Keep your cash flow positive by growing sales, decreasing expenses and following these helpful tips to maintain a healthy foundation to ensure the steady growth of your business.
Your primary goal is to generate income as you need it for short term. The most obvious way(s) to go about this are: a small business loan, line of credit or a business credit card; based on whether or not you can afford the monthly payments. A high-interest savings account also proves an effective way to make sure a monetary security cushion is available when needed.
Setting up invoice reminders for your customers, as well as incentives for them to pay on time will serve you well in the long-run by helping you generate a steady income that you can expect and plan around. To reinforce that your customers pay on time, create a firm deadline for the payment of the invoices, and establish a penalty for late payments that is outlined in your contract.
Paying all your bills at once can pose the risk of not being able to pay creditors or suppliers on time if a surprise expense pops up. Spread out the payment of your bills and pay them by importance. Expenses like rent and payroll should take precedence and the rest should follow after, paid as close to their due dates as possible!
Increasing cash flow comes from creating marketing assets, business systems and processes. Closing more sales gets you more cash, and closing more sales means getting more customers to buy from you…. which means more marketing. Make sure to have a steady, realistic and effective budget set aside to market your business and plan to allocate more to your marketing budget in the months your business has slower traffic.