GETTING on top of your cash flow management is critical to success for any business, small or large.
Even if you are in a situation where you have been a little lazy with your attitude towards cash flow, this guide can offer up some quick suggestions that can help.
• Source business line of credit early
Building a good relationship with lenders is a great way to get your foot in the door ahead of time.
If you get a line of credit early, not only do you have some flexible income for your business, but you can prove your worth to lenders for any future loans.
• Lease what you can
Buying new equipment, cars, technology and other expenses can end up eating a healthy chunk out of your capital.
It is an easy mistake to make, but buying all of these things outright leaves your cash flow seriously vulnerable.
A more sensible approach especially for a growing business, is to lease what you can. From a cash flow management perspective, this is useful because you can expense the lease costs on your taxes.
• Look into mobile payment solutions
If your business offers a service, there is a new wave of mobile applications available that completely revolutionise how you can get paid.
These apps, such as Square and Paypal streamline the entire payment process and automates a lot of the back-end processes for you. This boils down to real-time transactions that appear directly into your business account.
• Delay supplier payments
Vendors tend to be flexible and understanding with the plights of a stressed out business. So, provided there is no late fees or potential risk to the business relationship, hold off on paying your suppliers until the actual due date.
• Get a business credit card
Getting your hands on a business credit card provides you with a host of rewards and benefits for you to utilise.
You can even use this to help out when times are a little tough financially. Business credit cards are also very good for tracking expenses as they categorise all of your purchases for you.
There is no way around cash flow management—you cannot be successful and be blind to your finances. However, these tips can definitely help make your life easier when handling your cash flow.
Your cash must never get out of hand as this will spill over to all the other functions in your business. Learn how to manage your cash flow by minimising unnecessary expenses and cut out debt through our proven 4-It System and grow your business in less time. Click here for your FREE strategy call now. Limited bookings available.
Rob Kropp – The Profit Coach
About the 4It System for your business and life: The Make It, Manage It, Keep It, Grow It™ (4-It System) will help you structure your business in a way to make leveraged profit. Manage excess earnings so you can scale effectively. Keep more money in your top pocket. Then grow it, so you can play a much BIGGER game than just the business. Your wealth will expand as your financial freedom turns from a dream into a reality through building a business, living a life and leaving a legacy.
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