This post is sponsored by iCASH, a licensed online Canadian lender.
It’s never a nice feeling to see more money leaving your business’ bank account than going into it. You might be having a slow month with fewer customers, or you’re not able to keep up with the costs of business ownership. Whatever the reason for your financial hardship, it can be worth checking out some options to help improve your situation. Here are some of the most popular ones below.
1. Take a Smaller Wage
Taking a smaller wage can be a short-term fix to keep as much money in your business bank account as possible. If you find yourself personally short of funds as a result, there’s always the option of quick small loans. You can apply for these small loans online, then pay them back with manageable repayment terms. While they are not a long-term solution, they can allow you to manage your personal costs while waiting until it’s feasible to draw more money from your business.
2. Raise Your Rates
If it has been a long time since you visited your pricing structure, now might be the ideal time to do so. Think about the value you provide, what your competition is doing, and how much profit is being made through your current pricing model. However, it’s essential to approach this change with caution. Make sure you give your loyal customers plenty of warning and consider gradual price changes rather than significant ones.
3. Cut Business Costs
After using a budget planner, you may have discovered there are plenty of ways to cut costs in your business. Put these cost-cutting measures into action as soon as possible. Consider options like putting the café-style coffee machine out of action, choosing cheaper stationery, and canceling software subscriptions you no longer require.
4. Change Your Payment Schedule
Personal finance options like payday loans are ideal for when you want to take less out of the business to cover your bills but don’t want to end up with less in your personal bank account. Another way to keep as much money in your business as possible is by shortening the payment window your customers have. Many businesses allow 90 days for invoice payment. However, by shortening that down to 30 days or less, you may be able to enjoy a continuous income stream.
5. Don’t Rely On Big Customers
There is undoubtedly value in leveraging relationships with your current customers. By getting them to spend more, you don’t have to worry about searching for new customers. However, if your entire business relies on a few key customers, you may be playing a risky game. All it takes is for one of them to go elsewhere, and you may find yourself with a fast-emptying bank account.
Nurture those big-business relationships, but don’t be afraid to take on smaller ones as well. Having multiple income streams may help you when you’re in the position of needing to make more money.
As stressful as it can be to realize your business is running out of funds, it doesn’t have to spell the end. Some of these options above may be able to put you back in a desirable financial position.