Going into 2011, you may hear noises about the economy recovering and picking back up, and how small businesses won’t be as crunched in the coming year. Maybe so. There are some things you can do to continuously shore up your business no matter the economic climate. Here are five things you can do right now.
- Trade assets for cash Change non-performers in for cash, even if you sell for less than you want. Bottom line: if it’s not performing, set it loose.
- Love on accounts receivable and cash management As a business owner, there are lots of tasks you can delegate. Cash management shouldn’t be one of them.
- Be a renegotiator Look into renegotiating term loans, including real estate mortgages, so you can take advantage of lower interest rates. Longer amortization + lower rates = saving cash.
- Contract-ectomy It’s time consuming, yes, but you should review every contract for services to make sure you still need them. Be ruthless here.
- Rent renegotiation If you rent your space, talk to your landlord about adjusting the terms of your lease. While the landlord won’t take a major loss, he or she knows that prospects may not line up to take over the space you might leave.
Next time we’ll present four more steps to take now to bolster your small business or franchise. Keep this list handy and revisit these issues at least quarterly.