For businesses that rely on calls, sales make up the bulk of revenue. In tough economic times, however, those sales may not be enough to cover expenses. That's when you need to get creative and find alternative revenue streams that can help pay the bills and draw in enough profit to get you through when your calls aren’t generating sales. Sometimes, that means thinking outside of the box and coming up with novel strategies to maximize your resources.
This is a line of funding that most businesses don't take full advantage of. Your accounts receivables balances represent the money that others owe you. It may be clients that are past due on their accounts, or it could simply be those who are within their repayment window. Collecting this money that is technically yours anyway can quickly add revenue to your books. Of course, you may not have the time,r resources or experience to go after those accounts yourself. In that case, there are specialized lending products that allow you to borrow against them. These loans, called receivable funding, provide a quick infusion of working capital into your accounts. Even more importantly, it is generally much easier to secure than a traditional bank loan.
A line of credit is a unique lending tool. You can draw from it over time instead of taking a lump sum payment which makes it a valuable tool for replacing working capital. That also means you are only paying interest in the money you use instead of the entire line of credit. There are several tax implications to a commercial line of credit that you will want to keep in mind. In many cases, interest on borrowed funds can be deducted as a business exp[sense while the loan amount is not counted as income. However, what you use it for may change that. Depreciation can increase the value of a line of credit if you use it to purchase equipment that will be in service for several years. Always talk to a financial advisor before making a significant business decision that could affect your tax situation.
Do you have equipment that is no longer in use just sitting around? If so, this could be an excellent source of emergency revenue. New and expanding businesses often turn to used equipment as a way to stretch their budgets. If your pieces are in good working order, you can list them for sale directly. There are many websites that offer that service for a minimal charge. You also have the option of working with a third-party seller who can inspect the equipment, make any necessary repairs and perform maintenance before listing it. This can make the process much easier for you, but you will pay for that with a lower profit.
Extra equipment isn't the only potential source of revenue many businesses have lying around. Unused floor and office space is a valuable commodity. Consider renting out that extra space to other businesses that are looking to expand. Even a single office can be a good fit for someone looking to get out of a home office. Offices with open floor space might be able to carve out extra rooms where businesses or individuals can keep extra equipment so long as they don’t mind the noise that comes with call centers.
Take a moment to think about the goods and service your business provides. Could you share information about that with others? If so, why not host workshops or classes to generate extra revenue. This can be especially lucrative if you are able to target youth markets. For example, a call center might offer multi-day camps to teach sales techniques to potential recruits. Just be sure to check with oversight organizations to make sure you are operating according to regulations.
A drop in sales doesn't have to mean financial ruin for your business. Explore alternative revenue streams like leveraging receivables or leasing out unused space to make ends meet.
Publish Date: August 21, 2020 5:22 AM