All businesses will experience a cash crisis at some point in time. There is just not enough cash to pay all your bills. What to do now?

Addressing a cash shortfall should be done early and honestly. How the crisis is managed will determine the outcome - good or bad. The steps taken or not taken will affect the reputation of the company and the management team. Relationships will be affected with employees, vendors, and bankers. And ultimately the decisions will determine if the business will even survive. It may sound dire, but only if the situation is ignored. The good news is that there are several quick steps to take to improve the cash crisis right away.

Become a Spending Disciplinarian

Cut out all unnecessary expenses. For every expenditure ask the question, "will this get another customer?" Does a piece of equipment really need to be replaced or can it be repaired? If equipment does need replacement, can it be bought used? Is a new vehicle necessary just because a the current lease is up?