8 tips to get business cash
Cash flow management is very essential to keep business running. Having a positive cash flow will ensure revenue generation. You can follow few simple tips to regulate your cash flow. These will help you maintain the money flow inwards rather than outwards.
- Prompt Invoicing:
Make sure to intimate your customers with the invoices on time. Proper scheduling of the invoices should be done. The invoices should include payment dates and figures, for customer awareness. Quick actions on invoicing will enable faster payments.
- Timely payment to suppliers:
Finding out maximum time to pay your suppliers will relieve you from interest rates. This is a healthy business practice and your suppliers will love to build a longer relationship with you. Keep the invoices ready.
- Discounts on trading:
A popular technique to manage faster cash inflows is to offer discounts to customers on timely payments. Such trading discounts of mere 1 to 2 per cent have effectively no loss to you. Rather the timely payments will help you get hold of the money faster and to use it towards your benefit.
- Expense cut off:
Understanding where to put money is the key to cash flow management. Ensure to hold back expenses that you are not sure about and rather invest on something that will bring in profit. Another way of managing money could be like a biweekly payment instead of a weekly payment.
- Inventory management:
Inventory management is essential to relieve any money from it. Make sure to replace with new inventory once it comes down to the bare minimum. Relieving money from inventory will help you put it to other uses.
- Leasing over buying:
It may at first seem to be costlier to lease stuff, however, at the initial stages, sparing money by leasing may help in running out other business activities. Such monetary planning saves money and opens better avenues for money investment.
- Split your suppliers:
It may be a good practice to buy stuff from different places instead of one. This will entail market research. You get the benefit of better products from each supplier or may be better service too. You also build relationship with multiple suppliers.
- Staff Management:
Initial hiring is very critical. You need to be sure that you hire the right people who will drive your business. Be sure that hiring more staff is relieving you for other business critical work.