As a growing business, there’s nothing more important during these initial stages than your cash flow. Your cash flow is at the very heart of your business – without it, everything else ceases to work at all. To keep track of your business’s cash flow you need to be vigilant and eager to find ways to increase your cash flow and delve deeper into why there could be a problem.
Sadly, it doesn’t take much to upset your careful financial balancing act, and after the slightest knock, you could find your business set back for a considerable amount of time while you figure out your next steps. Here we’ll take a look at how to successfully manage your business cash flow with these simple tips.
Focus on debt recovery
If you have clients or even vendors who owe you money and, despite many reminders are still yet to pay, then it could dramatically impact your company’s ability to move forward and gain back control of its cash flow. Business (or commercial) debt recovery is an effective way to get back what is owed to you, in a sensitive manner that anticipates retaining the client as a customer in the future. If done properly, debt collection doesn’t have to be scary and intrusive. You can still reclaim your money and debt from others without upsetting your clientele.
Make monitoring a daily task
As a business owner, you’re already spinning a lot of hypothetical plates, despite this, you now need to add regular cash flow monitoring to your list of daily tasks. Keeping on top of your accounts is much easier when you don’t have mountains of files and paper to get through. If possible, move everything online so it’s filed safely and securely, and so it’s easier to understand your current financial position.
Cut costs (brutally)
When you started your business, you may have jumped straight in with both feet and spent money on what you thought (at the time) were worthy investments. Insurances, monthly subscriptions, even phone and broadband rates. Cutting costs is much easier when you realise what you do and don’t need. Get rid of anything that you’re not using or no longer want, everything else could be made cheaper via haggling or searching for a better deal. Even your suppliers may be willing to give you a cheaper deal if you’re looking elsewhere.
Generate quick cash
Don’t be afraid to cash in anything you’re no longer using for a quick cash flow boost. Old monitors, laptops, even desks and chairs. Anything you don’t need, sell it and move on!
Make paying easier for customers
If your customer has to speak to you on the phone to make a payment, or they have to set up standing orders or pay their bills at their local bank or post office then it slows the payment process down. This means it takes longer for you to get your money. Look into moving all payment options online, and with the click of a button, you can streamline the entire process.