6 Steps to Take If Your Small Business is Running Out of Money

It’s always worrying when you notice that your small business’ bank account is running low. Whether you’re scaling up or simply going through a quiet period, negative cash flow can take a significant toll on the financial health of your business. Hard times don’t have to spell the end for your enterprise, however. It’s time to re-evaluate your current practices and employ some of the following steps to ensure that your bank balance bounces back.

1. Re-Evaluate Your Pricing Structure

Difficult financial times are a sure sign that it’s worth reconsidering your pricing structure and making some changes. You may be undervaluing your services and selling yourself short. Take time to consider the value you provide and research your competitors’ rates, too.

Of course, your existing customers won’t be happy if you hike up your prices overnight. You deserve to get paid what you’re worth, but during challenging times the last thing you want to do is aggravate your entire customer base! It’s fine to charge new customers higher prices from the get-go, but implement more gradual price changes for your existing customers and give them plenty of notice.

2. Cull Your Software Subscriptions

Over time, software subscriptions mount up, and many business owners continue paying for software that they’ve ceased to use. Make a list of your subscriptions and only carry on paying for the ones which genuinely deliver value to your business. You’ll be surprised how much money this simple step can save you, especially over the course of several months.

3. Reduce Your Wage

For short-term cash flow issues, taking a smaller wage as a business owner can help to smooth things over. You deserve to get paid, but giving up a chunk of your salary for a month or two may be able to protect your business’ bank balance until cash begins to flow more freely again.

4. Go Green

Power usage tends to be one of the highest costs for a small business, so cutting down on energy costs can help you save money. Installing energy-saving bulbs, investing in insulating blinds and replacing paper towels with hand dryers can significantly reduce your monthly energy bill.

5. Shorten Your Payment Schedule

Many businesses allow their customers or clients up to 90 days to pay invoices, but if your funds are dwindling, it’s time to reduce this window. Cash flow is just as important as profit to the survival of your business, and if you run out of available funds now, getting paid in two or three months won’t help you much. Consider shortening your deadlines to 30 days or less to improve your cash flow and create a more continuous revenue stream.

6. Don’t Depend on a Handful of Customers

Of course, loyal customers are important to any small business, but becoming overly reliant on a small number of customers puts your business at risk. In this situation, losing a single customer can do significant damage to your finances, so don’t put all of your eggs in one basket.

Do nurture your existing customers and encourage them to spend more, but make sure your entire organisation doesn’t depend on repeat business from one or two sources. Taking on just a few new, smaller clients can help when your bank account is suffering.


A dwindling bank account is never good news for a small business, but it’s not necessarily a death toll. By taking action today and implementing the above money-saving steps, you can get your business back in the green and improve both your profitability and cash flow.

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