Managing expenses and cash flow

The economic recession has affected all business, some more than others. As a startup, managing cash flow is critical to survival. For a self-funded startup, apart from savings, there is nowhere to turn to when business slows down. If timely and systematic action is not taken to manage expenses, there may no alternative but to shut down abruptly These are some of the things a startup can do to manage cash flow and improve efficiency

1) Track and chase receivables
2) Ask for advance payments where possible
3) Complete pending projects at the earliest
4) Communicate to all team members transparently about the cash flow situation and tell them to take necessary steps to minimize expenses and maximize productivity.
5) Set clear and bigger goals and targets with timelines for team members
6) Measure performance of team members
7) Mentor/guide team members who are lagging behind
8) Plan to let go of those team members who are unable to cope with the revised goals and targets
9) Try to negotiate rent for infrastructure
10) If rent is too high, look for options to share office space with other startups
11) If sharing is not possible, move to a smaller space
12) Delegate operational aspects to senior team members and focus more on business development