Simply phrased, there is no worse nightmare than business cash/capital flow problems. When faced with such fates most folks tend to sell off their business in avoidance of getting to the point of bankruptcy. This does not have to be the case. Depending on how you address the issues you can do much more than just save your business you could make it thrive not just survive. In this column will dig into ways you can save your business from financial ruin as well ways of preventing the same.
Cut down on costs
Every business wants to cut down on costs and save money, right? People will theorize this concept and make it sound profound but without giving you ways to actually put it into practice. I hope to help you make sense of this concept in a practical way. One of the easiest ways to cut down on costs is making use of online deals. By this, I don’t mean the deceiving advertisements that talk a big game and end up selling you subpar products. Go to reputable websites that offer discounted rates from a number of stores inclusive of Amazon and Walmart. One such site is promo code watch. You will get quality products –in bulk if you so wish- at a bargain basement price.
Another way you can implement this is by doing away with unnecessary expenses.I bet you’re thinking I’m about to hit you with another theoretical impractical practice right? You couldn’t be more wrong.
Does your business really need those reams upon reams of paper? In this technological era, it wouldn’t hurt to go paperless. You’ll save on buying cartridges ink and of course paper. Wouldn’t it be cheaper if you outsourced the low-level tasks to freelancers on Up work who can work for as low as $5? The time used by your staff to work on such tasks can be put to better use. Then there are the traveling costs when you could simply videoconference. If the job really demands it, let your client bear half the cost.
Capitalize on money-generating resources
It’s sad that you could be facing bankruptcy yet your business has a lot of untapped resources just lying around. Have you ever thought of leaving that extra space rather than making it a breeding ground for rats and cockroaches?
How much do you pay for the internet every month? I bet it’s a pretty good number. Why not make the most of it by tapping into e-commerce. You could do this by availing your product online to reach the millennials who are forever on the net. It wouldn’t hurt to promote your company on social media seeing as it’s free. Have a blog and update it consistently and fill it with SEO optimized content.
Practice proper payables management
Any business savvy lady will have you know those slowing payables and speeding up collections is cash flow management 101. Some experts have gone as far as recommending you assess payables in a “must pay/important to pay/ flexible to pay” point of view. Be proactive and negotiate extended payment terms and put it in writing. This will accord you flexibility in crucial cash outflows. However, do not go to the point of ruining relationships with key vendors.