Look for all areas you can cut expenses, except advertising and marketing (if you cut those, you will not only see a slowdown, you’ll be causing it). Really look for waste in your company and start cutting it fast anywhere you can. Cut the people you’ve been wanting to fire but didn’t have the guts to as well. Hire salespeople for sure, but cut all the rest of the “dead weight employees,” too.
Increase credit lines at your bank and with credit card companies now, and every six months for as long as you’re in business. Credit card companies will increase your lines every six months just by you calling them. Also, stop buying stuff. Really. Put a freeze on virtually all the spending you can. You’ll be amazed at how much money you free up just by saying no to virtually all potential expenses. Tighten the belt fast.
Collect from customers faster than you used to. Collect COD as much as possible. Get customers to pre-pay. Increasing your cash flow at times is as good or better than cutting expenses.
This last point will help increase your cash flow as well, but you have to be gentle and selective in doing it. Pay your bills slower than you used to as well. Delay paying receivables as long as you can. Even just waiting until the last few days allowed will make a big difference for you.
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