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Monday, March 30, 2020

Improving Business Cash Flow

When you own a business, things can go one of two ways. You can be running a business that is increasing in sales and your top line is growing and growing. The option being that you’re struggling and finding that you’re just about breaking even, if that. The latter can be common for small businesses, especially if there are issues with cash flow. When that happens it can mean that things aren’t running as efficiently as they usually are, and it can lead to problems. If you can’t pay staff, invoices, or other bills on time because of cash flow problems, then it does lead to big financial problems for the business. So looking to improve cash flow is a must. If you want to improve the cash flow of your business, then it is a good idea to start thinking about implementing some of these strategies; which will you try first?

Lease, Don’t Buy
The strategies that you choose to help your cash flow are going to vary business to business. But if you have a business that involves a lot of specialist equipment, then leasing can be a good way to help out with your cash flow, rather than buying. If you are still owing money on something that you have bought outright, then it will be trickier when you’re short on cash. If you’re only leasing, you can always cancel if need be. Leasing knows where you are at each month, as you’ll know what the lease payments will be each time.

Improve Your Inventory
If your business involves selling and having a range of products, then you can improve cash flow by checking exactly what you already have. There could be goods that you have that never sell, and they can be just sat there, taking up a lot of cash. You could sell onto a different business, or offer a discount on those items in particular (a great trick for seasonal items as well). Then you can clear space for more inventory that does sell, but generate some immediate cash.

Look for cheaper alternatives
There are many things that are a must for your business. For example, having web hosting for your website, as well as cloud storage for all of your data and business information. These things are needed, but you could be paying more for them than you really need to be. So instead, it could be a good idea to look for a cheap VPS to use instead of what you are currently using. There are a variety of different alternatives, depending on the areas that you are looking to save money on.

Increase Pricing
If you want to increase your pricing, then it can feel quite daunting. As a result, you can feel like you will lose customers if you start to charge more, and that could actually lead to a reduction in sales. It is a good idea to experiment with your pricing from time to time, though, in order to find the peak price that someone will pay for something. There isn’t a way to know what price people will pay, without taking a chance. 

Market Your Services
Another great thing you can do is market your services. If no one knows about what you have to offer it is highly unlikely that they will be able to make use of the service you provide. Be sure to use digital marketing as well as other traditional means to promote your business. It doesn't matter if you need restaurant, plumbing, construction, or even crypto PR, getting your name out there is vital. Do your research and see how your competitors are making a name for themselves and follow their strategy but add a personal touch for your unique needs.

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