Entrepreneurs like to think that their businesses are prepared for every situation. But sometimes things can go wrong: very wrong. A major customer can be late on a payment, for instance. Or your company might be sued by an irate customer. Or a key employee could get sick and cause key projects fall behind. In these situations, you may very well face a cash flow emergency.
But here’s the thing: your company is still viable. And so it would be a shame is a short term problem derailed the entire project. After all, if things had gone to plan, you’d be profitable right now. Here’s some advice to fix a cash flow emergency.
An excellent way to overcome a short term cash flow the problem is to boost your sales. Right now, the last thing you want to concern yourself with is probably new customers. You want to get on with fixing the problem that’s causing your financial difficulties in the first place. But it’s new customers who will bring in the money to paper over your temporary cash flow problems.
You might also think that now is not the time to take on new staff. After all, if a key person is off, you might not have the capacity to serve them. This is the wrong attitude to take. The risks of not taking on new customers are actually greater. What’s worse? A few disappointed customers or a business that goes bust?
Right now there are plenty of companies who specialize in dealing with cash flow problems. They recognize that not all businesses that are in the red are necessarily going out of business. They understand that many companies go through hard times, especially when payments are late. It’s never been easier than it is today for a small business to get a cash advance online. Usually, payments are made within 24 hours, allowing you to carry on operating your business.
When businesses get into financial trouble, the first people to notice are their suppliers. But remember, when it comes to your suppliers, you are a customer too. No doubt, you’ve been a good customer of theirs for some considerable time. And so they may be willing to grant you an extension on your payments, so long as you explain your situation. After all, they don’t want to end up losing your business in the long term.
Lastly, you might consider selling some of your assets if you know that your cash flow problems are temporary. Many small businesses have investments that they can liquidate. And they also have assets in-house that they can sell to make ends meet. Obviously, this isn’t an ideal way to deal with the problem of negative cash flow. But it is a viable option if no others are available.
When it comes to cash flow, what matters is the continuity of the business. If there’s no fundamental reason why the business should fail, everything must be done to make it succeed.