Quick fact: studies show that roughly one in four failed startups can be attributed to cash flow problems.
With the above statement in mind, facing problems of this ilk can be very daunting for any business owner. However, those issues needn’t signal the end of your venture.
Try these five potential solutions for size, and those troubles could soon be a thing of the past.
- Encourage a quick boost of revenue. This can be achieved in many ways, with hosting a promotional event being the most popular. An alternative option is to run a special online offer, putting a time limit on it to encourage the right response. Either way, those short-term sales boosts can solve the cash flow crisis. Better still, the increased sense of value is likely to bring increased positivity for the long haul too. This surely has to be the best possible starting point.
- Obtain access to additional funds, which can be invested in business growth and clearing any debts. Experts at Unsecured Capital help many ventures like yours boost their bank balances even when some options aren’t available. Borrowed money naturally has to be repaid, but this is the fastest way to get out of a hole or accelerate your progress. In fact, with this option, you could have those issues solved before the end of the week.
- Start taking control of your expenses. Simple accounting and budgeting skills will enable you to stay on top of those ongoing issues. Meanwhile, it should help you spot areas for improvement. This list could range from staffing to energy bill, but each item will have a positive impact. In truth, it may take a few weeks for the results to truly become clear. In the grand scheme of thing, though, it should remove the strain from the current cash flow crisis. Better still, it should prevent future ones too.
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Source Upgrade your approach to payments. If you invoice clients, be sure to send them promptly as you cannot get paid until after they’ve been received. Meanwhile, replacing checks with credit card payments can work wonders too. With the help of experts at eWAY, you can take those payments via your website too. This means more sales, quicker sales, and fewer cashflow problems. This is no magic spell, and you’ll still need to generate sales. Still, the increased speed can only be good news.
- Protect yourself against bad debts and unfulfilled payments. Running credit checks on clients before accepting their loan agreements can save you a lot of hassle. Meanwhile, trade insurance is a great way to provide even greater protection for the company. Sadly, losing out on revenue that has already been counted for in your projections can cause major ongoing problems for the company. If those precautionary measures can keep cash flowing in a steady manner, it has to be worthwhile.
The financial barometer isn’t the only key factor for a successful business, but it does play a central role. Master this aspect of the operation, and your hopes of sustainability will look bigger and better than ever.
