How Your Fledgling Firm Can Conserve Its Cash

Every penny is a prisoner if your new business is on a shoestring budget.

When cash flow has slowed to a trickle and your bank balance would make a pauper weep, most of your day is spent belt tightening and scouring the web for alternative ways your fledgling firm can conserve its dough.

But you’re not alone.

According to statistics, more than half of new businesses don’t survive beyond five years, as a lack of bank lending, the UK tax system and the day-to-day running costs cited as the top reasons for failure.

Whilst these figures are undoubtedly alarming, there are plenty of ways for your business to avoid crashing and burning and simply becoming yet another painful statistic – starting with our top tips listed below…

Streamline Deliveries

Whatever your line of business, it’s extremely likely you’ll be sending parcels to customers or clients – so one of the easiest ways to boost your coffers is to ditch your old provider and shop around for a cost effective delivery partner.

Whether you’re sending a parcel to Peru or you need a courier to China, it’s vital you hit the comparison sites to guarantee you’re getting the most bang for your buck, whilst making sure your customers’ deliveries are on time and handled with the utmost care and attention.

photo 401(K) 2012 via Flickr

Trim the Fat

It’s hardly a secret that your employees are your most valuable asset, but if you have one or two bad eggs on the wage bill, those who are reluctant to pull their weight and seem determined to bring everyone else down, it’s time to put their necks on the chopping block.

As a wet behind the ears business owner, you may have made some gung-ho hiring decisions, which is why you have to take the bull by the horns and weed out the chronic underperformers stealing a wage from your firm.

Review Your Target Market

In the beginning, your business plan outlined all your grand ideas – what you were going to sell, to whom you were going to sell it, and projections for year on year growth – but as time has passed and profits have plummeted, this map is as much use as a chocolate teapot.

In short, it’s time to re-evaluate. This means reviewing whom your target market is, identifying which products are relevant to this group and putting your time and money into effective marketing – after all, your company’s future depends on it.

Now it’s over to you …

Do you have any other ways a fledgling firm can tighten its belt? Perhaps you’ve implemented some of the ideas above? Whatever your story, please let us know by leaving a comment below – we’d love to hear from you.

Guest Author: Lolita Di