With the current housing crisis, credit crunch, and a full-fledged recession, your business may be feeling the burn. What can you do to help ease the pressure in this economy? Here are our tips to help you ease the strain on your business.
1. Move Balances to Zero Percent APR Credit Cards
This tip may seem simple and obvious. Yet so many business owners fail to remember that moving your credit card balances to a zero percent APR credit card can save you hundreds or even thousands in interest.
2. Collect Outstanding Bills
If you haven't done so already, calculate your outstanding receivables. Then determine your approach to collecting. You should already be sending out regular reminders for outstanding bills, but you also need to create a Plan B in the event your accounts do not pay. Whether you offer them terms or send them to a collections agency, it is key to remember that collecting on your receivables it essential to keeping your business afloat. Check out LegalZoom's downloadable invoices and collection letters to help you collect what you're owed.
3. Ask for Payment Terms
You may have already established terms of payment with your vendors. But if you haven't, now is the perfect time. Creating a system of payment terms can help give you more time to pay, which can make a big difference in tough economic times.
4. Create a Budget
This seems like another obvious tip. Yet so many business owners don't keep a budget. All small business owners need to know what they can and cannot spend in order to keep their employees and themselves paid while keeping enough money in the bank for cash flow.
5. Cut Entertainment Expenses
Although your business may require significant entertaining and networking, there are ways to keep your clients happy without breaking the bank. One way is to do lunch instead of dinner meetings. Restaurant lunch specials mean you can treat your clients without the high price tag of the dinner menu. You might also want to consider suggesting drinks instead of dinner. An entire meal with drinks, appetizers, a main course, and dessert can get hefty. But drinks meetings can be scheduled before dinner so they can be fairly short and less expensive than an entire dinner.
Armed with these tips, you can be confident that your business will weather the economic storm.