Tips for sourcing extra funds and cutting costs during the pandemic cash crunch
The coronavirus cash crunch has forced small businesses around the world to utilize their emergency reserves. That is, if they haven’t done so already. We recommend taking it a step further. From our ultimate invoice hack for fash cash to negotiating vendor fees, here’s how to optimize your resources and uncover every last $ you can get your hands on.
Tip 1: Sell Your Unpaid Invoices, Not Your Toilet Paper
Are you waiting on a slow-paying client—or several? Fast-forward to payday by opting to sell your accounts receivables via invoice factoring. In a nutshell, the process goes something like this: unpaid invoices get sold to a third-party factoring service, you receive funds instantly, and the factor collects payment directly from your customer. It’s a fast and convenient alternative to loans that can help cover your immediate cash flow needs in a pinch.
Tip 2: Become A Negotiating Ninja
Now is the time to proactively negotiate as if your business depended on it (because it does). Who should you approach for a bigger cushion? Start with your lease if you’re up for renewal. You can revisit rate, improvement allowances, and free rent like a new tenant would. Have a supplier or vendor package? It’s worth asking if you can adjust the volume and fee, or get a discount for placing bulk orders. Have a long-term contract with a service provider? Take stock of any add-ons, extras, and subscriptions you no longer use and discontinue them ASAP.
Tip 3: Schedule A Vendor And Supplier Review
Scoring you a deal is your job, not theirs. Consider doing a performance review of your current vendors and suppliers in addition to new ones on the market. Then, invite them to bid on your account. Not only will this help you decide when to cut weak links, but you’ll get to choose from competitive rates that could save you money. While you’re at it, ask yourself: Do I need ALL of them? Consolidating now could help bring down costs and strengthen key relationships.
Tip 4: Expand Your Workforce With Automation
You need to fill a position you can’t afford. Your time could be used in a more profitable way (if you had more of it). Your invoices need to be traveling at the speed of light. Our cost-saving solution? Automate. Automate. Automate. Going digital means expanding your workforce without overloading your overhead, freeing up your time for tasks, receiving payments quicker, and so much more. In addition to invoice factoring, Crowdz can help automate your payroll department, trigger communications, and give you a comprehensive overview at a glance.
Tip 5: Consider Affiliate Marketing for the cash crunch
Driving targeted traffic through an affiliate network can help expand your customer base, increase brand reach, and result in low-risk sales. While there are a variety of approaches, we prefer a pay-per-performance route: an affiliate promotes your product online and receives a cut when—and only when—a customer makes an order. It’s not just about direct advertising, what you’re paying for here is results.