How to limit or slow down the cash flow from the company?

How to keep the company in the face of the impending crisis?

Get rid of or optimize fixed costs

The first step to take is to. Review your list of fixed expenses and determine what you can do away with. By conducting an expense audit, you will definitely find items that the business can safely operate without.

Another cost optimization option is to adjust your budget for purchasing consumables and supplies. Try to pre-negotiate with suppliers on new delivery volumes and postpayment.

Reduce rent

Discuss your options with your landlord and remember that your opponent is also in business. It will be unprofitable for him to lose you in a crisis, as most likely on the vacated by you premises will not soon find a new tenant. In the negotiations, emphasize that a temporary reduction in the rental rate is beneficial to both parties.

Rent is one of the biggest monthly expenses. Try negotiating new lease terms with your landlord: extend the term of the lease in exchange for a reduced rental rate, reduce the square footage. If your lease allows you to sublet part of the space, find clients.

Ask for a discount from suppliers

The crisis is a time of negotiation. You will have a series of difficult conversations, including with regular contractors and suppliers. Your task is to get a discount on the purchase of materials, supplies and services. But you need to prepare in advance: analyze the competitors of your suppliers and contact them. Find out if they can provide a discount if you start working with them. As a rule, sales managers who work with new clients have a discount for "newcomers" in stock. You just need to ask for it. Then contact your existing suppliers and tell them what discount their competitors are willing to give you and ask if they are willing to renegotiate the terms of your cooperation so that you don't leave.

Get rid of extra or hospitality costs

In times of business boom, you start spending more. Why not - your business can afford it. But when business revenues are down, it's important to think twice about whether to buy an extra coffee machine for the office or update your renovations.

The key to cutting costs is not to go overboard. Keep minor expenses that are designed to boost employee morale. What you need to do now is rally your staff to get them through this crisis with you side by side.

Rent what you need or buy used

If you do need to buy something - whether it's new equipment, furniture for new employees, consider renting, buying used, or borrowing. These options may not be the best solution in the long run, but in times of crisis, you need to cut your monthly expenses as much as possible and avoid large purchases. If your business goes bankrupt in 6 months, it won't matter what you saved by paying cash for several new computers for employees at once.

Take advantage of deferred payments

Call your suppliers and negotiate new contract terms in terms of payment. For example, agree to defer payments for a longer period of time. Having money in the cash register even a few days longer can be critical to staying afloat.

If suppliers will not agree to increase the number of days for deferred payment, it is worth offering an alternative option - to ask for a discount for early payment.

Work with accounts receivable

In other words, collect debts. This is especially true for b2b organizations. In favorable times for business it is easy to allow a situation when customers are late with payment, but in times of crisis you do not have the opportunity to look through your fingers at non-compliance with the terms of contracts

Retain existing customers

Now is the time to remind your customers why they chose your company or product. If customers choose you because of price, hint that your low prices become especially important in times of economic instability. If you can't provide the lowest price and you offer a premium product/service or provide great service, emphasize the exceptional benefits you offer - then price won't be the deciding factor and customers will stay with you.

Focus on loyal customers

A decline in new customers for a small business is a threat to its continued existence, but losing loyal customers is a disaster. As soon as you notice an exodus of customers, act immediately - call, send letters, offer promotions to loyal customers so you don't lose them.


Keeping your business afloat in times of crisis and instability is hard, but possible. Set realistic goals for yourself, your business and your employees, and plan to be in "survival mode" for at least six months to a year



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