subject: Improving Business Cash Flow [print this page] Maintaining a steady cash flow is the pulse of every business, large or small. When bills are due, it can be very overwhelming and stressful to realize that funds are limited. This is often the result of easily correctable mistakes like poor organization or an irregular billing system, for example. There are some incredibly simple ways to improve business cash flow and ensure a sense of stability and a brighter future for your business.
Billing clients and customers quickly and accurately will greatly improve the business's readily available funds. Do not wait until contract completion or due dates to send out invoices or let them get pushed aside to be dealt with whenever you get around to it. Set a firm, consistent billing system in place and stick with it. A friendly reminder phone call a week or so after billing to make sure it was received and that there are no errors or questions will help you collect timely payments and keep cash flow moving steadily.
Implementing incentives provides encouragement for quick payment. For example, offering a discount of a percent or two off of the balance of the bill if paid off in the next ten days or so makes clients more likely to go ahead and pay. They save a little money, you get your money faster, and everyone is happy.
Actively working on and maintaining good customer relations is a way of keeping cash flow up that is often overlooked. It makes sense, though, if you think about it. Customers and clients are much more likely to keep up to date on their business transactions with you if they like you and the way that you run things than with a business owner they never hear from and/or do not particularly care for. This may also entail working with a customer during troublesome times and collecting only a partial payment. It may seem undesirable, but it is better than receiving no payment at all.
Inventory shrinkage is a good way to cut down on inventory costs as well as prevent the waste and loss of products. You may be offering fewer options than before, but as long as they are good options it probably will not be a big deal. Making sure that you are offering only products and services of sound quality will result in higher inventory efficiency and customer satisfaction, and less overall waste.
These are just a few of the numerous ways that you can improve your business's cash flow. Look for places where your business could use a little more organization or prompt action and start there. Make use of the many resources out there offering constructive advice and you will see a radical improvement in your cash flow.
