We all know how critical it is to manage the flow of cash in and out of your business. Here is a short list of 5 things that can help you improve your cash flow in the small time.
1. Invoice perfectly and on time
Everyone makes mistakes – we are only human after all. But, the fewest mistakes on one of your invoices provide an explanation to delay payment. So make sure that all your invoices are precise.
2. Think of valuable 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 look 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 resources
You may have some underutilized resources in your business. If that’s the case sell them. What’s the point of having a copier 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 – sells 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 scared to ask for money you are still to pay. Track your debts up regularly and graciously.
5. Understand when your customers pay their bills
Ask your customers when they pay their bills and include this into your credit manage role. It’s a simple point that it often onwards about by small businesses. Missing a cheque run may mean that you have to wait another month – and time it a service that many small businesses cannot afford!