Everything seems to be running smoothly. You’re busy, which means you must be making money. A fabulous opportunity lands in your lap and you just need a bit of cash to make it happen. That’s when you suddenly realize, you don’t have any. Sometimes it’s just bad timing. Whatever the reason, you have no money in the bank and it’s frightening. The businesses that die from lack of cash flow, are the ones who don’t see it coming or ignore it when it happens. There are things you can do to get over that hump.
Protection Strategies:
- Setting up a contingency fund and saving a percentage of every dollar you earn, is a great way to protect your business from cash shortages. Borrowing from yourself is easy and interest free. Just make sure you pay it back, so the fund is always there when you need it.
- If you don’t have a fund, consider borrowing, with the understanding that it may be a long shot unless you have assets for collateral or receivables greater than the amount you need to borrow.
- A better option might be to make some really quick sales. To do that without spending money takes effort, but is possible. Here are a few ideas:
- Use social media to announce a deep discount flash sale that starts immediately and ends within 48 hours. Don’t sell at a loss, but keep your profit margin low to generate a greater volume of sales, and some quick cash.
- Use social media or a direct email to clients to announce referral incentives, sharable discount codes, buy one – get one, or similar inducements, again with a short timeline.
- If you belong to a networking group, tell them the problem and offer them the best discount you can. Most people are happy to help a friend, particularly if they get something out of it too.
- Pop-up stores are pretty popular these days, and if you can find a busy location that doesn’t require you to pay for the space up front, you can hold a sale on products, or services to be provided in future.
- Use any excuse you can up with, and all the contacts you have, to encourage immediate sales – your birthday, customer appreciation, etc.
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