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Hints and Tips | Five Tips to Ease a Cash Crunch


Home | Hints and Tips | Five Tips to Ease a Cash Crunch

Five Tips to Ease a Cash Crunch
  1. Sell off inventory and assets – Many businesses have inventory that’s just taking up space. Walk through your office or warehouse to see what’s collecting dust and bump it for a one-time cash infusion, even at a loss. A sunk cost is a sunk cost. Hanging on to it compounds the error.

    Generate more immediate cash by selling off unused equipment and machinery. Use Internet selling sites or an equipment auctioneer. This may also create surplus floor space you can rent out.
  2. Work with your suppliers – Be upfront about your situation. Can you get extra time to pay your bills? Could you offer partial "good faith" payments? Most suppliers would rather get paid down the line than not at all if your business fails.
  3. Reduce employee hours – You can temporarily cut employee hours if business slows. It increases your odds of keeping everyone on staff instead of losing valuable personnel.
  4. Renegotiate your lease – Ask your landlord to reduce your rent temporarily and let you make up the difference later on. Here again, many landlords would prefer to keep you as a tenant rather than run the risk of having an empty space.
  5. Factoring – Consider selling your accounts receivable to a factoring firm. Such a firm takes your accounts receivable in exchange for immediate cash. Fees can be high – 18 to 22% annualized – so this shouldn’t be a long-term solution. But the cash might be available right away to cover shortfall.



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"I would like to thank you for picking Ben's Clothing for the retail consulting makeover.  I very much enjoyed talking to Barbara.  She has wonderful insites on what to do to refresh my store.  I was extremly excited of the ideas put together thats in my budget for now and also in the near future.
 
The 1st part of the seminar, had opened my eyes to the reality of my challenges and concerns, statistics, operating cost and marketing which is a huge part that can not be ignored. It's a must to have a list of issues to know it and control it.  This is a large part of my battles that I face but placed them in the back burner. 
 
When Barbara came into my store I wasn't sure what to expect because in the seminar she was leaning towards makeovers for a new store or toronto style store.  I had no idea that a little bit of paint in a different color will bring out what I want to promote.  She had alot of new ideas that are in the budget and I'm going to make it happen!
 
Thank you again for filling me in with the seminars that are offered.  I'm always willing to get informed and always moving forward."

- Hazel McLean


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