Whether you are starting your business or facing a serious drop in revenue, cashflow problems become normal. Taking up fresh initiatives, investing in new equipment, or capitalising on opportunities is problematic. Eventually, a business shuts down with deep debt.
What is the primary cause?
It is nothing but improper decisions and cash flow management. When a business encounters low sales and growth, it must re-analyse its capital. The business owner must take immediate initiative to utilise the available cash reserve. Or forge strategies to utilise a minimal portion for the maximum benefit.
Yes, you can run a business in crisis with a strong strategy. It requires the team’s cooperation and staff and work towards a uniform goal. However, you must maintain the business momentum despite the financial crunch. The blog lists the best ways to counter business needs with limited cash flow.
How do you capitalise on opportunities and grow a business with limited capital?
Limited capital is the primary obstacle to growth. It creates a panic-like situation as the stakes are high. What happens if you don’t pay the suppliers? It will impact your supply chain. Moreover, you risk losing customers. Don’t worry. Businesses with limited capital manage their needs and get back on track. If facing a crisis-like situation, the blog may help you run impactfully:
1. Revise your invoice clearance dates
One of the greatest issues in maintaining good cash flow is – untimely or delayed invoice clearance. Businesses providing 45-60 days to clear the dues face the maximum problem. Clients delay the payment unrealistically, and maintaining operations gets tricky here.
Thus, businesses with strict cashflow requirements and crises must re-analyse invoice clearance policies. Reduce the bill clearance dates from 45 days to 30 days. Moreover, you may impose a penalty for payments delayed over 60 days. It will help you get the dues timely.
2. Increase your business operating hours
Well, it may not impact directly, but indirectly, it may prove to be a great force. Most businesses with capital issues increase their operating hours. They expect to earn extra from this. However, analyse the timings for business. Different industry businesses have different operating hours.
Decide the hours within which you can benefit the most from operations. For example, if you have a food outlet business, analyse the business hours during which you receive the most customers. It can be the lunch hour. So, instead of closing it by 3, take an hour extra. It will help you increase your business revenue slightly.
Opening for more hours means extra supplies. If you need financial help to update the inventory, facilities like bad credit loans from direct lenders with no guarantor restriction can help. What can be better than getting a loan without a guarantor or credit restriction? You can use it to capitalise on the opportunity by updating the inventory. Continue it for a week and analyse the growth.
3. Automate some business aspects
It is one of the best ways to optimise your business expenses and save money upfront. Automating certain business aspects helps you cut on manpower. For example, if you have too many individuals for Tally, you can automate the aspect and save on salaries. Moreover, it is one of the fastest ways to conclude results.
Apart from that, you can also consider redundant aspects to automate. It can be the marketing campaigns and posts. Instead of creating one daily, you can schedule it all using a tool. It saves time that you can utilise on other business aspects.
4. Add a complimentary product to the existing one
Businesses brainstorm the best ways to increase their capital and pump in resources. It is one of the common strategies that a business takes up to maximise revenue. Investing in a complimentary business product helps you garner extra customers and revise the revenue gear. You can choose the product by analysing your business type and customer requirements:
For example, you provide the best environmental-friendly mattresses. If it does not pay you much or the business is slow, you can complement it with pillows and sheets or even deal in the best beds made with environmentally friendly materials. For this, you can tie up with a similar company or manufacture your own to keep 100% of your revenue to yourself.
Adding complimentary products to your business shelves means more preparations and staff. Moreover, it requires investment in materials and manufacturers. In a crisis, it becomes difficult to do so.
Everything requires rounds of cash at every stage. You can fund your needs with facilities like crisis loans for bad credit scores. It is for businesses with low capital and risk shutdown. It helps businesses struggling to optimise their operations and encounter growth. While growth may be slow, it may help you embark on a new journey. It could prove a game-changer for your business.
5. Improve social media presence and brand-building
Leveraging the power of social media is one of the best ways to improve your cash flow without investment. It is a cost-free way to increase your customer count and sales number. You just need the right strategy to clock in most customers. Here are some of the best ways to attract and engage with followers on social media:
· Encourage satisfied customers to post reviews on Yelp, your website, and social media.
- Use Reddit profile to generate sales
- Get active on Quora and answer the most relevant questions
- Launch campaigns, polls, and behind-the-scenes stories for maximum presence.
- Sync email campaigns with social media advertising for a much broader impact.
- Attract customers through Twitter
- Provide freebies and market the same on social media channels
- Launch podcasts to connect with customers and present offerings.
These are some basic tips to increase your brand awareness and capture eye-balls to your products.
These tips may help you spark business growth with limited capital. Apart from this, seek other ways to improve the business positioning. If you want to improve, research, analyse and optimise a few business aspects. Analyse the importance of automating and using it to your benefit. Yes, you can capitalise on it to grow.
Try whatever you can with the potential to nail. For every initiative, you do not need massive capital.