About 20% of all businesses fail within their first year due to running out of funds. There comes a time when you have to be aggressive about sending out invoices. It’s okay to ask for the money you’re owed.
Don’t wait until you’re close to bankruptcy to apply for a loan. If you do, there’s a good chance you won’t get approved. It can also take a few days for the money to arrive in your account after approval.
These are only a few small business cash flow tips you should take to heart. Check out this guide to learn more about staying on top of your finances.
Be Quick With Your Invoices
Invoices are sometimes delayed. That’s not a huge issue when your rent isn’t due for two weeks. When it’s the end of the month, and you still haven’t paid all your bills yet, that’s cause for panic.
That’s why it’s crucial to send out invoices ASAP. This will ensure funds are in your business bank account when you need them.
Make Adjustments to Your Inventory
Proper inventory management is key when it comes to managing business cash flow. You’ve got to go through your stock once a week or so to identify items that aren’t selling as well as you thought they would.
These products aren’t making you any money. All they’re doing is gathering dust on the shelves. Sell them at a discount price and never look back.
Offer Plenty of Payment Options
Customers want to pay for goods and services in a way that’s convenient for them. If you don’t accept certain credit cards, you’ll lose out on a lot of business.
Certain payment options also take longer to clear than others. For example, let’s say that you only accept invoice payments via check. First, you’ll have to wait for the check to arrive in the mail.
After you deposit the check into your business bank account, you may not be able to access the funds for almost a week.
Keep Up With Your Records
There are a few reasons why you always want to keep up with your financial records. The first is for cash flow management.
If your business is running low on funds, your records will tell you by how much.
Your records will also make it easier and faster to do your taxes at the end of the year. Making an account at https://www.winden.co/ will allow you to keep an eye on your company’s finances at all times.
Don’t Wait to Borrow
Never wait until your business is on the verge of bankruptcy to borrow money. If you do, there’s a good chance that you won’t be approved for a loan.
If you are approved, you’ll have to wait a while for the funds to show up in your business account. That can be stressful when you have an angry landlord banging on your door.
Stay On Top of Your Small Business Cash Flow
One of the biggest reasons why companies fail is that they can’t keep up with their small business cash flow. You’d be surprised at how much damage an unpaid invoice can do.
Keep up with your financial records, borrow money when you need to, and check your inventory often.
For more tips that will help you keep your doors open, visit the Business section of our blog.
