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Cash Strapped Small Company

Ravi Ramcharan's Profile

Hello all,

What would be your advice to the owner of a small hardware store that has no cash, no access to credit facilities and who is owing suppliers but can't pay.

The suppliers are now demanding cash in advance payments.

Inventory is stagnant as he can't replenish stocks and customers are just not buying! If they come to buy he doesn't have what they want due to him not being able to purchase it from his suppliers.

He may get some money borrowed next week. If he does then should he use it to pay off suppliers?

He is thinking of paying them a bit week by week, and using the funds to re-stock the business so he can attract customers.

Would this be a sound strategy? What about if he restocks but sales doesn't hold up?

My thinking is this is a good short term strategy, but how can he prevent this happening in the future?




Maqsood Hassan
Title: Manager Tax
Company: Rafiq Spinning Mills (Pvt.) Limited
(Manager Tax, Rafiq Spinning Mills (Pvt.) Limited) |

I also do a small online business. I have applied a very successful strategy. It may take some time but definitely work.
The owner should obtain the loan and firstly he must invest it in those items who have high demand. Those items can be sold easily. Then he must build his store around these items. Which means the items in high demand will be sold regularly but he must add other items which may have higher profit ratio.
It will take time but definitely will work. I have my personal experience with this.

baker collins
Title: Manager
Company: Baker Collins
(Manager, Baker Collins) |

Low-Budget Marketing Tactics for Cash-Strapped Small Businesses:
1. Develop a Referral Program
2. Partner Up
3. Apply for Business Competitions & Awards
4. Get Remarkable Business Cards

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