Life after the holiday season can be difficult for small business owners – customers tighten the purse streak to recover from the headache of over-spending during the holiday season, and personal and household bills. ‘companies are piling up. As with personal consumption habits, a small business owner probably spent more on inventory, people, or marketing. And just like the diet and detox often necessary after the holidays. Here are some tips to help you recover from your expenses and debts accumulated during the same period
Cut non-essential expenses
do you really need to improve your telephone service or advertise as much in print than online? Try to analyze what costs can be reduced. Even small cost reductions associated with operating expenses in different activities can significantly contribute to significant savings, which will help you pay down your debt.
Reconsider your prices
A new year is an opportunity, in a constantly changing economic environment, to reconsider your costs and determine if your price structure is reasonable under current market conditions. See which products were the most popular and sold successfully in the past year. Did you sell a product or service quickly? Raising prices, even slightly, can increase revenues.
Give priority to the repayment of your debts
Repay the loan at the highest interest rate or any other loan for which you have pledged personal effects. Continue to make the minimum payment on all your debts while giving priority to the loan with the highest interest rate.
Consolidate your debts
Take out a loan at a low interest rate, such as a small business loan from Lendified, which offers competitive interest rates, to repay your various credit cards and loans accumulated during the period festivals. Consolidating your debts can help you and your business on many levels. This not only allows you to pay the highest interest rate loans and cards, but also to worry about one payment.
Make a sale
A sale can boost your business and give your sales force an easy opening for approaching the customer. Do you have dormant or holiday inventory that doesn’t go out? Make a sale. Inventory that does not sell and that accumulates on shelves is wasted money.
Improve your accounts receivable
Overdue and unpaid accounts can have a significant impact on your cash flow and your balance sheet. Providing your customers with multiple payment options or discounts to those who pay their accounts quickly are just a few of the ways to keep your cash inflows positive.