Cash flow is what runs the affairs of any business, it is a business’ lifeline and so it is imperative to keep it at a steady level. Paying for all kinds of expenses of a concern, especially its daily expenditure is all managed with the help of cash flow. This is why it is so important to keep the level of cash in a business running up and high, back-to-back.
- Inventory Check-Up
One of the things that you can do to up your business’ cash flow is to take a closer look at the inventory it is holding. It takes cash to buy inventory and by observing stockpiles, if you find there is stock which is not selling well, then you can decide to buy less of it. In its place you can instead decide to buy more of what’s selling, in the next purchase. This way you can receive more cash in the next cycle by buying and reselling more of what’s popular with customers.
- Encouraging Customers to Pay Electronically
This is a good way to increase business cash flow because if you encourage customers to make payments via debit or credit card, it has at least one benefit for both. For the customers, they don’t have to worry about cash if they don’t have any, they can simply swipe and walk away with their purchases. For your business, you can get the cash next day from the bank. So this customer convenience actually rebounds back to benefit your own business. This is because without accepting plastic money, you business would potentially make less amount of sales and hence cash flow, than it would with it.
- Use an Accounting Software
An accounting software can help matters for your business’ cash flow. This is because it is routine in business for debtors to not pay on-time, hence hurting your business cash flow level. A software can give you a notification if a payment from a debtor is overdue and you can therefore call him up, email him, or send someone to notify him. This way, you can know easily whichever customer is late in paying you so you can avoid further delays by notifying the customer to pay sooner.
- Come Up With Creative Deals
You can also create some creative deals for customers so that they are encouraged to buy goods which they otherwise might not because they get a discount that way. Offering customers exciting deals that are both to your business’ benefit as well as their benefit is a great way to boost cash flow. The customers would get a discount, high value for their money, and your business would get a good inbound stream of cash, and this cycle would be easily sustainable.