It’s no secret that cash is vital to the success of any small business. Without proper management of your cash flow (the movement of cash into and out of your business), the everyday dealings of your business can slow down dramatically, or even stop cold in their tracks. It’s important to keep abreast of your current cash flow situation. Ask yourself: “How much cash do we have on hand right now?” and “How much cash do we need to keep operations running?” You may find that you need to increase your cashflow to close the gap between incoming cash and outgoing cash. Consider the following tips to speed up your cash inflow:
1. Increase Customer Orders
While it sounds a bit obvious, the best way to improve your cashflow is to increase your customer’s orders. Make sure that the entire purchasing experience is as easy and efficient as possible. Your website or storefront should be easy to navigate and understand so that customers know exactly what you are selling and how to make the purchase. Try to streamline the purchasing process as much as possible. A customer that cannot easily find a way to make a purchase with you, is a customer that will look elsewhere for what they would have bought with you!
2. Improve Billing
Similar to the previous tip, your billing system must be quick and efficient to minimize delays in incoming cashflow. Make sure your invoicing is done promptly – customers won’t pay until they receive an invoice!
3. Consider Your Available Credit
Many small businesses take out lines of credit that they do not use. Make sure that there are no dormancy policies on these credit lines – although ideally you would never need these accounts, having them available for a “rainy day” beats not having them available at all.
1. Increase Customer Orders
While it sounds a bit obvious, the best way to improve your cashflow is to increase your customer’s orders. Make sure that the entire purchasing experience is as easy and efficient as possible. Your website or storefront should be easy to navigate and understand so that customers know exactly what you are selling and how to make the purchase. Try to streamline the purchasing process as much as possible. A customer that cannot easily find a way to make a purchase with you, is a customer that will look elsewhere for what they would have bought with you!
2. Improve Billing
Similar to the previous tip, your billing system must be quick and efficient to minimize delays in incoming cashflow. Make sure your invoicing is done promptly – customers won’t pay until they receive an invoice!
3. Consider Your Available Credit
Many small businesses take out lines of credit that they do not use. Make sure that there are no dormancy policies on these credit lines – although ideally you would never need these accounts, having them available for a “rainy day” beats not having them available at all.
RSS Feed
