Keep your business cash during a financial crisis. The COVID-19 pandemic has taught us many things; on a personal and professional level. In my personal experience, having an emergency fund was what I learned the most on this pandemic; and I believe the same applies to businesses. If you didn’t have an emergency fund for your business, or if you were part of the lucky ones who had funds but ran out of it, on this blog, we are going to show you three ways you can conserve cash during a financial crisis.
- Do a financial review.
Be on top of your cash flow management all the time and not only when the economy is not as good as you would like. Canceling unnecessary recurring charges, questioning why you are spending that money, and finding a way to optimize your finances is an important task to do all year, every year.
- Talk to your clients and vendors.
Ask your vendors for payment extensions if possible. Big companies are usually sympathetic to small businesses in times of crisis. On the other side, try to get your client’s invoices as fast as possible. Consider offering discounts for early payments; even when less cash comes to your account, it comes sooner, and remember that what you need at that moment is cash flow.
Being cautious about your business economics is only one part of taking care of your business. Another way you can make sure your business not only survives but thrives is by working along with a business lawyer. If your business operates in California, we can help you. We are an established and growing law firm that specializes in business litigation matters for businesses located in California and the Pacific. Call us now for a Strategy Session. We can talk about how we can help you to run your business without worrying about the underlying legal consequences. We can be reached at (714) 415-2007 or reserve your spot by clicking here.