Branding Creatively provides world-class solutions and top-notch development all in a fun, fast-paced environment. Reach out today for more info!
Boost Your Small Business’s Cash Flow With These Moves
Running a business often means owners have a lot on their plates, and it can be hard to keep up with the details when your days are so full. Staying on top of your financial wellness, however, is a crucial part of making sure your business is on the right track. It’s not enough to know you’re doing well; you also have to plan for those months when things slow down, or for emergencies that require a bit of padding in savings.
Maintaining a healthy cash flow can help you put money back for hard times and will give you peace of mind even when business is going well. If you’re ready to set up accounting software to keep track of expenses, let Branding Creatively help you make the most of it. You can also look for help when it comes to monitoring your cash flow, which can be a time-consuming job.
Hire a business consultant
As much as you may want to try and handle your entire business yourself, it’s sometimes not possible to juggle everything at once. Remember that it’s okay to ask for help and consider looking for a business consultant who can assist with keeping an eye on your books. Not only will this free up quite a bit of your time, you’ll get the benefit of having a professional keep track of your income and expenses so that nothing slips through the cracks. Consultants’ fees vary according to their expertise level and the specific job. Check out a job board and read reviews from their clients so you can hire the best person for your needs.
Create and a budget (and stick to it)
One tried-and-true way to reduce costs and increase profitability is to work within a budget. Using the same principles for your personal life may even help to reduce your personal expenses so you can put more of your own money into the business. This strategy could include downsizing or moving into an apartment, an option that can save you moneyif you’re moving out of a house you’ve mortgaged, as MarketWatch explains. Savings come by way of not having to pay for items the typical homeowner is obligated to pay, such as property taxes and major repairs to the property. You have plenty of apartments in Denver to choose from – in fact, more than 4,600 are currently available for renting.
Get rid of things you no longer need
While keeping track of your finances is crucial, it’s also important to keep an eye on your cash reserves. Need an infusion? Consider selling inventory, supplies, or equipment you no longer need at a reduced price. You may not be able to get the full amount you paid for it, but it’s much better to earn some money on items that would otherwise be sitting in your storeroom. Look for resale apps that can be of help, or consider selling on social media platforms.
Take care of those invoices
Ordermentum notes that another essential for healthy cash flow is making sure your customers pay their bills on time. If you have a stack of unpaid invoices sitting around, take the time to go through them and reach out to those customers personally. Offer to allow them to pay without a penalty this time, and consider instituting a late fee for the future. Give them several payment options, including credit cards and money transfer services, so they can pay in whatever way they’re comfortable, and send invoices early so they have plenty of time to make payment arrangements. Make sure you have your customers’ email addresses so you can send payment reminders, and consider utilizing an incentive program of some kind to ensure they pay on time.
Consider a line of credit
If you haven’t already opened a business credit card, consider doing so now to cushion your cash flow a bit. Even when your customers have all paid on time, every business has a few slow times now and then, and having good credit will allow you to take care of emergencies or freshen up your inventory when business isn’t booming. Make sure your credit score is in good shape before applying to avoid rejection, read the terms for various cards carefully, and keep the credit line small at first so you can manage your debt levels.
Maintaining healthy cash flow for your business can be stressful, but with a little help from professional services and freelancers, you can save both time and money. Keep an eye on your income and expenses throughout the year to ensure that things are on the right track.
Photo via Pexels
