Even a good market, cash flow issues are bad enough. In a poor economy, though, they may be the kiss of death.

If you’re having trouble coming up with money to cover your bills on time because of the crisis, these four fast fixes for cash flow issues should help.

  1. Cut Out Unnecessary Business Costs

Get your bank accounts out. Let your credit card bills out of the drawer. What are some of the costs that you’ve noticed?

Look at regular monthly costs that you should slash to get the best return on investment.

Every company usually has several business tool subscriptions, email subscriptions, and app subscriptions.

Every company usually has several business tool subscriptions, email subscriptions, and app subscriptions.

And I’m willing to bet that at least 5% to 15% of them are no longer in use or fulfilling their original intent. Identify them and cancel them as soon as possible.

This simple exercise will boost your cash flow and save you thousands of dollars per year.

Another simple way to save money is to swap costly facilities with less expensive ones. Replace your landline phone with a paying Skype account, for example. Alternatively, find a free open source alternative to a paying solution.

You’ll be surprised by how many fine, inexpensive programmes are available until you start looking. (If you need assistance getting started, simply ask your social network.)

  1. Increase the speed at which you invoice and decrease the speed at which you pay your bills.

When money is going out quicker than it is coming in, you must do everything possible to halt the process. And, in the end, you want the money to run out faster than it comes in.

One simple way to accomplish this is to obtain invoices more quickly and then “float” the currency.

So, for example:

See if you can get your customers to pay you faster if you usually invoice on Net 30 terms. Give them a slight discount whether they pay in full up front or within a shorter period of time, such as 14 days.

Your cash balance would be higher if you get paid quickly.

The process’s second step is to keep your capital for as long as possible. As a result, you can try to postpone paying your vendors.

For a single invoice, you can request conditions or an extension. If you don’t want to haggle with sellers, you might pay with a credit card.

If you pay with a credit card, you will be given an additional 25-30 days to pay. (Just make sure you have enough cash by the end of the billing period to pay off the balance.)

  1. Outsource tasks that aren’t the most efficient or productive use of your time.

You’re adding to the cash flow issues if you’re doing data entry while you should be doing jobs worth $1,000 per hour.

If you’re still stuck doing menial work in your company, you’ll never have time to work on it.

You must devote 100% of your time to activities that increase the monetary worth of your talents. Every job that does not include the highest-value ability set should be delegated to a trustworthy freelancer.

If you’re a lone entrepreneur, for example, you could employ a Virtual Assistant (VA) to help you with some of the more boring and time-consuming activities you face on a daily basis.

You may even hire a firm to track calls, take messages, and schedule meetings for you. This alone could save you a couple of hours per week, allowing you to focus on activities that produce more sales and benefit.

  1. Don’t Let a Successful Month Destroy Your Cash Flow

If you’ve ever had a really successful month of industry, you know how thrilling it can be. You know how enticing it is to go out and buy the pricey item you’ve had your eye on.

Here’s some advice: don’t buy that item.

Have your feelings under control.

When times are healthy, put some money together so you can conveniently weather any bad months that may (or may not) occur in the future.

Regrettably, this recommendation is seldom practiced. Take a look at the people in charge of major product releases. They do dumb stuff with their newfound wealth, such as buy six-figure luxury sports cars and bachelor pads with 10,000 square feet.

This is a big blunder.

Since a good month does not equate to a good year. Past earnings are no promise of potential profits. Today’s economic trends are not always those of tomorrow. etc., etc.

If you become financially over-committed in your personal life, your company will suffer easily.

The most prosperous businessmen (and women) I’ve met are those who are able to give up a luxurious lifestyle in order to make wise investments to keep their companies going smoothly.

Some of the wealthiest people are perhaps among the most frugal.

Entrepreneurs who run lean operations — even though cash flow is strong — are the ones who endure difficult times and stay in their respective markets for a long time.

These four enterprise optimization techniques should be followed… Make a conscious effort to incorporate them into your business… and you’ll be able to solve the cash flow issues easily.

Article Credits –
ryanhealy.com

#BusinessExpenses #CashFlow #FasterInvoice #OutsourceTasks