There are a number of reasons why you may need to boost your business’s cash flow; to meet increased orders, to expand your operations or just to pay some bills. There are also a number of ways you can go about achieving this.
Here are 5 ways in which you may be able to boost your business’s cash flow.
Product Pricing
Increasing the margins you achieve from the sale of goods or products is one simple way to improve your company’s cash flow and even if it’s only by a few percent – every little bit helps.
Before you act, do your research and make sure this will sit comfortably amongst your competitor’s prices, because if not, it will have the opposite effect to the one you are hoping for.
Speed Up the Receipt of Payments
Waiting for up to 90 days to receive payments can be a nightmare and can really disrupt your business’s cash flow – there are, however, actions you can take to speed things up.
Encouraging customers to pay by credit or debit card at the point of purchase is an obvious way to speed up payments, but there are some less obvious strategies. For example, you could use MarketInvoice to get an advance on revenue from invoices that are outstanding.
Sometimes being a little more pro-active can make all the difference.
Invest Surplus Capital
Surplus capital, that is not working for you and your business, should never be left idle and investing that capital can be an easy way to boost the company’s cash flow.
Investment opportunities are wide-ranging and if you are not going to invest in your own company, then it may be a good idea to seek the advice of an expert who can put forward some ideas and explain the exposure to risk for each option.
Reassess Long-Term Contracts
It is common, when dealing with long-term contracts, for companies to just let them keep ticking over. However, periodically reassessing them and where needed renegotiating their terms is vital.
Making sure you are not undercharging for goods or services will keep your cash flow in good health by giving it a little boost once in a while.
Sales and Promotions
For a short-term solution and a quick boost to your cash flow, orchestrate some type of promotion. Sales and offers can make a huge difference to weekly or monthly revenues when executed well.
Boosting your business’s cash flow should be seen as an opportunity and not a cause for stress and integrating the practice into your business schedule regularly can really pay off.
