Six Thing to do When Cash is Tight

Times are tough for lots of businesses right now and this puts pressure on cash (as well as those running the businesses), so here are six things you can look to do when cash is tight:

Are your costs as tidy as they could be?

Is there any areas of non-essential spending that you can cut back on? Do you need to consider reducing staff hours or even the number of staff? And are there any contracts you can renegotiate terms on?

Is raising capital an option for your business?

This could be in the form of short term loans (ie Shopify Capital, PayPal capital etc) or longer term finance for the business or even crowdfunding and investment (these two are longer term as they take time to raise the funds) - remember that if you borrow you need to have a plan of how you will pay it back.

Is there any possibility of increasing your income?

A special offer? A new service? A subscription? I appreciate that these can be hard to sell when customers are watching their cash.

Prioritise Payments

Keep on top of your tax bills and paying your team and ensure you are taking the full credit terms offered to you by suppliers (i.e. if they offer 30 days and you normally pay within a week, then take the 30 days as you are still in line with their terms).

Keep Communicating

Be transparent and honest with your team and see if they have suggestions to help and talk to your suppliers to see if you can renegotiate payment terms, they may be able to work with you to help in the short term.

Get Professional Help

Speak to your accountant, your bookkeeper etc - we are there to help you understand your numbers and support you through the tricky times too.

Rachael