5 ways to stretch your cash this winter
- 1 5 ways to stretch your cash this winter
5 ways to stretch your cash this winter
Many retailers expect large cash flows during the holiday season. Shoppers take advantage of Black Friday and Cyber Monday deals and continue to scramble to find gifts for their loved ones until the year is over.
Unfortunately, we can’t say the same thing for all B2B companies — or even most of them.
After all, it’s pretty common during the holidays for several team members to be out of the office at the same time. When away from school, employees often schedule family vacations as well. These absences can slow down companies as well as the businesses they work for.
If your employees aren’t in the office, you’re incurring payroll costs that aren’t generating any revenue (they’ve certainly earned time off work, though). pay wage). And at the same time, even when your team members are in the office, their colleagues at other companies may be on vacation, reducing your team’s productivity.
All in all, this means that it can be difficult for B2B companies to generate revenue and maintain steady cash flow during the coldest months of the year.
If you’re not prepared for the winter doldrums and the sales stagnation that can come with it, your cash flow could dry up faster than you can imagine.
The good news is, with the right approach, B2B companies like yours can avoid cash shortages altogether. With that in mind, let’s take a look at five ways you can stretch your cash this winter.
1. Wait until it’s warmer to invest new capital
Your revenue may drop as too many employees go in and out of your office, and your customers may be facing the same challenge, resulting in them taking longer than usual to pay. friend.
If this sounds familiar, it might be wisest to hold off on new capital expenditures until the weather gets a little warmer and revenue streams become more predictable. The last thing you want to do is allocate a substantial amount of cash only to have to scramble to find the money to pay your operating expenses a few weeks later.
Instead of investing new capital over the winter, consider refurbishing any equipment you already have. For example, you may not need a new set of servers; the ones you have can just edit.
If you need to buy new gear right away and really can’t wait until spring, you should probably buy something used. Not only will used equipment do the job, but you can also save a lot of money. In fact, used equipment often costs 25–50 percent less than new equipment.
If neither of those options work for you, equipment rental may make more sense.
While you can get the best real estate deals in the winter, it’s probably a good idea to wait until business returns to normal before completing a major purchase — that’s for sure. will collect a large portion of your cash.
2. Sell off any equipment, furniture or items you no longer need
Suppose a few years ago you bought an expensive printer. It works great, but your business is cloud-only these days and you almost never print anything again — let alone enough to justify leaving behind a giant device Perfectly good vacuuming in your office.
Chances are there’s at least some stuff around your office that you can part with. If it’s not a printer, it’s probably a fax machine you never use or some extra laptop you don’t need.
In addition to generating a little extra cash, selling your old electronics — rather than simply throwing it away — is the right move for environmentally conscious businesses. According to the New York Times, nearly 20% of the world’s e-waste is recycled through appropriate channels.
Let’s say you bought some new desks a few months ago and your old ones have been piling up in the corner of your office for the past few weeks.
Instead of throwing your old furniture away, you can take the time to see if you can sell tables, chairs, and tables that your business no longer needs. And even if you can’t, odds are there are at least a few nonprofits nearby that will gladly welcome a donation. Again, in addition to finding a new home for your furniture, you are also doing something good for the environment.
The bottom line: If there’s equipment, furniture, or other items hanging around your office that you simply won’t use anymore, try and sell it—or at least give it away.
The money you generate (or save from taxes) can very well help you overcome the impending cash flow gap.
Have drawers that look like this? Maybe it’s time to sell the office yard.
3. Seek to renegotiate deals with suppliers and utility companies
The end of one year marks the beginning of another — it’s the right time to shop around to see if you’re getting the best deals on telecom, electricity and office supplies, plus other things or not.
The Internet makes it possible to search for hundreds of suppliers and other suppliers in just a few minutes. Odds are you’ll be able to find a better deal. Even if you can’t, you can at least use the information you discover to convince your current suppliers to reconsider their prices.
According to the National Federation of Independent Businesses, energy costs are the top three costs for 35% of small businesses. However, thanks to energy deregulation, customers in many states can now choose their own electricity supplier – rather than being forced to work with a certain utility company.
As reported by the Washington Post, you can save up to 27% on your electricity bill each month.
Not sure how to effectively negotiate with a supplier? The Harvard Business Review has several strategies that you can apply to get the results you’re looking for.
4. Automate as much as possible
Thanks to advancements in technology, today’s companies can automate more tasks than they ever could.
This begs the question: When was the last time you thought about the business structure and the day-to-day tasks of employees?
Successful businesses still need people to power them. But thanks to automation, today employees can be deployed more strategically.
According to this report, business leaders believe that automation can save employees up to 360 hours per year. Multiply your business as a whole and the savings will add up — especially when you play a key role in other productivity gains. Multiply that over the course of the year — and across your business as a whole — and the savings add up dramatically.
For example, if you’re paying someone to do the front desk and answer the phone all day, you could invest in an automated hostess system and an interactive voice response (IVR) system, together. , which expertly replaces digitizers, thus automating your responses to routine calls.
Automation also doesn’t have to come at the expense of work. Instead of paying the person to do the front desk, you can redirect their time to other higher-value tasks, such as proofreading documents, assisting with research, or managing media. company social media.
By investing in automation where it makes sense, you can save your business big money in the long run while increasing your agility in the future.
5. Prepare to take advantage of future opportunities
Business may be slow right now. But as the holidays pass and the weather starts to heat up, things will start to pick up again.
The slowest time of year is the perfect opportunity to start planning ahead for the busier months. Maybe cash is tight right now. But a little bit of strategic planning can help you ensure you have access to the capital you need to grow your company as business heats up.
For example, having a financial plan or establishing a line of credit will allow you to react to new opportunities as they arise. Usually, this means saving money.
Imagine a supplier is having a big sale on supplies you use in your business every day. But there’s a catch: It’s a two-day sale, and you must pay your bill in full immediately to take advantage of the discount.
If you don’t have quick access to cash, you won’t be able to take advantage of deals. Your costs become higher than they should be.
With a financial plan in place, however, you can get the supplies you need at a discounted price — reducing costs and increasing your profits along the way.
Winter is coming. Depending on where you live, it can feel as if it’s already here.
While business can slow down during the coldest months and complicate your financial situation a bit, you can stretch your cash out by getting a little creative and giving it a go. smart decision making.
With the right approach, you’ll get through the winter with a decent amount of cash in reserve. If needed in the coming months, you can tap your line of credit or take advantage of your financial plan to get the money you need to grow your business in the new year.
Doesn’t that make you feel warm inside?
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