If you own and manage a small business, you must have been faced with the dilemma of cash shortage. When there is no money to pay overdue bills, or cover the week’s payroll, or cope with an emegency, such as a busted machine or a leaking roof.
Faced with such a problem, your instinctive action must have been to run to your bank or the nearest money lender for a loan. What you might not know is that there are ways to raise cash within your premises if you looked hard enough.
Consider the following:
- Are there machines, gadgets or tools no longer in use? Or perhaps an equipment is still working but no longer meets your new, increased requirements in volume and quality. Consider selling them to others in your line of business.
- What is your inventory level? Do you have high inventories in finished products and/or materials that are just lying around, taking up space and tying up your woring capital? Why not hold a bodega or inventory sale with attractive price downs or buy-one-take-one deals.
- Do you really have to pay your payables on time? See if you can postpone paying some of your bills until the time your receivables mature, as long as you don’t run the risk of having to pay penalties or harming your relationship with your vendors.
- Do you have more working space than you can use? Consider leasing out a room or a corner to another small businessman in need of a workplace. This will not give you immediate cash but will assure you of extra regular income in the days ahead.