E-mail :

Password :

Forgot Password? | Sign up for Free

How to Boost Your Small Business Cash Flow – 4 Expert Tips

Posted by : Premraj | Posted on : Tuesday, November 7, 2017

Small business in budget
SHARE THIS
FACEBOOK

Business is all about innovation, creating great products or services, making people’s lives better, and providing the market what it wants and needs, isn’t it? Granted, all these things are important. However, in the end, it’s all about profit. Not because business owners are selfish and money-oriented, but simply because a business that doesn’t make a profit at the end of each month will soon cease to exist.

Profit, of course, depends on positive cash flow, and positive cash flow depends on your business expenses and income. Here’s the good news: there are many ways to ensure your business makes a profit. Here’s how you can effectively give your small business cash flow a boost, as the experts from Fundbox.com confirm.

1. Smart pricing

Correct pricing is both an art and a science; you’ll need to do some serious pricing research and make sound decisions to get it completely right. Your pricing should not just be based on your costs and a markup for profit.

It should take other factors into account, such as the value-based perception of your customers, your competition, promotional campaigns, your product’s lifespan, etc.

Your pricing strategy should have optimisation of profit at its core. Price your product too high or too low, and you might be missing out on a lot of potential revenue – and profit!

2. Leasing benefits

Purchasing business equipment may not always be the right way to go; sometimes leasing equipment is cheaper. Also, a fixed monthly payment is much more practical, and you can keep your capital in reserve to help boost cash flow if necessary. Many leasing payments for business equipment also attract preferential tax treatment.

3. Incentives and penalties

Are you being short-changed? Consider giving those who owe you money (via invoices) an incentive for early payment (such as a discount on the next contract) or impose penalties for late payment. Making sure you get what you’re owed when it’s due helps keep your cash flow healthy.

4. Invoice financing

If cash flow is problematic, invoice financing can be a useful option. You basically ‘sell’ your invoice to a third party, which pays you (usually about 85% of the invoice value), and which then collects the money itself, direct from the client. You have the cash right away, allowing you to continue growing your business.

For the struggling entrepreneur, maintaining a healthy cash flow is critical to business survival. Remember that there are many small business financing solutions available. All you need to do is research them carefully and decide which ones would work best for your needs, and help keep that cash flowing in. With cash in hand, there’s always a potential for growth!

Comments : Post a Comment | Category : Business | Tags :

Leave a Reply

Your email address will not be published. Required fields are marked *

*

* Copy This Password *

* Type Or Paste Password Here *

2,162,847 Spam Comments Blocked so far by Spam Free Wordpress

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Current month [email protected] day *

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video