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.
Pay Less for Credit Card Processing: Generally, soliciting bids or purchasing your own processing equipment can save you money.
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 which 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.
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.
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.
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 (such as 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.
Collecting unpaid debts are 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. To schedule an appointment with Mr. Weisblatt, call our Houston office today at 713-666-1981.
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