Ways to Improve Your Cash Flow
We all know how vital it is to control the flow of cash in and out of your business. Here is a brief list of 5 things that can help you improve your cash flow in the short term.
1. Invoice accurately and on time
Everyone makes mistakes – we are only human after all. But, the smallest mistake on one of your invoices provides an excuse to delay payment. So make sure that all your invoices are accurate
2. Think of effective ways you can increase payments to you.
Cut down on the amount of time you spend waiting for a payment by offering an incentive. It may seem crazy, but a discount of even 1% or 2% can increase your chances of speedier payments. Don’t think that just because such an incentive wouldn’t work for you that it may not also work for someone else!
3. Sell some assets
You may have some underutilised assets in your business. If that’s the case sell them. What’s the point of having a printer that you don’t use just gathering dust in the corner? A new business down the road could be in the market for such a thing – sell it; get some cash back on something you never use! You could also think about leasing underutilised assets.
4. Get a grip on your debts
Do be afraid to ask for money you are owed. Chase your debts up regularly and politely.
5. Understand when your customers pay their bills
Ask your clients when they pay their bills and incorporate this into your credit control function. Its a simple point that it often forgotten about by small businesses. Missing a cheque run may mean that you have to wait another month – and time it a commodity that many small businesses cannot afford!
If you are concerned about your cash flow and you’d like to discuss it further with me, please complete this form and I’ll be in touch!
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