Do you know what the most important thing is for your company? It’s not making money, it’s protecting it. You can’t make more money if you don’t have any, to begin with! We all know that cash flow is the lifeblood of a business, and without enough of it, your business will perish. There are many strategies for generating revenue streams and protecting cash flow during tough financial times. In this blog post, we’ll go over some of these strategies so that you can better advance your company’s financial well-being!
Work with a business lender.
In these times, it is important to have the right financial partner by your side. When you take out a loan from a bank or other lending institution they will expect interest payments on top of the principal amount owed overtime. The longer that repayment takes, and the smaller those monthly installments are, the more your company can focus on its core business and generating revenue.
Pay off high-interest debt first.
If you have any credit card debt, student loan debt, or other types of loans that charge very high-interest rates to customers then these should be paid down before the principal amount owed is even considered for a bank loan or line of credit.
Reduce revenue leakage.
Part of the reason many companies find themselves in financial distress is due to insufficient, or even nonexistent processes for reducing overhead costs and increasing profit margins on sales. This can be caused by overspending, not using discounts wisely (or at all), missing out on potential customer insights that could help increase conversion rates (i.e., how many customers sign up compared to those who leave their contact information but never buy anything?), etc.
Reach out to your supplier network first before approaching a bank lender about financing options for your company’s growth strategy initiatives.
If you are looking into ways of streamlining operations then one option may be outsourcing certain tasks like bookkeeping or administrative work instead of handling it all in-house. This will free up valuable company resources to focus on revenue-generating activities that can get you out of a cash flow crunch situation, or help prepare for future growth opportunities. In the end, your business is only as good as its financial health and well-being. Make sure you protect it at all costs!
Having the right financial partner by your side can make all of the difference. Approach a business lender to discuss financing options for growth strategy initiatives, and be sure to check with your supplier network first before approaching them about it so that you don’t overspend on things like packaging or other materials. Cut costs where you can, whether it’s outsourcing certain tasks instead of handling everything in-house yourself, using discounts wisely (or at all), reaching out to customer insights that could help increase conversion rates, etc. Business is only as good as its financial health! Make sure yours stays strong during tough times!