Want to improve cash flow for your business, but don’t know where to start? Well, we have two things to tell you.
First: You’re not alone. Most businesses struggle with cash flow at some point or another, especially in the early days. In fact, insufficient cash flow is the most common reason why startups and small businesses fail.
Second: Don’t ignore the problem; take action. Making just a few small adjustments to your business operations can have a huge impact on your cash flow. It just takes some dedication and good old-fashioned discipline on your part.
To help you get started, we’ve put together a list of five tips to help you improve the cash flow for your business. Be sure to also check out our one-minute video below.
Five Ways to Improve Cash Flow
1. Clean up your financial records
How can you expect to maintain steady cash flow if your books are a big ole mess? Having accurate, up-to-date records will help you know exactly how much money is going in and out of your business at all times.
2. Control your spending
There are a lot of expenses that come along with getting a business up and running, but that’s no excuse for a shopping spree you can’t afford. Create a budget for your business and commit to sticking to it (and get your staff on board, too). For some ideas on how to cut down on spending, be sure to check out: 5 Ways to Cut Costs for Your Small Business.
3. Establish clear payment policies
If your clients don’t pay on time (or at all), your business will inevitably suffer (not to mention you might want to get new clients). That’s why it’s a good idea to set some ground rules around payments and communicate them clearly to your clients before doing business with them. You should also consider adopting digital payment tools like Bill.com to help streamline your payment process and make it easier for your clients to pay you on time.
4. Plan ahead and prepare for the unexpected.
Knowing where your business is headed and prepare for potential pitfalls will help to prevent a major catastrophe when a financial emergency actually hits.
5. Get expert help
Face it: you simply can’t do everything yourself. Sometimes hiring a qualified expert to help out in areas that fall outside of your skillset will save you more money in the long run.
Whatever you do, don’t ignore the problem
Cash flow for your business should never come down to a guessing game. If you don’t feel you have a solid handle on it internally, don’t wait until it becomes a major problem to do something about it.
Be sure to watch our one-minute video summary on how to improve your cash flow below. Like this post or have questions? We’d love to hear from you here or in the comments below!