In running a business, a difficult time will surely arise, where the problem is related to cash flow problems. There is some evidence that many business owners often encounter very serious cash flow problems in their businesses. These problems will surely threaten the continuity of the business. Here are seven tips that can help your business survive when funding is tight and times are difficult.
1. Reduce Your Working Capital
When times are hard, the most logical thing to do is to start cost cutting here and there. You can cut your working capital if you freeze your increase in inventory. That’s because inventory usually binds the cash you need freeing it to be used elsewhere in your business. In addition to reducing your inventory, you can also be more diligent in collecting your debt. Which helps to increase your cash inflow.