On my blog I often talk about not spending money, bootstrapping and cash-flow planning. However a recession can be a excellent time to spend money too, providing you have the cash to spend – here are some tips on how to spend & save at the same time:
- Always ask for a better price, no matter what, always ask. If the supplier knows you are ready to buy for the right price they will cut you a deal.
- When buying from big corporations always pay late, their money collection procedures are very transparent. Use this to pay late, complain about anything and everything, so you can justify delaying payment. They’d do exactly the same to you if they could – so no false sentiments here. Just make sure you have the money when it is time to finally pay.
- Get better payment terms by negotiation. Promise to buy from one supplier for better payment terms, like 60 or 90 days.
- Get better payment terms by non-payment. Some utilities companies get panicked if you don’t pay and they will offer you a monthly payment plan, take it.
You can easily find out how far you can take these games, by finding out how companies collect their money. Just one thing don’t do it to fellow small business owners, they need their money just as much as you do. Given the fact that small business can’t get credit, while the big boys can, let them play bank for you for a while.
This is no time for modesty, it is time for survival and we all know cash is king – so keep it as long as you can. – ST.