Your company’s cash flow is integral to its fiscal health- and the prosperity and longevity of your business. The key to maintaining a healthy cash flow during tough times is to monitor and watch it. An estimate of what your business brings in and what goes out is closely connected to your cash flow.
Here are some cash flow tips to help your company thrive:
Bill Promptly
Never hesitate to send invoices and bills for services or goods. You cannot maintain a healthy cash flow if all your money is tied up in unpaid- even, unbilled- invoices and receivables.
Adjust Inventory
Always watch and adjust your inventory based on sales trends. That is if something is not selling- move it. Clear space for new products and discount the items that are not selling to incentivize your patrons. Who doesn’t love a sale?
Lease Equipment
Buying equipment for a business or brand can be costly- do you have the money available? Instead, consider leasing what you need. It may not be cheaper over the long term, but it may free up cash flow to help you get through tough times, keeping your company fiscally healthy.
Borrow Funds
Borrow money when business is good, to help when times are not as good later. Open a business line of credit for when business is lean, or times are rough. This makes a great rainy-day fund while building a positive credit history for your business- if you make your loan payments on time.
Curb Costs
Always look for ways to curb costs without compromising the quality of what your business offers. You may find gaps or cracks in your operations that benefit from modifications to make them more efficient. Check vendors to compare the pricing of the things you need and outsource tasks when viable.
Adopt Technology
Consider adopting technology that can simplify and streamline your operations. While it may require an initial investment, it may increase efficiency and improve productivity over time, raising revenues.
When you need a cash infusion to keep your company healthy, talk to the lenders at Means Commercial Capital to find out more about alternative financing options.