3 More Tried And True Techniques For Better Cash Flow Management

In our last blog, we revisited the topic of cash flow and listed some methods that can help your company’s cash flow situation. They included forecasting your future income and expenses, speeding up how quickly you get paid and eliminating unnecessary expenditures. In this blog, we’ll continue our look at how to improve cash flow.

Here are three more tried and true techniques for better cash flow management:

1. Step your sales numbers.

We know. It’s an obvious suggestion. But what steps are you taking to increase your revenue? The art of boosting sales requires strategic planning. Are you taking advantage of the popularity of online shopping? Launch or update your online store to attract more internet surfers. Why not devise a new marketing campaign that offers enticing discounts throughout the forthcoming summer season? Also, ensure that your sales team is motivated and well-trained to close deals effectively.

Scotiabank suggests that you consider “continuity” sales. “A subscription-based product such as a newsletter or magazine is a good example of how continuity sales work,” explains their website, “You pay the publisher upfront for a one-year or two-year subscription; in return, you get a better deal on the cost of the newsletter. Continuity sales can be made to work for almost anything. Your customers save money on a package of goods or services, and you get the cash up front.”

2. Improve your financial education.

You’re never too old to learn something new! Even though you may be an expert in your field, you can always use a little help with the concept of financial management. It’s a good idea to attend workshops, take online courses or hire a financial advisor. Encourage your team members to do the same. When you are all better equipped to make informed decisions, your company’s cash flow will be impacted in a positive way. It’s pays to have knowledge that keeps your business financially healthy.

“Financial literacy equips you with the tools to make these decisions confidently,” stresses Avisar Chartered Professional Accountants, “By understanding your financial statements, you can gauge the health of your business, assess profitability, and determine the feasibility of big-ticket expenses. It’s like having a financial compass guiding you toward decisions that align with your business goals.”

3. Build a cash reserve.

You know the whole “rainy day” saying, right? Set aside a portion of your profits each month into a separate savings account. This “rainy day” reserve can act as a buffer during lean periods. It will allow you to cover those sometimes-unexpected expenses without dipping into your operational funds. A cash reserve can provide you with great peace of mind. It will also ensure that your business can weather any financial storm – or rainy day!

“Do not forget to repay the money you took from your cash reserves,” alerts Rick Smith of Forbes Burton, “Avoid the temptation of withdrawing from your savings without replenishing them accordingly. See this as a debt you owe yourself. You can also transfer your cash reserve to a separate account so you don’t borrow from it often. Regardless, ensure you pay back when you borrow to secure your business finance.”

Remember that Synergy Merchants’ unique merchant cash advance program can also help you to improve your company’s cash flow. To learn all about it, please don’t hesitate to call us at 1-877-718-2026 or email us at info@synergymerchants.com. You can also apply online for a free, no obligation quote!