A cash crunch is not a good feeling, but it’s one that many small business owners experience as they seek to grow their businesses into thriving enterprises.
Curing cash crunches over the long run may be a matter of getting used to and adapting to how money ebbs and flows within your particular business.Of course, it’s always a good idea to make better long-range plans to weather those times when the till is nearing empty.
Fortunately there are also ways to make it through a money squeeze that doesn’t involve turning over sofa cushions to scavenge for small change or turning in your penny jar at the bank.
One idea is to have a special sale or promotion. Look at ways to highlight a special deal on your product or services. Be sure to call or email your customers to let them know about it. Encourage clients to take you up on your promotion by including a deadline that will make them want to act swiftly to take advantage of it.
Consider whether the time has come to raise your prices. Don’t do it on the down low. Make sure you tell your clients and customers in advance of the price hike and let them know the date it will take place. Give them the opportunity to purchase your products and services in advance of the price increase and they will feel good about being able to save some cash. They also may take the opportunity to stock up on what they need.
Another good idea, particularly for those selling a service, is to move from selling your service on a piecemeal basis to selling your services as a package. Clients might leap at the chance to purchase a multi-session package particularly if they are saving a little dough by making a multi-session commitment to your business.
Sell or lease equipment or other assets that you don’t use. If you’ve not scrutinized your office, storage units or inventory for items that are collecting dust or going to waste, now is the time to do it. Put those items up for sale and you may reap monetary rewards and relieve yourself of the burden of storing unused items.
Unfortunately, all business owners also need to keep a close eye on the inventory and checkbook. Employee theft, embezzlement and fraud are big problems for small businesses, according to the Small Business Administration which has estimated that up to 30 percent of small business failures can be attributed to these issues.
Here are more tips on surviving a cash crunch.