What’s overhead? Not just the roof. For a small business overhead is usually the debt hanging over the small business owner’s head. Actually, overhead is the ongoing general cost of running your small business, and can include items like the cost of carrying inventory, office supplies, payments on equipment, and the cost of service providers like accountants and lawyers.
In the last few articles I’ve discussed ways small business owners can increase their cash flow into the business, by converting accounts receivables into cash. In this article, I outline four ways to decrease your company’s overhead. These simple solutions can help your business preserve cash, and stay solvent.
In my last blog post I talked about three simple ways to improve your small business’ cash flow, including prompt billing, avoiding slow and no-pay customers, and asking for your cash sooner.
Now I have three more ways you can increase the cash flow. More specifically, these methods help you turn accounts receivables into cold hard cash that your small business can use today.
3 More Ways to Increase Cash Flow Into Your Small Business
Some of these cash flow strategies may take a little time to set up, but you’ll find that the resulting positive cash flow will be worth the effort. By implementing these strategies, you’ll be joining the thousands are small business owners who are looking at resourceful ways to get paid sooner.
Test Marketing: Try Stuff On for Size
If you’re a sole proprietor or small business owner, marketing can seem like a headache that just won’t go away. You might have lots of good ideas, but you’re not sure which ones to pursue. And, if you’re like most small business owners, you only have a limited budget to invest in marketing, so which marketing options should you pursue?
Test Marketing an Idea
A really quick and dirty way to check out your ideas is to use test marketing. When you test market an idea, you implement the idea on a very small scale to a limited portion of your customers or “audience.” For instance, if you’re in the dry cleaning business and you want to try out a volume discount idea, you might test the idea by offering it selectively to people who regularly bring orders of $50 or more for dry cleaning. The people in this test market obviously do high volume and are probably interested in saving money.