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50 Increase Your Company’s Cash Flow for More Flexibility

 

The lifeline of any business is cash flow. The more you know about the nature of your cash flow, the more effectively you can plan for your company’s growth and profit. Whether or not business is good at any given time, good money management can enhance your bank balance. Here are seven approaches to maximizing your cash flow every day.

 

  1. Be diligent in the collec= tion of your outstanding receivables. Consider asking for a deposit before shipping a purchase or completing a service.

 

  1. Research your purchases. Whether the subject is office supplies or specialized equipment, know = what constitutes good value at a good price. Overpaying for business necessities is bound to gnaw away at profits. When you see a good or service whose price appears to be rising disproportionately, check aro= und for another supplier who may have a better price and terms.=

 

  1. Track the timing of your = fixed expenses. By staying on top of their respective due dates, you wonR= 17;t get caught short on cash when a critical payment is due. Conversely, y= ou want to pay bills on time, of course. But don’t pay them earlier than you have to.

 

  1. Consistently monitor vari= able expenses such as utilities, telephone service, and meals and entertainment. Employee downtime and overtime can also strain cash flo= w.

 

  1. Use judgment in paying for purchases with credit cards. The flexibility of credit cards comes with the potential downside of creating too much debt, especially during periods of uneven cash flow.

 

  1. If you have a varied prod= uct line, know which items bring you the highest profit (as opposed to the quickest sales) and focus on selling them.

 

  1. Establish a line of credi= t with your bank that you can have available if needed for emergency use.

 

Las= tly, remember you have other resources for financial guidance in making your cas= h go further. The loan officer at your bank may be one; other business owners are another.

 

If = you would like to discuss this topic or business planning, business growth strategies or a specific business issue, contact SCORE® “Counselors to America’s Small Business.” To contact the Greater Binghamton SCORE Chapter 217 for assistance call 607-772-8860 or 1-800 -920-6972. You may also contact SCORE= ® for person to person counseling appointments at = the above telephone numbers. If you are already in business onsite assistance is also available. The Greater Binghamton SCORE® Chapter 217 website is found at www.greaterbinghamtonscore.org .  The national SCORE® website is found at www.score.org or sign up for email counseling at= www.score.org

 

Ask SCORE        =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =   

 

50  Increase Your Company’s Cash= Flow for More Flexibility

 

The lifeline of any business is cash flow. The more you know about the nature of your cash flow, the more effectively you can plan for your company’s growth and profit. Whether or not business is good at any given time, good money management can enhance your bank balance. Here are seven approaches to maximizing your cash flow every day.

 

  1. Be diligent in the collec= tion of your outstanding receivables. Consider asking for a deposit before shipping a purchase or completing a service.
  2. Research your purchases. Whether the subject is office supplies or specialized equipment, know = what constitutes good value at a good price. Overpaying for business necessities is bound to gnaw away at profits. When you see a good or service whose price appears to be rising disproportionately, check aro= und for another supplier who may have a better price and terms.=
  3. Track the timing of your = fixed expenses. By staying on top of their respective due dates, you wonR= 17;t get caught short on cash when a critical payment is due. Conversely, y= ou want to pay bills on time, of course. But don’t pay them earlier than you have to.
  4. Consistently monitor vari= able expenses such as utilities, telephone service, and meals and entertainment. Employee downtime and overtime can also strain cash flo= w.
  5. Use judgment in paying for purchases with credit cards. The flexibility of credit cards comes with the potential downside of creating too much debt, especially during periods of uneven cash flow.
  6. If you have a varied prod= uct line, know which items bring you the highest profit (as opposed to the quickest sales) and focus on selling them.
  7. Establish a line of credi= t with your bank that you can have available if needed for emergency use.

 

Las= tly, remember you have other resources for financial guidance in making your cas= h go further. The loan officer at your bank may be one; other business owners are another. And don’t overlook SCORE “Counselors to America’s Small Business.” SCORE is a nonprofit organization of more than 10,500 volunteer counselors who provide free and confidential advice to veteran entrepreneurs and those just starting out. For the SCORE chapter nearest yo= u, call 1-800/634-0245, or find a counselor online at www.score.org.

 

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