Running low on money is not uncommon among startups and small businesses. Watching your business account shrink can cause panic. Without money, you cannot pay vendors, salaries, and bills. Cashflow problems do not mean a company is doing poorly. This problem can be solved if you find them early enough. Whatever reason for financial hardship, here are some options that can help your situation.
Reduce your salary
Don’t worry, this is a proposed short-term fix and will help keep money in your business bank account.
Raise your prices
A little research of your competition and evaluation of profits through your current price model may give you a valid reason to raise prices or rates. Keep in mind, your loyal customers should be given fair warning to maintain a good client relationship and prevent losing customers.
Cut Costs
Cutting costs can help keep your head above water. Think about subleasing unused space or sell any unused equipment. Although it is the last thing you may want to do, shrinking your staff may be necessary to keep the doors open. Organizing your office will help in cutting unnecessary costs too.
Alter your payment window
By shortening the payment schedule your customers have, you will keep more money in your business bank account. Most businesses allow 90 days for payment, shortening this to 30 can streamline some income.
No customer is too small
Remember, customers of all sizes bring in income. Multiple income streams from large or small clients can help when you find it is necessary to make more money.
Build a cash reserve
Saving money can help avoid a cash flow problem by creating a safety net. This can buy you some time when you realize funds are low.
As stressful as it can be when you realize you are low on funds, it doesn’t mean there isn’t a light at the end of the tunnel. Contact American Finasco. We provide strategies and take the pressure off business owners who are having a hard time managing their debt. The first step when dealing with commercial debt is a phone call to American Finasco. We provide effective solutions for business debt relief. Get your business on the right track! Visit Contact Us and complete our Online Form for a free consultation or call (800) 299-2909. We look forward to speaking with you.