No money to pay your bills? Don't borrow money, just don't pay your bills.
You have to pay them at some point, but there are tactics to slow down money flowing out of your bank account.
But FIRST... here are some bills you need to pay on time:
Anything that puts you in breach of contract and puts your business, your home, or your health at risk.
Other than that, most bills can be postponed past the due date without dire consequences.
Look at bills that you owe large corporations, who are used to delays. Telephone, internet, utilities, insurance companies. You may be able to wait up to 60 days without consequences. Let them know when you'll be paying.
Suppliers: Make sure that you talk with them. Make payment arrangements. Don't surprise them. Make a partial payment. Many times your relationship is more important than delaying payment.
Mortgages and rent: Most have a no-penalty grace period. Use it when you need to.
Please, be careful with solo-entrepreneurs and...
Why don't employers see the huge CASH cost of losing their best people, and give them what they need to stay?
Employers spend a lot of extra money when they lose their best people. Here are some of the incremental hard costs:
- Training costs for a new person
- Recruiting costs
Even bigger are the "hidden" costs:
- Employer's time to recruit
- Lost productivity
- Emotional cost to the team
What would it take to keep the best people?
1. Ask them. They'll tell you.
2. Some money. Less than replacing them.
3. Recognition. Get creative and see #2.
4. Bonus idea: Reward them with something that benefits their significant other and/or family.
Back to the cold hard cash facts. Studies show it costs you 33% of someone's annual salary to replace them. You can keep people for a lot less.
Am I right? Wrong? What's your experience?
Let me know in the comments below.
#wtcfg #humanresources #finance
I just came across this favorite Cash Management Minute, and find its principles to stay true as ever.
It is much more effective to decide what to do instead of what not to do - in skiing and in business!
Does anyone else find this to be true? Or are you looking forward to hitting the slopes this winter like I am?
Let me know your experiences (or your favorite place to ski) in the comments below!