Has a tight cash flow got you and your business in a bind?
Unless they have a rich uncle waiting in the wings, most entrepreneurs will experience an episode of cash-flow angina, when circumstances put a painful squeeze on cash reserves.
Even a savvy entrepreneur cannot possibly foresee all the pitfalls of starting a business. When a key employee is the only helper you have to get the business off the ground and that essential worker suddenly suffers a serious injury, you’ve still got promises to keep. Those ongoing financial obligations don’t stop for life’s little setbacks.
Face it: Sometimes the thing you need the most is not business savvy, a super-talented employee or the latest techno-gadget. There are times in life when laying your hands on some cold, hard cash is the top priority to keep your business going.
If you’re facing a case of cash-flow angina, here’s a few tips to get through the pinch.
- Do a quick inventory of pressing obligations. Which folks are likely to give you a little extra time? Give those people a call and be honest in explaining the situation. If you haven’t cried wolf too many times in the past, lenders will often give you forbearance. A personal phone call is in order. Don’t just fire off a quick email. Take time to build a relationship with your creditor.
- What obligations can be put off? Avoid triggering dire consequences such as incurring a big ding on your credit rating. The last thing you want to do is suffer through a lengthy period of time with a poor credit score.
- Weigh the long-term cost. Consider the implications to defaulting on a loan versus paying a higher rate in the short-term. Stress takes its toll and even for those who tend to run a little late on paying their bills, the vast majority of small business owners feel bad about not being able to pay their obligations on time.
Always remember business success is determined by a person’s can-do attitude. Don’t let discouragement wear down the optimism you need to push through to achieving that entrepreneurial dream. Put up those dukes and fight your way to victory!