Cash flow is a real issue when running a business, because if you haven’t got the funds you need to buy supplies, pay wages, or buy shipping you won’t be able to provide your products to customers, and this can be the start of a very slippery slope. The good news is there are several ways you can ensure that your cash flow stays open as you run your business. Check out my post below to see what they are.
Make it easier for your customers to buy
One of the best ways to ensure a good cash flow in your business is to make it as easy as possible for customers to buy your products. After all, they are not going to want to jump over multiple hurdles to get your products, no matter how good they are.
With that in mind, making sure your website loads fast, and works on mobile platforms is crucial. Otherwise, you could find your customers navigating away to a competitor and spending their money there.
You’ll also want to make sure that potential customers can easily find you on social media, and when they search for related terms online, so this means a good SEO strategy is crucial for a decent cash flow.
Similarly, ensuring you make payment as convenient as possible for your customers will also make a big difference, especially if your business is operating in a hard-to-place category like gambling, CBD, or travel. The good news is it’s possible to work with a high-risk payment processor to ensure your customers can pay quickly and conveniently online. In turn, helping to ensure you have a steady stream of income to work with while also reducing the chance of fraud and charge-backs.
Agree a line of credit with your lender
You can also help keep the flow of cash into your business stable by pre-agreeing a line of business credit with your bank or building society. What this means is you won’t have to go through the hassle and time of asking for and then waiting to be approved for credit if you need it. Instead, it will automatically be there, so you can cover any shortfalls quickly and ensure your business keeps on running without problem.
Reduce your invoice terms
Another way to ensure your cash flow remains open in your business is to cut your invoice terms to commercial clients. This means reducing the length of time they have to pay their invoice from 2 months to 1. This can make a massive difference to your cash flow because money will hit your business account much faster, so you won’t have to borrow to pay for your everyday expenses, which can lead you to get into more debt. You can even offer discounts for immediate payments to incentivize your commercial customers.
Of course, not all customers will like this rule, so if they insist on longer payment terms be sure to offer them only if they agree to increase the volume they are ordering, so it makes it worthwhile for your business in the long term.
Candid Mama
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