Cash flow is regularly cited as one of the biggest stressors for entrepreneurs and small business owners. Cash management is critical to the health of any business. Even if a business is profitable—without cash, it can go under in a matter of weeks.
There are many ways to increase cash levels. Our team compiled this guide of our favorite strategies for improving cash flow management across your business.
More cash means you can grow your business, grow your team, add inventory and add locations. More cash also means you have more power – to make strategic moves, to negotiate better, to be proactive and not reactive. More cash actually will increase your profitability. And best of all, more cash reduces your stress.
There are a key strategies for improving cash flow management over the long-term:
- Collect Sooner
- Pay Later
- Manage Financing
- Increase Prices and Reduce Costs
- Make Cash Management a Company-Wide Initiative
We hope you find this guide useful as you grow your business.