In such a competitive market that we have today, it can be quite difficult for small businesses, entrepreneurs, and freelancers to survive.
One of the best and most necessary ways to continue as a business is to have positive cash flow.
This may be more important than profit in the short-term, as profit may be promised money later on. In the meantime, you will probably have financial obligations that need to be paid faster.
In order to not go under, and thereby meaning to have positive cash flow, we’ll look at the best finance tips below.
Get a business card
One of the most overlooked ways to increase your finance and cash flow is to use the business cards that you already have.
The reason for this is simple: instead of having money taken out of your business account by using cash or checks, you can delay that charge by using the business card’s grace period. It is general knowledge that the longer you wait to pay for something, the greater cash flow you have.
Therefore, instead of paying off your credit cards at once, you should see what your card’s grace period is. Then, wait until the end of that grace period to pay.
Let customers pay with cards
If your business only accepts cash, checks or bank transfers, you could be doing a disservice to your business’ cash flow.
This is because, except for cash, you’ll have to wait quite some time to actually have the money deposited into your bank account. If you were to accept credit card payments, you’d be able to receive next-day value for your products and services.
This will also help you to cut back on all the time and energy it would take to drive to the bank, handle checks, make deposits, and all other banking chores.
It’s even a great marketing and customer service feature, as more and more people are going cashless nowadays.
Keep an eye on your cash flow
The last important thing to remember is to measure your cash flow on a consistent basis.
A lot of businesses fall victim to harsh business cycles, with high and very low periods alternating sometimes wildly throughout the year.
While this is common to all businesses in the world, it is not common that you are unprepared for these periods. More specifically, you should be aware of when you have high and low cash flow. That way, you’ll be able to decide on the best times for you to borrow, to increase your staff and work on other more expensive parts of your business.
During the low cash flow times you can decrease expensive activities, trim the fat and focus on your core business.
The best finance tips
These finance tips will put you on good footing to help you maintain a positive cash flow throughout the year and the life of your business.
With that, you’ll be able to relax and hopefully focus on many more ideas to expand your business and increase your profits.