09 Aug My Top 5 Hacks to Improve Cash Flow For Your Business
By Phoebe Dray CPA
“Revenue is vanity, profit is sanity, cash is king or queen!”
– Alan Miltz –
Your business can survive without good people, strategy and even planning, however just like oxygen, your business will not survive one day without CASH FLOW.
The following are my top 5 hacks on how you can radically improve the cash flow of your business. I’d love to hear which ones you are going to implement in your business.
- Hack 1 – Increase Prices
- Hack 2 – Report available CASH daily
- Hack 3 – ASK for payment
- Hack 4 – Give something of Value to customers who pay on time
- Hack 5 – Offer multiple ways for customers to pay you
Hack 1 – Increase Prices
A simple, but often overlooked or challenging action for business owners to take. If you haven’t increased your prices in the past year then this action is something you should take TODAY! I am sure all of your expenses have increased in price, therefore to enable you to continue to make a profit and continue cash flow, you MUST increase your prices.
Hack 2 – Report available CASH daily
I believe that what you measure you can improve. By reporting on CASH every day in your business you will start to see how cash flows through your business. Ideas and strategies to either increase cash flow or reduce outgoing cash flow will start to become apparent. You will be able to really understand your business and in turn, improve your cash flow.
Hack 3 – ASK for payment
The squeaky wheel gets the oil. By simply asking for payment and following up your debtors, payments will start to flow in more quickly. The sooner you are paid by your customers the more available cash you will have to grow your business.
Hack 4 – Give something of Value to customers who pay on time
Become your customers favorite business to pay by giving them something to show your appreciation for their prompt payment. Even something as little as a phone call to thank them for paying will go a long way in improving your cash flow.
Hack 5 – Offer multiple ways for customers to pay you
Make it really easy for someone to pay you. List all of the various ways they can pay on your invoice, including credit card, PayPal, direct debit, Stripe, Afterpay. Whatever way is easiest for someone to pay you, make sure you have it listed!
What 1 action step can you take from the above hacks to improve your cash flow? Cash is the life blood of your business, without it your business will STOP. Focus on cash, and take action every week to improve the cash flow of your business.
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Hi, I’m Phoebe Dray, a qualified, award winning accountant. However, I am not your typical accountant, I am passionate & fun and driven to help you succeed in business by far more than crunching numbers & preparing tax. In fact, I am a business finance success coach with solid experience in running businesses, management accounting & cashflow improvement strategies. I understand the strategies needed to make a business successful and I am focused on sharing this knowledge in a simple & easy to understand way so you can implement what you learn and create success.
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