Cash flow is possibly one of the most important aspects of owning your own business. Without cash flow, keeping your business afloat would be impossible. Utilize these five tips to help maximize your business’ cash flow:
- Consider adjusting your pricing of certain products—Maybe you’re selling your products for too little or perhaps you’re selling products for too much, resulting in less sales… Examine your pricing of individual products and see if there is any room for modifications.
- Re-evaluate the way that you purchase inventory—It may be a wise idea to try cutting back the amount of inventory that you keep in stock. The less additional stock you keep on-hand, the less cash you have tied up in the inventory.
- Keep up-to-date equipment—Old equipment can get costly to repair and will not be worth as much as new equipment if you ever choose to sell it. Consider leasing your equipment to stay current with the latest technology.
- Look into hiring an accountant—An accountant may be able to help you plan for issues that you may not have considered and may also be able to give you financial insight into areas that you have overlooked.
- Make sure you get paid—Know exactly who owes you what and make sure to call anyone who is past due with payments… don’t wait until the last minute to inquire about late payments. CB&S Bank also has an excellent Cash Flow Calculator to help you meet your business goals!