Success

Advice

  

Fast and Simple Ways to
Increase Your Business Cash Flow Today!

  

Sustainable Profit Growth

80/20 Principle

    

A business cannot grow without a stable cash flow. You cannot really pay your bills if you do not have enough cash in the bank. These expenses include:

● Rent.
● Energy bills.
● Employee salaries etc.

Being late on these bills can cause havoc. For example, you run the risk of getting kicked out of your premises if you do not pay the rent on time. Similarly, you can lose electricity if your energy bills are not paid on time.

This can put a business in hot water. In fact, poor cash flow is the #1 cause behind businesses shutting down. This is why businesses need to look for ways to increase cash flow.

While a business should try to reduce expenses and increase revenue, i.e: the amount of cash saved, this is easier said than done.

It is not very easy to increase revenue within a chosen revenue model, but with proper care, you can definitely improve your business’ cash flow.

Without much ado, let’s have a look at some ways to increase cash flow of your business:

 

 

 

 

An Incentive and Late Payment Program

You must be well aware of your invoice system and ensure that all invoices are cleared on time. Late invoices can disrupt your financial system and cause poor cash flow.

One way to reduce this customer behavior is to offer small incentives to customers who pay on time.

Develop a flexible pricing system. Discounts can be offered to customers who pay on or before time so that more and more customers pay you quickly. This way you will always have a good amount of cash in hand to pay your expenses.

In addition to this, you can levy a surcharge on customers who pay you late to prevent them from making late payments. However, make sure to draw such a plan with care as it may upset some of your customers.

=> 7 Routes To High Profits

 

 

Take Business Loans

There are many business owners who tend to shy away from getting a business loan to fulfill their business needs for one reason or the other. This is nothing but a big mistake as loans can help a business come out of financial trouble.

There are many kinds of loans out there, most importantly secured and unsecured loans. Secured loans are risky as you need collateral to get such loans approved. On the other hand, there are unsecured loans that require no collateral and are typically given away instantly.

Business loans can vary from $1,000 to $500,000. The amount of loan sanctioned depends on several factors including the type of loan you apply for and the amount of money you need.

Loans are for a specific period of time and you have to pay interest that is charged monthly, quarterly or yearly, based on your terms. Make sure to read the terms carefully so that there are no issues later on.

Moreover, look for a loan that is easy to pay so that you do not have any trouble in the future. Also, keep the interest rate as low as possible as it can be a trouble to pay the interest. Lastly, remember that loans are not a permanent solution and you should look for other ways to meet your financial requirements.

 

 

Cut Costs

Every action has an equal and opposite reaction. In case of cutting costs, the reaction is an increased cash flow. When a business succeeds at cutting expenses, they are actually saving money which can be put to better use.

Look out for expenses that can be cut off. If you have extra space, move to a smaller office or rent out the section that you do not need. Shift to services, processes and equipment that save you money.

These are various ways that will help you increase the cash flow of your business and run it without any issues. For instance, many SMEs managed to cut costs remarkably by making radical improvements, adopting the continuous improvement mindset (Kaizen mindset), and shifting to lean production systems.  =>  Examples  =>  US firms | Indian firm

=> Healthy Cash Flow