Cash flow is vital for any business to succeed, and at times can be difficult to manage. There is nothing worse than going cap in hand to the bank asking for an extension to an overdraft, or to see a healthy bank account disappear when endless bills are due all at once. Below are a few ideas you could try to improve cash flow.
Review fixed expenses
It’s rare a service provider will call and let you know costs have decreased. Cell phones are a good example. In recent years plans have improved with lower monthly costs, and unlimited calls. Check the latest plans available, you may be able to make some significant savings.
Improving technology in the telecommunications industry also provides the opportunity to make savings on line rentals and tolls with the use of Voice over IP services. Talk to a telecommunications adviser to check any cost saving options available.
Shop around the power companies and check your rates.
Insurance premiums can vary significantly between companies. Insurance brokers have access to multiple companies and can mix and match your cover with a range of companies to provide the best cover package. If your broker hasn’t put your business out to the market recently, ask them to do so, there may be lower premiums available without compromising cover.
Interest rates have continued to drop. Meet with us to review your existing debts and determine if you can restructure your loans to reduce interest. Perhaps funds set aside for tax are not receiving interest and can offset the interest you are paying on an overdraft.
Have you ever noticed fast food operators will always ask if you would like fries or other extras with your order? If you’re a plumber who has just fixed a blocked drain you could ask, “Have you got any dripping taps that need fixing while I’m here?” This is good service, but could also lead to supplying a new tap or new shower head that’s blocked, as well as the associated labour costs going with extra repairs.
When recently purchasing a stapler and staples from a stationary supplier, the assistant asked “Would you like a staple remover with these?” In fact one was needed, so it saved another trip to the store and the assistant increased their sale by 10%. A win win for both parties.
When is the last time you used the yellow pages. Many people now use smart phones to look for services on the web. Look up your industry from a smart phone to check your business visibility. There are many ways to improve your profile on the web. If you have time to read, there are several books available on marketing via the web, alternatively talk to your web page provider if you have one.
Social media is also a free way to advertise. There is no cost to set up a business facebook page. By sending out some special offers for service may also generate additional revenue. If you are not sure how facebook works, ask someone young.
Plan for large payments by preparing a cash flow forecast
We can help you to prepare a cash flow forecast. This will show the up and downs of income, especially if your work is seasonal. Once you see your cash flow, you can manage your payments to suit the availability of funds. For example, you may prefer to make voluntary monthly payments for provisional tax rather than attempting to pay out of cash flow when funds are low. Cash flow forecasts and budgets can be prepared very quickly and may help to keep the stress levels down.