How to Pull your Small Business Out of a Cash Crunch?

From
a very early stage in life we are taught that failure means the end but
reflecting back at history, it can be appropriately said that failure is just a
stepping stone for success. Sometimes before a business finally leaps for the
positive slope on the progress-time graph it takes a steep negative slope. Most
successful businesses today are the ones that pulled their enterprises out of
there instead of giving up. We have compiled a few suggestions for you, that
might give you an insight in pulling your business out of a cash crunch.

Frequent SWOT Analysis

SWOT stands for Strength, Weaknesses, Opportunities and
Threats. A good quality SWOT analysis will help you monitor the progress of
your enterprise and predict its rise and fall. Such predictions might come
handy in preparing beforehand for the losses and might save you from the panic
attacks.

Value your customers

According to Gartner statistics, eighty percent of a
company’s revenue comes from twenty percent of its customers. Know those twenty
percent customers and keep them close. Try involving them in your business
strategies and maintain your goodwill with them.

Invest in an Advisor or Mentor

One thing you can always learn from
is the experiences of people who took similar paths as you have chosen. A good
advisor would be a great asset not just in times of profits but more so in
times of loss.

Consolidate Debt

Try to combine your debts into a low fee and low interest
product. Try finding better deals while you are refinancing your current debt
arrangements. It could save you some trouble if multiple debts having varying
interest rates could be combined in order to have a relatively lower interest
rate.

Rely on Government Grants

When opening up a small business or enterprise, look out for
insurance policies and schemes that are meant to assist small-scale enterprises
and young entrepreneurs. Backup is great when considered from the very start.

Recover Outstanding Debt

While borrowing or lending money, always make sure you have a condition of sale agreement in writing that outlines your terms and conditions, very clearly. In times of occurring losses, chase up as many outstanding payments as you can. You can ever outsource your debt collection with a reputable debt collection agency.

Sell  Assets

If you have some unwanted assets, which do not add up in your
profit equation, you could sell them and reduce your storage costs. To help you
spread the cost over a longer time period, you could also consider leasing your
assets, until you fully recover from the losses.

New Marketing Techniques

Times of traditional business settings are long gone. In this
era of social media and globalization, you might just be a few clicks away from
recovering your losses and elevate your enterprise. Make right and extensive
use of the World Wide Web and try to reach potential customers throughout the
globe. You can even offer additional payment methods online, which will open
for you different markets.

Good
businesses thrive on risks. But it is highly inadvisable to take those risks
without precautions. Moreover, it is important to not give up without trying
recovering your enterprise from a negative slope. Personal assets, help from
friends and family should be one’s first preference once all the precautions
are utilized exhaustively. It might take a whole of of perseverance and
patience but running your own enterprise despite all the losses that one might
face, is one of the most satisfying jobs.

The post How to Pull your Small Business Out of a Cash Crunch? appeared first on Entrepreneurship Life.