3 Ways to Increase Cash Flow in Your Business
Don’t be fooled—even profitable businesses can encounter cash flow issues. According to a U.S. Bank study, 82 percent of small business failures are the result of poor cash flow.
The concept of bringing in more money than your business is spending sounds simple enough. However, there’s more to it than that. Cash flow is the lifeblood of your business. Earning revenue just isn’t enough to successfully grow and run a business.
If you’re worried that your cash flow is in the red, these tips can help you gradually increase your cash reserves.
Get clients to sign on for ACH withdrawals or credit card payments.
If you do this every time you onboard a new client, you’ll save yourself the time and stress of chasing down payments. And you’ll know you have cash coming in to pay bills or run payroll.
No more resending invoices and scrambling to pay bills or employees!
Review your expenses.
As the saying goes, “A penny saved is a penny earned.” Take a deep dive into your expenses to determine where your money is going and where you might save—get a quote for insurance, see if you can negotiate with your landlord to lower your rent, shop around for commodity items.
Companies like Schooley Mitchell will help you find savings by negotiating lower costs on things like shipping, phone service, and other services. The cost? A percentage of the money you save. It’s a win-win.
Review client fees.
When was your last rate increase? Are you providing more services and value than when you started the partnership? Have your expenses increased?
Even increasing your client fees by a small percentage can provide much-needed cash in the bank. And often, many clients already anticipate these annual increases.
Know when it’s time to ask for help.
Managing your business finances isn’t a one-person job. You need a team of experts who are also invested in the success of your business.
We’d love to talk and learn more about your needs. Reach out and schedule a consultation!