As a small business owner you will no doubt be aware of the importance of cash flow to your business.
If we think of cash flow as the lifeblood of our business, then it is important to pay it the attention it deserves, which means not forgetting to collect, ask for payments or process them.
There are several ways you can ensure cash flow in your business is healthy and here are some of the best.
Process your payments as quickly as possible
Have you ever forgotten to send an invoice or been late asking your customer for money? Processing your payments quickly not only saves you time and ensures money reaches your bank quicker, it also gives you a better idea of the underlying health of your business.
Are your costs fixed or variable?
This is an important question to consider when you are running a small business. Most business costs will edge up over time, so you need to compensate for those added business expenses and raise prices accordingly.
Is it time to sell that old equipment?
Depending on your business type you may have equipment you no longer use or don’t plan on using any time soon. If there is value in it, then it may be possible to sell that equipment to raise funds and increase your cash flow.