How To Improve Cash Flow In Small Business
You’re finally making money in your business, and you’re ready to take things to the next level. You know that cash flow is the lifeblood of a healthy business, but if you’re entirely honest with yourself, you’re not exactly sure what you need to do to keep the money flowing consistently.
Hang in tight because in this online business clinic episode, the place to build a profitable business, we will share with you our smart strategies on how you can keep that cash flowing.
Let’s dive in.
1. Get a firm handle along with your cash flow investment.
Look at what is coming in and out of your business. You need to speed up the cash coming into your business and slow down the cash going out of your business. Have everything mapped out by writing down exactly what’s coming in from your customers.
Check-in with your customers to be sure they are going to be able to pay for that business. Make sure money is coming in as planned. Do the same for the cash going out of your business.
2. Have an accounting software tool to stay on track
You need to track your available cash and the expected inflow and outflow of cash in your business, but it can be time-consuming for you, especially if you’re a busy business owner.
We recommend online QuickBooks, as they are intuitive and easy to use. You’re able to access your data anywhere you have internet access. Get somebody to do it for you. It’s okay if you can do for yourself when you’re starting, but have somebody teach you to get the foundation right.
You can also seek the services of a bookkeeper or a CFO (Chief Financial Officer) to help you manage your finances and grow your business strategically.
3. Increase the price of goods or services
Reevaluate your goods and services’ pricing to check if you’re selling for too little or more.
It may be worrying about increasing the price of whatever goods or services you’re offering, and it may raise a concern about your sales suffering if you raise your price too much.
However, it would be best to test and find out what the market can bear, rather than having preconceived conclusions.