A Costa Mesa business attorney is often retained to provide advice for new businesses. He or she can provide insight into the characteristics that are necessary to run a successful business. One of these characteristics is to have a handle on cash flow. Some ways to improve your cash flow include:
Only Buy What You Need
When you are first starting out, it may be tempting to go out and buy all of the latest equipment. If you are not certain you need equipment, hold off on purchasing it or use a lease so that you can return it after a period of time if necessary.
When other businesses know that you are shopping around, they will be more likely to offer you competitive rates. This concept can apply to many industries. It can also apply to your credit card processing service. Shop around for the most favorable rates, based on the history of your consumer transactions.
Lower Your Rent
One of the largest expenses that many businesses have is a lease. However, you may be able to contact your landlord and renegotiate a lease so that you receive a more favorable rate. Many small businesses are primarily operated out of a home office until profits improve. You may simply want to allow your lease to expire rather than be on the hook for another year or longer for expensive rent. Another potential option is to sublet space that you do not need.
If you have already signed a contract to purchase a product or service, you may be able to cancel the contract or renegotiate it so that you have more favorable terms. Vendors may be more willing to work with you in order to avoid a rescission. Some businesses may be willing to accept a penalty payment that can be substantially lower than the amount of money you would be out if the contract is fulfilled. Also, consider asking your Costa Mesa business attorney, accountant, and other professional service providers to lower their rates.
If you would like more information on other ways to improve the viability of your business, contact a Costa Mesa business attorney from Daily Aljian LLP.