Just as your body needs rest and food for fuel, your business needs working capital to keep it up and running. Working capital is the fuel that lights your business’s fire and keeps it going day in and day out.
Entrepreneurs that experience cash flow problems know all too well the friction and headaches it can cause. Without working capital productivity and progress are forced to come to a screeching halt. Luckily, with some tips that you can implement today, you can improve your business’s cash flow situation. Read on to discover three ways to ease a cash flow crisis.
#1. Marketing Dollars Must Make Cents
Despite what you may have been told, every new season does not require a new marketing campaign. While tweaks should be made to reflect the current happenings on the general public (i.e. 4th of July, back to school, holiday season) continuing to pour marketing dollars into an ever changing environment does not make sense.
Instead use your marketing budget to create a solid (yet flexible) campaign that you can easily alter. A tagline and motto that matches your mission statement can easily be customized to match the current culture.
Keep the relevant information up to date (like contact info) and explore free marketing outreach outlets like Twitter and blogs that can get your word out without costing you upfront capital. In many cases you will not need to hire a social media manager. You can instead just focus on one thing, producing great content. Consider hiring an intern who can post/edit content, make videos and add pictures to your account. Hands on experience for free labor provides a win-win exchange.
#2. Check In with the Joneses
Take a minute to review your house costs, prices and profits. Perhaps it is time to update your price list. Check in with your local competitors and see what rates they are applying to products and service that are similar to yours. A common pitfall of the small business owner is to undervalue his/her work, make sure your rates are fair but at the same time, competitive.
Additionally, you could increase your working capital by promoting discount offers and sales. Cash flow can get a boost with an influx of bargain shoppers. The key is to get the word out about your momentary price drops. Consider offering your discounted services on sites like Groupon or bring online discount codes to your next networking event. People love a good deal almost as much as your working capital will enjoy the boost.
#3. Buy For Quality and In Bulk
Sometimes in order to save you have to spend. Inexpensive, used equipment may have saved you some funds upfront, but constant repairs and pauses due to “issues” can be costing you much more in the long run.
Stop pouring money into faulty equipment that is killing your productivity (and profits). Buy quality now and never look back.
While some entrepreneurs may be shaking their heads thinking, easier said then done, there are ways you can afford quality equipment, inventory and supplies the first time. A merchant cash advance can allow your business to get a jumpstart on the investments it needs to make now. With payback systems that work with the flow of your business, your business stands to gain both now and later.
What other ways can you improve your business’s cash flow?
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