Small business owners struggle with one thing consistently – cash flow. And cash is the life blood of your business. Without good cash flow management skills your business will suffer because you will miss due dates on bills and you won’t be able to make payroll. And as a result you will be completely stressed out.
But you can’t let the stress take you out of the game. You have to buckle down and find ways to increase your cash flow either temporary or permanently. And here are five quick ways that can help you do just that.
Offer customer incentives – Offer customers a discount to pay an invoice early. Why wait around for your customer to pay you. Take control and offer them a discount for paying you earlier than the due date. Your vendors do it for you, so why not do it for your customers? Nothing too big of a discount, maybe 5% – 10%. Hey it’s worth the cost to get your money faster.
Pay bills on time to avoid late payment fees – Implement a system that helps you pay bills on time. Paying bills late only causes more cash to flow out of your business. You may think you are saving money by holding off on to the payment but you’re not. More than likely the terms of your agreement with the vendor states that late payments will be assessed a late payment fee. So ask yourself – was it worth it?
Bundle your services – Group products or services together that clients often buy together to increase your sales and your cash flow. More and more companies are doing what Amazon does best; which is offering your something to compliment what you are already purchasing. Take a look at what you already offer. What do people often buy together. How can you offer them already together at a price that still yields you a profit but also gives them value?
Sales promotion – Every month there is a holiday or theme. Can you offer promotion deals for your products and services around each one? You would be surprised at the things people sell in conjunction with a holiday or theme. You have to think outside the box for this one because some holidays will be easier than others. Statistics show that people buy more in relation to an event. Play on their thoughts and feelings. Time to get creative.
Require deposits for large contracts – Remember you have costs to pay before a project is complete, require a deposit to get you going. This deposit allows you to keep the doors open and the lights on and pay for any costs that are incurred at the start of the project. Plus it shows the commitment level of the customer. I mean how many times have we heard “Let me think about it for a couple of days and I will call you a then.” Don’t let that sale walk out the door.
What tips do you have to help increase cash flow? Grab five more of our cash flow tips here.
Sherrell T Martin’s business, Empower 2 Thrive, LLC, is a financial management and business consulting practice specializing in helping clients increase their bottom line. She strives to empower business owners and entrepreneurs to thrive financially in life and business by gaining financial control and creating wealth and legacy. Sherrell helps business owners and entrepreneurs who struggle with business and financial organization, learn how to establish systems that will allow them to create, build and maintain a financially thriving business. You can view her profile HERE.