analysis of your financial situation is essential. Here are 10 tips on how to put your finances to the test: