by More than anything in business, a small-business owner needs to stay on top of their cash flow. Because at the end of the day, staying in the black is where you are going to get your profit from, not when you are paying back loans or lenders. So if you are starting out and are unsure about ho to monitor, track, or deal with cash flow issues, then this post is for you. The aim is to always be making more than you are spending, even if you have money to pay back.
Monitor Regularly
Getting to the end of the month and only then taking a look at your accounts isn’t going to be a good formula for success. You need to be on top of this at least weekly, if not daily. You can monitor payments that have been made, chase any outstanding invoices, and generate reports to monitor how things are going. The people that stay on top of their accounts are the ones that will be more successful. Simple.
Check Business Lines of Credit
There are many options for you these days when it comes to getting a line of credit for your business. Hopefully, when planned well, you won’t need one. But if people are late to pay you, it doesn’t mean that you can’t pay your staff, for example. So knowing what line of credit route you will go down, before you have to go down it, is a good idea. You could find a loan that would be suitable, for example. You can even use PayPal as a way to keep your cash flow going these days. If you have a business account you can use apply to use it like a banking overdraft. So with a little time and research, there are options open to you.
Cut Costs
If when you monitor your records regularly, you are going into the red more often than not, then it can be a good idea to look for ways to cut costs in your business. What costs you the most? For most businesses, it is staff that can cost a lot, and all of the associated costs of that. So it could be worth using a site like peopleperhour.com to find freelance workers, rather than hiring any new full-time staff members.
Lease Equipment
Depending on what your business is, you may need some equipment or vehicles to get the job done. But buying expensive equipment can be just that, expensive. So to help your business grow, it can be a good idea to look for ways to boost your business by leasing equipment instead of buying it. When you buy it, you won’t use it for 90% of the time, but will still be paying it off the whole time. So leasing makes much more sense as you only pay for when you need to use it.
What works for you to ensure good cash flow in your business?
