TRYING to stay afloat in your business often feels like you’re swimming against a constant current of ins and outs.
If you do not have a proper handle on your capital and cash flow, then there is no real way of knowing where your company will be in a year.
It is all very daunting stuff, and is enough to cripple many small businesses if left unchecked.
Thankfully, there is a saving grace to be found for your business, provided you put your efforts into the right places.
Here are 3 Simple Insights into what it takes to get on top of your capital and start treating your cash flow like royalty.
1. Plan Ahead
From the get go, you should be keeping meticulous, accurate records for all of your accounting and finances. This will be the information required to project your finances for the future. Use your monthly statements and balances to figure out what to expect in the coming months.
2. Look to Lend
One of the most important relationships to get right early on for small businesses is with your lenders. Try to establish these connections before you need to use them for finance, so you can create a solid lending history. When the time comes for you to acquire a loan that you need, that history can be your golden ticket to securing some funding.
3. Invoice early
You do the job on time, so preparing invoices early will ensure that you clear your debt faster. Most businesses are not invoicing as soon as they can and therefore are unable to recover debts when they are due.
This is the most basic example of how cash is the bloodline of your business – (work done + getting paid on time + paying debt on time = less stress).
If your cash is already tight, there might be an unexpected invent that immediately needs attention but you won’t have the capital to get out of it. Invoicing early is a simple and quick daily task that you can do to avoid long term pitfalls.
These tips are just starting points for you to better your businesses overall cash flow management. The driving factor behind the importance of your cash flow is two-fold.
Firstly: Having finances opens up doors for you to lend money and grow.
Secondly: Capital is the lifeblood of business and in the corporate world cash is king. Treat your cash flow like royalty.
You are doing a business to earn money and ultimately have more time for yourself and your family. But if you find that your revenue is stagnant, taken a dip or just something that you don’t have time to handle, let us guide you through our proven 4-It System so you can grow your business with half the stress. 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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