The majority of businesses fail by the ten-year mark. Reasons for running a business deficit vary from cash flow issues to a flood of competition on the market. When you’re struggling to pay bills and not even taking pay for yourself, keeping your business alive can seem hopeless. It doesn’t have to be, though. Here are 10 strategies to get your finances in order and breathe new life into your company.

1. Improve Cash Flow

CNBC reported around 20% of startups flounder in the first year and 47% of overall failures occurred because of lack of financing. How can you improve your cash flow if you’re growing faster than the business can maintain?

Start by looking at your growth patterns and if you need to slow down in some areas. It can be costly to go into big box retailers. While the return is sometimes impressive, it can take time to see the money come in. Your brand may not yet be at a level to sustain net-60 payments and costly returns.

2. Cut Costs

If you have a business deficit, the quickest way to turn the numbers around is to cut costs. Start by looking at fixed costs, such as rent, insurance, utilities and other services. Is there any way to reduce those prices? Call your insurance agent and inquire about a lower bill. Talk to the utility companies about fixed rate plans. Can you use more energy during lower-cost hours? One example might be a beauty salon washing towels during the early morning hours instead of the afternoon to save on electricity and water costs.

Write out every fixed and variable cost. Call suppliers and ask for discounts if you pay cash or just because you’re a good client who always pays on time. Even 10% off your bills may help with cash flow issues. Turn off lights and turn down the thermostat when you aren’t in the building. Become a penny pincher and it will add up. Only buy what’s necessary to keep the doors open.

3. Sell More to Current Customers

Most businesses operate under the 80/20 rule, with 20% of customers bringing in 80% of revenue. Reaching out to current clients is your first step to securing additional funds. Offer them a package deal if they buy more. Thank them for their loyalty. Let them know first about new products.

It’s also much easier to sell to someone who already loves your company. You’ve built a relationship with them, so they trust you. You’ll save time and be more productive with your sales to current customers.

Ask them to share their favorite product on social media and encourage others to buy from you, as well. Offer a referral bonus when they bring new business your way.

4. Collect on Old Debts

If you’re running on a business deficit, look at any outstanding invoices. If you have clients who haven’t paid on time, reach out to them politely and remind them they have an outstanding invoice. For B2B companies serving other business owners, you understand they’re busy and may have just forgotten to pay you.

If you have invoices extremely past due, it may be time to pick up the phone and reach out. Be honest that the outstanding invoices are hurting your brand’s cash flow and you’re going to have to ask them to go ahead and settle up immediately. Be prepared to take a credit card to resolve the invoice.

It’s possible you’ll lose a few clients when you push for payment, but do you really want to keep the people who aren’t paying you? You can clear the schedule and make room for better customers who pay on time. Also, you may want to revise your terms for late payers and ask them to pay half upfront and the rest within so many weeks.

5. Retain Employees

Hiring a new employee costs companies $4,600 or more. If you need to fill a position with special skills, the price tag (News - Alert) is greater. You can save money by keeping the workers you have. When finances are an issue, it’s tempting to cut hours or let people go but that should be a last resort for the future health of your business. It will wind up costing you more in the long run.

You should be honest with employees if you’re struggling and work together to turn things around. You could lose a few workers along the way who are worried about job security but they weren’t truly invested in your vision anyway. As long as you’re paying them on time and have a healthy company culture, you should be able to retain top talent.

6. Secure Additional Funding

Another way to stay afloat during a financial crisis is to secure additional funding to get you over the hump. Some ways of raising money include crowdfunding, taking on investors and asking family and friends for help.

Some small business owners sell shares of their company to those they know, keeping majority interest. When the company starts turning a profit again, the investors get a percentage of the overages. Investors are taking on a risk if the company fails to thrive after the cash infusion.

You could also take on a partner who has money to invest and boost things. If someone has worked alongside you and has a vision and passion for what you do, they might be a good candidate to buy into the brand.

7. Sell Stale Inventory

If getting money from others isn’t appealing, you could also host a huge sale and invite all your customers to move some inventory. Deeply discount items that aren’t moving. You may not make a profit on them, but you’ll recoup your losses and get some cash moving through your company again.

Bundle a couple of less desirable items with a highly desirable one. Think about something with extreme popularity like the pink Target (News - Alert) Stanley tumblers. People might be willing to take on something they’d rather not have in order to get the item they deeply desire. Bundles can move stale inventory and bring in extra cash.

8. Involve a Financial Advisor

The common reasons for startup failure include financing, but also poor timing, legal challenges and burnout. Around 12% of small business owners blame poor marketing for their failures. Involving a financial advisor (FA) gives you a snapshot of where you may be spending money unwisely and how you can change things around.

A smart FA comes up with a plan to help you through the crisis and begin turning things around. They may have you set aside a small amount of profits each week until you have a flexible emergency fund to see you through the next cash flow snafu.

9. Expand Your Customer Base

Bring more money into your company by reaching more patrons. The simplest way to expand your customer base is through word-of-mouth marketing. Ask current customers to help you and tell others about your brand. They can share your social media posts or send coupons to their family and friends.

Target the correct audience and look for inexpensive ways to reach them, such as in social media groups, by giving interviews and setting up a booth at a local craft fair. Consider who your competition is not reaching and see if they are viable customers for your business.

10. Conduct Quarterly Reviews

The best way to repair and prevent cash flow problems is by keeping an eye on the financial health of your company. Conduct reviews every three months to see where cash flows out and in. Make changes on the fly to stop any unnecessary spending or bring in more revenue.

If you stay on top of the issue, you’ll turn your business around and avoid bankruptcy.

Overcoming a Business Deficit

When your business is struggling, it’s challenging to find the perfect solution. Be open to advice from those who’ve gone before you and successfully turned things around. Many factors play into the health of your brand. Be open to trying new things until you figure out what works best. Look at the long-term needs of your company to avoid fixing the problem only to fall back into the same patterns. With a bit of ingenuity, you’ll not only survive but thrive.