Surviving Low Cash Flow – 3 tips and tricks to keep your business afloat until better times arrive. 

In December 28, 2017
On News

The holiday season is here, and the official start of Winter is right around the corner. For winter-oriented businesses such as ski resorts and coat/jacket manufacturers, these months probably represent peak season — a time with lots of sales, success, and cash flow.

At the same time, summer-oriented businesses such as ice cream shops and water-gear rental facilities are likely dealing with the down season. Relatively few sales are occurring, and cash flow is suffering as a result.

Low Cash Flow Is Dangerous
Of course, we all know that in a few months, the tables will turn. Summer-oriented businesses will thrive while winter-oriented businesses struggle. For this reason, unexpected fluctuations in cash flow are oftentimes the most harmful, as they cannot be carefully planned for in the same way as seasonal highs and lows.

Whether your business is seasonally-oriented or not, there is one fact you should always keep in mind: as reported by Time magazine, cash flow problems will eventually lead to the closure of one in every four small businesses in the country.

Solving Cash Flow Problems Quickly
Broadly speaking, there are three ways of overcoming cash flow issues:

1. Get Credit — though this is only a temporary band-aid, it may be the best solution if you are truly convinced that your problems are only temporary. If banks are not keen on lending to a company suffering from the issues you are currently experiencing, then a loan from a small business organization, an investor, a family member, a friend, or even your own personal bank account may suffice.

2. Cut Costs — for most small organizations, this is the only viable option for eliminating cash flow problems quickly. Downsizing payroll, reducing administrative costs, and even switching to a part-time schedule are all smart strategies.

3. Increase Income — From a liquidation sale to a price increase to an aggressive online marketing campaign — if you can identify a viable strategy for boosting company income in a hurry, then you should probably consider it, regardless of the long-term cost.

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