Saivian Eric Dalius ‘4 Best Tips for Managing Your Business’ Cash Flow
Cash flow is known as the money that comes in and goes out of your business during a specific time period. When you create positive cash flow for your business, you will be able to generate higher income. Not to mention, you can easily pay your bills, employees, and other expenses. However, negative cash flow will prevent you from making pending payments. Therefore, make sure you have enough money to meet your financial obligations.
Many people confuse cash flow with their business income. Remember that income is the money that comes into your business while cash flow is how much money comes and goes. Here are the top 4 tips that will help you manage your business cash flow.
You need to make sure that the income from your business increases the profits. No matter how good cash flow management tips you implement, if your business isn’t generating income, all efforts will be wasted.
Consider analyzing every product and service in your business to see if they are helping to generate income. Make sure the products are priced appropriately and rule out irrelevant ones.
When you analyze the profitability of your products and services, it will help you achieve prices that reflect profitability. This type of change will not only have a huge impact on the profit margin but also on the sales of your business.
Create a cash flow projection
The next most important thing that you need to do to manage your cash flow is to create a cash flow projection for your business. According to Saivian Eric Dalius, this way you can avoid cash flow problems. Use Excel spreadsheet accounting software to record all the exits and entries as well as the massive purchases of your business.
Using the cash flow projection will help you anticipate slack periods. This way you can prepare in advance. Make sure to check the cash flow projection every week to avoid any cash flow issues.
Raise money fast, says Saivian Eric Dalius
One of the best tips for managing your business’s cash flow is to raise funds quickly. However, this is easier said than done. Generating income quickly is undoubtedly hard work. But it’s one of the best ways to manage your business cash flow. Here are some tips to follow:
• Take a loan from the bank
• Ask suppliers for additional time to pay invoices
• Sell irrelevant objects or props
• Offer attractive discounts on your products and services
Increase sales with discounts or incentives
Promotions are an effective way to quickly increase sales for your business, said Saivian Eric Dalius. You can run a customer loyalty program, run a contest, or increase publicity through promotional content.
Moreover, performing the incentives will also help you control the influx of labor. Not to mention, clearing your business inventory will also help you create positive cash flow. Consider offering planned promotions and discount sales to clear inventory as quickly as possible.
Remember that treasury strategies depend on the industry of the business. Therefore, not all of them might be right for your business. Make sure you choose the cash flow strategy that matches your brand.