Managing Cashflow – 10 Valuable Tips.
Regardless of the size of your business managing money is going to be one of the most important responsibilities. A healthy sales pipeline will mean nothing if you aren’t in control of what money is going out and more importantly, in relation to cashflow, when those monies are going out!
Fortunately there are many excellent and inexpensive software packages that will take a lot of the calculations away from the user but there still needs to be some good old fashioned common sense applied.
Have a look at our Cash Flow Tips below:
1. Flex Cashflow forecasts up and down by 10, 20 & 30% to create ‘best & worst case scenarios’. Look at how the overall cashflow figures are affected for each & consider where you could cut back if sales don’t match expectations.
2. Do it yourself or outsource? The internet has opened up a huge number of freelance websites where you can utilise other’s skills – think about what you can do & what you may be better off paying someone else to do.
3. If you need to accept online payments then try opening a merchant account or use consider using paypal if you are unable to initially open your own account. You will pay fees but you’ll get the money almost straight away which could make a huge difference to your cashflow!
4. Alternatively, Direct Debit is a great hassle free way to get customers to pay for subscriptions or contracts and it won’t impact on your own time!
5. If you have fixed costs such as rent or bank loans then make a note of when they leave your account. Always be aware of the ‘bigger’ costs & when they leave your account – you’ll want to enure the money is present to pay for them.
We’ll finish the post tomorrow with the remaining five cashflow tips. Let us know what ideas or suggestions you may have in the meantime.