2. Downsize in your Startup Business
Contrary to the popular belief, downsizing for a company isn’t very profitable in the long run. Every employee represents an investment in hiring cost and training—this investment is gone plus it has emotional impacts on other employees. So the situation demands to survive.
But before you do that, you must identify your minimum workforce required to sustain the operations while also not losing the essential talent. You should be fully aware of the key people in your business who are running it.
How do you know the key people? Well, here’s is the little guide:
- These employees are subject matter experts and constitute the key leaders—essential in managing a setback.
- People who are crucial in generating and realizing revenue.
- These people are also essential for financial management and other operations.
Apart from then, cut marketing and sales spend until your customers are buying again. Or take any other step that reduces the burn early on. This will have a lasting effect on the later cash balance and the cash horizon.
3. Consider Bartering
What is Bartering? Well, it is the act of trading services or products without the exchange of money—just like in the old times. Although the method is as old as the commerce itself, it can not be more relevant considering the crises in cash flow.
The process of trading a service/product can be extremely beneficial for small businesses and startups. At this moment, business individuals are thinking beyond cash and considering bartering.
As a startup you should do the same for many reasons:
- A trade-off style business plan can be great for placing value on human resources and commodities.
- The usual exchange-of-money method is not a very demanding option at this moment.
You can practice the method of bartering by simply negotiating with the people you want to do business with. Find out and offer your products or services in return for something you are looking for.
To illustrate, you might offer your company-wide training in return for free content writing services. This is an innovative idea because normally buying this service from an agency would be an expensive option.