Mastering cash flow is vital for every single business out there. It is always important to get more cash, especially when flow problems appear. The good news is there are always different things that can be done. However, the common ways in which you learn how to make money online will not really work fine for businesses. You want to always control finances, knowing the money that goes out and the money that goes in.
Always Know Numbers
Especially when some problems appear you need to know numbers. Daily checks are necessary and should include expenses, bank accounts, receivables, inbound leads, traffic, real budget and so on. The problem is that when you are not aware of the numbers you will not know where you really are at. Mastering cash flow is a really big problem for many businesses, especially the small ones.
You do not always need to get more money for the business. In many situations the best possible decision is to cut costs. You want to be frugal with finances and be brutal about it. As a simple example, it is possible that the business subscribed to some services without them actually being used now. Check your finances and be sure that you always control everything, especially your costs. You will be surprised to see how many costs can be eliminated.
Tough Late Payment Terms
Problem clients have to be eliminated from the equation. They are simply cash flow problems and this rarely ever changes. A solution is to introduce some tough late payment terms. When clients do not pay on time for a number of months or if the cards are often declined, a 6 months payment plan would be enforced. This means you do not have to chase clients for amounts that are too small.
Create Emergency Funds To Use As Backups
A really good idea is to establish an emergency fund that would be used as backup. Even a few thousands of dollars can help so much more than what many expect, especially when faced with financial problems. The cash that you keep for emergency purposes should be stored in the same place. Small amounts can be saved every single week.
As an extra tip, be sure you set up special business accounts for different purposes, including taxes, daily trades, emergencies, savings and marketing. Set up an established system for savings. As an example, you can use 3% of the money you get for the business savings account.
Look Outside The Business
You can always change suppliers, hardware, software, hosting, offices and practically everything related to the business. In many cases we see businesses sticking to the exact same setup for really long periods of time. Analyzing all of the things related to that can lead to finding different solutions that are cheaper for the company. You can even move your office to another city and find some free rent options if you can. There are always some opportunities available but you have to look for them.