This week’s blog is brought to you by Eric from Mydadventures. Eric outlines perfectly, real issues that small business face on a regular basis and how to mitigate them! This is a great blog you don’t wanna miss! Without further adieu, we hope you enjoy this week’s blog!
One of the most critical parts of running a business is maintaining your cash flow. You need it to pay vendors, handle inventory, and manage your books. Having cash flow problems can thus significantly impact your daily operations, causing you to lose critical business and revenue. At TheThriveVine and Mydadventures we’re all about maintaining a healthy cash flow – and we believe you can do so as well. Here’s how to get started.
Your revenue is directly related to how well you market your business. From search engine optimization and content creation to managing social channels effectively, you need to be prioritizing digital marketing to see your cash flow improve. A big part of this will be ensuring that your brand has a cohesive and well-designed look. For example, a professional logo will help make a solid first impression, build brand awareness, and stand out from your competition. You can keep costs low by using an online logo design maker for a creative and appealing logo – this will be more budget-friendly than paying for design services. Simply choose a style and icon and then customize text, fonts, and colors – and you’re all set.
You probably want to get all your business bills paid quickly and all at once. While doing this offers peace of mind, it isn’t the best for your cash flow. Strategize your bill payments so that you’re not paying all your bills simultaneously. Instead, stagger invoice dates by importance and flexibility (but pay in a timely manner to avoid late fees). This will ensure you have steady cash flow throughout the month, rather than running on empty when you pay all your bills.
As a business, you want the money you’re owed at the earliest possible. However, customers sometimes forget to pay bills or fail to make payments on time which can make communication a little strained. Of course, you want to maintain excellent relationships with your clients for future business, but demanding payment over and over again can come across as aggressive. An excellent way to avoid this (and get your payment quickly) is to secure pre-payments. This Forbes article also suggests setting payment policies in writing and invoicing promptly. Another solution is to offer incentives such as early payment discounts to your clients.
According to Modus, businesses use technology to speed up internal processes now more than ever. You can do so as well by using technology to manage your finances. For example, accept online payments to collect receivables efficiently and use automated fund transfers to pay your bills right when they are due. Invoicing is also made easy with software that sends out updates and payment reminders to your customers.
Credit is a great offering to present to your customers. However, it will also be essential to watch your credit policies towards customers carefully. Be sure to do a credit check on recent customers prior to extending credit and follow up on late payments as quickly as possible. You can use credit to your advantage in your daily operations as well. For example, a business credit card will be handy for managing daily costs and expenses. This will free up cash flow overall while offering rewards such as cash back programs on certain purchases. You may also want to consider a line of credit, as this can be used to take advantage of new opportunities or cover unexpected expenses that may hinder your cash flow.
Maintaining a healthy cash flow has never been so easy! It all comes down to careful planning and utilizing the resources available to you the best you can. Use all the technology you can to speed up your financial operations, and your balance books should be looking great in no time.
Want to cultivate a thriving money mindset? You can invite affluence into your business through the right resources, such as the articles up on TheThriveVine. Click here to check out more on our blog today!