You finally went ahead and quit your job, and when leaving your once predictable income behind, you are now in a completely different position financially, with an income that depends on many factors. You might have a great month and be thinking about hiring, then you get two bad months, one after the other, and this can have a severe effect on cash flow.
Create a Safety Net
If your freelancing monthly income is uncertain, you need to have some form of financial reserve that you can call upon if necessary, and with personal loans for bad credit from Debt Fix, a leading loan provider that has helped thousands of entrepreneurs through difficult times by providing a short-term personal loan.
Chase Unpaid Invoices
A carefully worded reminder can work wonders when the customer is late in making a payment, and this should be an area of the business that is monitored. It might help you to delay paying your supplier for a
few days until that check clears, but this will not do your business relationship any good and should be avoided, after all, you might need their help one day.
Put Something Aside
When things are good, and the orders are flowing in, put a percentage of the extra money into a separate account, which is there for a rainy day. Of course, you’ll be doing everything you can to bring in business, yet sometimes that isn’t enough, and while it might be unlikely that you would go three months without a sale, it could happen. Resist the temptation to draw upon those funds, as that is your safety net, that and the ability to take out a personal loan, should it ever come to it. There are a few tips on how to cut costs for the small business owner that you can find online, which might give you some inspiration.
If you can see that funds are starting to run low, look for ways to save money, in both your business and personal life. Sometimes sacrifices have to be made, and with 80% of businesses that fail due to lack of funds, you can’t afford to take the risk of being another failing business statistic. Look for ways to reduce spending without harming the business. No excuses, they are there, if you look hard enough, and by saving a little here and there, the overall picture will be a little healthier.
If things become desperate, you can always search for an online personal loan provider, who can set you up with a short-term loan within hours rather than days. Many factors come together to determine how your income comes in, and even with the best in the world, you can still land yourself in deep water.
The number one reason why new businesses fail is lack of money, so it makes sense to come up with a contingency plan, one that would help your business survive a turbulent few months until things pick up again.This post may contain affiliate links.