As a business owner and finance leader, what are you doing to make sure your company survives the impact of COVID19?
Cash flow has never been more important to your business than now –
This is a message we are constantly sharing with our clients and I put together a short video with 7 Cash Plays you can implement in your business or even suggest to your employer/leadership team and solidify your position on the team.
1. Take a draw on your Line of Credit
2. Negotiate Rent terms if you're renting a space from your landlord - try offering to extend your lease further if they defer payments
3. If your business can handle it - offer Early payment discounts to incentivize early payment from your customers on money owed.
4. Request extension on outstanding payables to your suppliers - your suppliers may be in a better cash position than you are so it doesn't hurt to ask for extended terms. If you have a great relationship with them and have been a good payer - there's a good chance you they'll consider it.
5. Explore drop shipping directly to the customer to save you inventory and storage cost
6. Explore the option of a Low Cost Business Loan - Now is not the time to put charges on your credit cards - the interest rates are astronomical - if you're hurting for cash, we recommend pursuing a lower interest loan you can pay back overtime
7. Consider doing a pre-order service - If you sell products this means make to order. If you're a restaurant this may mean making orders on demand vs. bulk prep.
If you’re not already thinking about these things my advice is to consider and implement them ASAP.
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Whether you are considering starting a business, run a business, or work in a business, this is a great resource for you. Follow the hashtag #businesstalklibrary on LinkedIn highlights of tips, discussions and interviews with various business owners, and visit our YouTube page for the full-length videos.
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