Review Your Expenses
Review your expenses periodically. Are you really getting the best possible deals from your suppliers? You’ll never know unless you check around. While it’s useful to be able to build a relationship with a particular supplier, it’s also helpful to know what other deals are out there. Doing so will allow you to ask your current supplier to match or better it. If they won’t, you can always consider taking away your business. All businesses have to remain competitive, and you can work that to your advantage.
Of course, if you’ll need to vet new companies before switching. After all, saving a bit of money will be worthless if they can’t deliver on time, or if they’re often out of stock.
Push for Easy Win Sales
What kind of products or services can you add on as a quick upgrade? How can you promote easy sales? Say, for example, that you produce nail polish. You could source emery boards at a reasonable price and make a profit on selling those with your product.
It’s not going to be a huge cost or inconvenience for you. For the client, though, it adds value. And, because it’s an inexpensive product that is related to what you’re already selling, it’s an easy sell for you.
Consider running promotional campaigns and little extras that won’t cost you a lot of time and money. These are ways to quickly boost your cashflow.
Move Upfront Expenses to Subscriptions
You can decrease monthly expenses by switching to subscriptions. Take Ezybiz, for example. They offer a range of subscription packages that allow you to save money on normal business tasks.
They can, for example, assist you with getting work visas, accounting, and basic administrative tasks. Handing these duties over means that you don’t have to hire someone in-house. And, because you’re paying a monthly subscription fee, you’re getting a better rate than you would by hiring a company on an ad-hoc basis.
Automate Invoice Payment Reminders
Most company accounting programs nowadays have functions that send automatic payment reminders to clients. These notifications can even include links that allow clients to make payments quickly and easily.
More importantly, the reminders go out automatically at the correct intervals. Automating this simple accounting task means that you don’t have to rely on a staff member finding the time to do it. So, if your accounts clerk is out sick, it’s not going to throw off your billing schedule.
Negotiate Credit Terms Where Suitable
Whenever possible, try to negotiate longer payment terms. Most companies will offer clients at least 30-days of interest-free credit, so why not take advantage? It gives you a bit of a breather before you need to make a payment—without incurring interest charges.
It might also make sense to finance larger purchases that would increase output. The key, though, is to consider the cost-to-benefit ratio. A new machine that will allow you to increase productivity would be a beneficial asset.
Ask yourself how much extra money that new asset is going to bring in. Is the expense something that you should consider right now?
Wrapping it Up
Managing your cash flow can be a delicate balancing act. With the tips outlined above, you know how to begin—and be sure to research further on other creative ways to keep your cash flow more consisten