Team up with other Businesses

Need to hold on to more working capital? Consider teaming up with a compatible business to save on costs. We've talked about bartering services where two businesses can get the services they need by helping each other out. Teaming up, however, means combining your resources.

Leveraging Strengths

For example, one company may be a pro in the sales process while the other does administrative tasks well. Neither company necessarily does sales and administration for a living. Rather, they're helping each other in an area all businesses have to contend with.

The company doing the sales works on bringing in clients for both businesses. The company doing the admin handles the invoicing, payroll and other operations-related tasks. As a result, one of the companies hired back a laid off worker AND they're on their way to increase revenue for both companies. They still manage separate books.

Another unexpected benefit comes out of this teaming up: brainstorming. You get a whole fresh team and perspective to discuss your ideas and flesh them out.

Learning from the Experienced

Some businesses seek out an experienced company for mentoring. Mentors have been in the business longer giving them the ability to provide insight to younger businesses. These insights could lead to better cash flow and business management. Most mentor-protégé relationships don't involve any payment to the protégé. In this situation, however, the mentee might set up a profit sharing plan or another agreement to pay back the protégé for the advice given.

This set up requires finding the right partner because it involves two companies rather than just two people. Before looking for a partner, determine what you want and expect from a partner including ideologies, culture and philosophies. Once you figure that out and document it, interview potential partners.

Alternative Solution While Searching for the Right Partner

Since it takes time to find the right business to partner with, your business may need the cash now. So consider talking to financial companies and private lenders. Invoice financing is one solution that doesn't require paying back anything as the money's already yours from unpaid invoices. The lender handles those unpaid invoices and the risks that come with them while you get your money now -- just at a discounted rate (better to get most of the invoice now than nothing and keep waiting for clients to pay).

So not all roads point to a bank and a loan.