If you are a shrewd business owner you will know the importance of a positive cash flow and ready money availability for possible contingencies. If you are able to maintain a regular supply of cash coming into your business, you can plan for short term goals in a composed frame of mind. Business growth occurs with adequate cash flows, but it needs strategy to ensure that. Here are some techniques which can effectively help to improve your cash flow and business finance.
Be Very Alert about collections
Remember that you are a caomp0nay and not a bank. So do go overboard when offering credit period to a client. When you offer credit you are actually financing the purchases of the client. As a responsible business owner, you must make sure that you collect this money in a timely manner. This constitutes money which should be flowing through your business. Get this cash into your business as fast as possible. Send reminders, make follow up calls and collect the payment. Money stuck somewhere seriously affects business finance and cash flow.
Ease out Bad Clients
There are some clients who consume all your time, your human resources and also test your patience. If any of your clients fall under this category, just ease them out. By cutting loose you will be saving resources ad also getting more time to focus on your good clients. It not only makes your clients happy, but you will be able to increase your sales by giving them improved service and greater satisfaction.
There are two ways in which you can make profits. One is by increasing your selling price and the other is by cutting down the making costs of goods sold. If you eliminate waste in your processes and production, you will become more efficient and can sell your goods at the same price and still growth in business finance and see profits.
Package Your Services
You can devise ways to sell your products as a package, and include additional services and charge clients for the whole package. This will be pretty well accepted by your existing clients who will perceive it as adding greater value. You can also introduce a system where you bill the client a set amount each month. This allows your client to budget better and you get a regular stream of money flowing into your business. The benefit in this works both ways. You become more efficient when you are billing for a flat fee rather than for an “as needed basis”.
Take up a subcontract
Find out who are major players in your industry and offer to help them ease their work load by taking some of it. You not only will get a stream of clients to service but will also not have to do any sales or marketing because the big company is doing for you. A sure win win for both companies as business finance improves.
Money or cash flow is the lifeblood of any company and every step should be taken to ensure that money keeps flowing in to operate the business profitably. Packaging services, taking up sub contracts, preventing wastage, avoiding bad clients and collecting payments on time will ensure that cash never falls short.