10 Tips for Increasing Cash Flow for Your Business:
1. Know your business cycle. When are your high and low demand times? This impacts your cash flow and planning ahead will avoid cash emergencies.
2. Build a cash reserve of three to six months. Save when business is booming.
3. Apply for credit when business is healthy. It’s easier to secure credit terms.
4. Feed your sales funnel. The more you put in the top of the funnel, the more that will come out the end of the funnel. Add to your sales funnel daily.
5. Look for additional revenue streams. Can you offer additional products or services as an upsell?
6. Inventory control. Buy in bulk if you can save money and you know you will use the inventory. Otherwise, think about costs vs. needs.
7. Plan big investments.
8. Avoid debt as much as possible. Ask for cash discounts if paying in full.
9. Increase your marketing activities and track your sales.
10. Review your financials monthly and make necessary adjustments.
Implement as many of these strategies as possible and you are on your way to keeping your cash flow positive!
(And be sure to download our FREE Basic Business Budgeting Tips