Cash is one of the life forces of small businesses. Without it, or with insufficient cash reserves, small businesses find themselves in precarious commercial situations, unable to absorb major — or sometimes even minor — blows to their finances. For this reason alone, small businesses should always maintain an appropriate cash reserve for their operations.
How Small Businesses Can Bolster Their Cash Reserves
It can be difficult for small businesses to thrive during tough times when customers are few and far between. One of the best ways to make money is to NOT SPEND ANY OF IT! Here are a few tips for small businesses that want to reduce their monthly spend:
Ask for Discounts
When times are tough, even suppliers need business, so you may be surprised at how many suppliers will lower prices if you ask. Try to talk with the “decision maker.” You probably will not make much progress talking to the person at the sales desk.
For legal guidance on how to save cash and increase your cash on hand, reach out to The Weisblatt Law Firm to speak with a seasoned Houston business law attorney. Call (713) 666-1981 for a consultation today.
Pay Less for Credit Card Processing
Generally, soliciting bids or purchasing your own processing equipment can save you money.
Use Business Credit Cards with Awards
Take advantage of the awards, points, and cash-back offers from credit card companies. Funneling all of your business expenditures through rewards cards can lead to significant cash back and savings on flights, hotels, purchases, and more.
Call the Landlord
Renegotiating a lease can be difficult, but if your lease will be up for renewal soon, you may be able to convince your landlord to give you a better deal. This is an excellent time to consult with a lawyer who may be able to spot opportunities that might be invisible to you.
Sublet Unneeded Space
If your business downsizes, rent out unused space if your lease allows for subletting. You might want to even consider moving your business to another location and renting out your entire building. Again, speak to your lawyer first. Some leases permit subletting and some do not. You should make sure you understand your legal rights BEFORE making a sublease.
The Weisblatt Law Firm has a strong reputation for vigorously pursuing the solutions its clients need.
Reduce Travel
If your business requires a significant amount of travel, try to cut it in half. This technique may help you eliminate less profitable trips. Consider online video meetings as a low-cost alternative. If your business is growing in a certain location or in general, you may find it to be ultimately less costly to rent a satellite office in a location you visit frequently.
Cut Back on Insurance
Don’t skimp on the essential coverage for fire, theft, and liability. These insurances are important to maintain and protect you from catastrophes. However, it might be a good idea to increase deductibles or cancel nonessential coverage. Before doing so, it is important to consider the ramifications of your choice. Consulting with a business attorney will help ensure you make the appropriate decisions.
Try to Renegotiate Contracts
Even if you’ve signed a contract to buy a product or service, you may be able to negotiate new terms if business conditions change. If the business conditions change radically (for instance, due to a war or a natural disaster) you may have a legal excuse to break your contract without the cooperation of the other side. If in less radical situations, you might be surprised to discover that once the other party is aware of your financial problems, they may be willing to accept a partial payment from you rather than risk receiving no payment at all if your business fails. Seeking legal help early in this process can greatly increase the chances of a successful renegotiation and reduce the likelihood of adverse repercussions in the event that the renegotiation fails.
Finally, collect on unpaid debts to bolster your cash reserves. Collecting unpaid debts is essential to the success of any business. Texas attorney Andrew Weisblatt is a skilled Houston B2B business collections attorney who understands how to effectively collect from businesses that may be reluctant or unable to pay their outstanding financial obligations.
Protect Your Business
Business credit is great, but it can be unpredictable and not always available. It also costs. Small businesses need to do what they can to increase their cash reserves in order to remain profitable and grow. An experienced business attorney can help immensely.
To speak with Attorney Weisblatt about your concerns, call our office at (713) 666-1981 today. Let The Weisblatt Law Firm provide you with the directed and effective guidance you need.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
