Focusing on Your Cash Flow
There are few things more important to s small business than a robust cash flow. From wages to adding inventory or keeping your machines running, you can’t do a thing without steady income. It can take only one unlucky deal or a short quarter to run your limited finances off track. In the case that you experience an unfortunate setback in cash flow, here are four methods to get money flowing back to your business.
1. Check In with Accounts Receivable
2. Run a Promotion or PR Campaign
Simply bringing more customers to your door can increase your cash flow. By bringing attention to your business, you help to ensure an easier transition from stranger to customer. There are dozens of free marketing channels that can be utilized from Social Media to contacting bloggers and writers in your industry or area. Be aware of your margins, of course. It can be beneficial to break even on a few deals or units to drum up interest, but be careful not to give too large of a discount or give away too much of your product or service.
3. Adjust Your Payment Methods
It’s likely that many of your suppliers or servicers have credit and payment terms that can be extended or provide a discount for early or pre-payments. Immediate cash flow can be increased by extending your terms with your servicers to allow you to purchase more inventory or hire a necessary new employee. If you have enough short-term cash on hand, speak with your provider if they would consider a lower price for payment that exceeds the agreed upon terms. It’s also possible for you to encourage customers to pay more promptly by offering similar discounts.
4. Reimagine Your Asset Ownership
Many companies have outdated or mistakenly purchased equipment sitting around. A quick sale of assets can provide a boost to purchase more inventory or complete a project that has needed an injection of cash. With eBay and similar selling sites, it’s easy and cost-effective to remove equipment for a premium these days. Perhaps you have a specialty piece of equipment that many people need but can’t afford. You can lease time or use of your machinery to others and add a new revenue stream. Precious office or production space can also be leased to others if it isn’t being used.
OC Bookkeeping is here to help with all of your business and personal financial planning needs, no matter the stage or size of your company. So reach out and contact us and we’ll help guide you through the unpredictable future. As tax professionals, it’s our job to understand and follow the changes of any administration and will continue to work for your financial best interests. If you have tax questions or a tax debt you are unable to pay, our experienced tax settlement professionals are happy to discuss your tax resolution options free of charge. For more information about our services, visit us today at www.ocbookkeeping.com or call us at 877.889.6527. Our CPA’s, Enrolled Agents and other skilled accountants have a thorough understanding of tax law together with the experience necessary to know which tax settlement option will be the best fit for your specific set of circumstances.