Effective cash flow management is crucial to any successful business. But it isn’t easy at the best of times! For example, just under 30% of start-ups fail because they run out of money.
Throw a global pandemic into the mix, though, and the challenge gets even harder.
Indeed, COVID-19 has dried up revenue streams the whole world over. Countless businesses are feeling the pinch. Know the struggle and want to turn the situation around?
Let us help! Keep reading for 5 top business funding tips to rebuild in record time.
- Put on a Promo
Looking to drive revenue fast to cover your expenses? Well, as you know, running promotions, sales, and discounts are one of the best ways to do it.
Consumers can rarely resist a bargain! They’ll see your products/services available for discounted rates and jump on the opportunity to buy them. You’re sure to see a surge in sales, and an all-important influx of capital, in the process.
- Sell Your Assets
Has your company acquired any assets over the years?
Well, assuming they’re unessential to the operation, you could think about liquidating them in return for cash. Be it property, cars, and/or equipment, you can generate some much-needed funds to invest back into the business.
The cash injection to come is unlikely to solve all of your financial problems. But it might, in the short term at least, relieve some of the pressure.
- Leverage Any Available Grants
Governments around the world have taken action to support businesses and mitigate the impact of COVID on their economies.
For example, the US is offering various funding options through the new CARES Act, Canada has set up an emergency business account called CEBA (learn more here), and the UK established a furlough scheme to cover employee wages.
If your operation has started to struggle, then now’s a good time to look into these options! A government grant or loan could be the lifeline you need to survive the pandemic.
- Seek Payment Deferrals
Is your business already repaying certain historic debts? With minimal revenue coming in, those fixed repayments can put a serious strain on your business bank balance.
One option at your disposal is to seek payment deferrals. In other words, the lender might be willing to postpone your repayments for a certain time period. This temporary reprieve should free up some cash to reallocate elsewhere.
Crowdfunding isn’t all about raising start up business funding.
You could use it to generate ‘survival’ capital instead! Create a profile outlining the challenges your business is facing. Market it to your audience (offering them a token of appreciation in return for any monetary support) and, with any luck, they’ll lend a financial hand to help see you through this tricky time.
Don’t Forget These Business Funding Tips
COVID-19 has taken an unprecedented toll on businesses in every industry, all over the world.
With revenue suffering and expenses staying the same, finding ways to generate business funding fast has become crucial to survival. Hopefully, the tips in this post will help you do it!
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