In this unprecedented time, we know you are likely already considering ways to reduce your fixed costs. It is best to approach your cost cutting with precision and intention. Here are some potential ways to approach your cash flow management:
- Rent. See if you can negotiate a lower monthly rent by either signing a long-term lease with your landlord or asking for a temporary price cut.
- Marketing. Reduce your marketing spend by leveraging social media. It is critical to communicate openly with your customers about the status of your operations and the protective measures you’ve implemented. Social media, email and phone calls provide you a free way to communicate these messages.
- Inventory management. Try to negotiate a better deal from your current suppliers or find alternative sources who can provide the same service or product at a lower price. Also, if you believe your demand will decrease, try to optimize your supply to match it.
- Seller note. If you have a seller note, contact the seller to request a lower monthly payment.
- Refinance. With such low rates, consider refinancing your home mortgage and apply your cost savings back to your household or business.
In addition to reviewing your fixed costs, if you have business interruption insurance, now is the time to contact your insurance agent to understand what your policy covers and doesn’t.
Live Oak Bank is committed to supporting our customers and helping your businesses thrive in the face of an ever-changing environment.