You are Here:
Home > Dollars & Sense > Cash
Flow Management
Cash Flow Management
by Dr. Rachna D. Jain
Cash. Most people want more. When
running a small business it's particularly
important to monitor how cash is coming in and how much cash is going
out.
This month, I'd like to take a few minutes to share some ideas on
cash flow
management as in how you can keep more cash in your business for
a longer
time.
Government
Grants for Women - Click Here!
Free Government Grant Money For Women Only! Grant money for Business, Education,
and Personal Needs! Apply Today!
1) Periodically re-evaluate your
expenses. If you are anything like me your
business changes & shifts every 4-6 months and you should re-evaluate
the
products and services you are using to run your business. Where can
you save
money? Where can you invest more money so you can save time? For
some
people, this may mean canceling out on certain business expenses
that they
never fully utilize, or, it may mean outsourcing some tasks on which
you
normally spend your own time. Both examples are aspects of improved
cash flow
management even though outsourcing involves spending more money.
If you
can hire out work at less than your hourly rate, you're improving
your cash flow
because you're creating more time to make more money.
2) Hold off on electronics and other
purchases for as long as reasonably possible.
I'm not suggesting you suffer or get by with significantly less than
you need but
the prices on electronics and other goods decline over the months.
If you need
to invest in a new computer or printer or copier you can save money
without
sacrificing quality if you can wait a few months to purchase.
3) Use credit responsibly. If you
have access to lines of credit you can use
these to finance business purchases rather than paying cash outright.
This, in
many cases, can give you 20-30 extra days on your money enabling
you to
save or invest it for maximum return.
4) Watch out for hidden fees.
Yes, there are some "costs" of
doing business.
However, at least once every 6 months, review what you're paying
for services
like office cleaning, credit cards, long distance calls, liability
insurance, etc.
Make sure these costs are not rising faster than they should. It's
a good idea to
keep track of any long-term contracts or commitments to make sure
that you're
not being charged too much for standing services. Also, watch out
for those
policies which automatically renew.
5) Get paid more. Another way to
manage your cash flow is to charge more for
what you do. Institute planned increases in your payment rates over
a year or
two. Raising your fees as a cash flow strategy only works, though,
if your
spending remains less than your earnings.
6) Buy in bulk. This applies to physical
products/supplies as well as non-physical
ones (such as services). You can often realize a significant cost
savings on
items bought in bulk especially if you were going to buy them anyway.
7) Keep track of your discounts and
other rewards. We are inundated with special
offers, promotions & discounts. Use these wherever you can. Recently,
I was
able to save a few hundred dollars on items I purchased due to in-store
specials
and mail in rebates. In a sense, my savings was found money!
8) Give special consideration to
your customers who pay early and in full. Clients
who routinely pay their bills ahead of time, and who are rewarded
for doing so,
are more likely to continue this behavior which results in more cash
inflow for
you. You might, also, offer your customers a discount if they buy
in bulk from
you. This is a marvelous way to save on the costs of accounts receivable
as
you generate some fast cash.
9) Invoice before, or soon after,
performing a service. Don't wait to send out bills
just once every 30 days. This can delay cash inflow for months. If
you provide a
regular, predictable service, plan to get paid ahead of time. If
you must get paid
after providing the service plan to send out invoices at least twice
per month so
you can better manage the inflows and outflows.
10) Invest in the growth of yourself
and your business. Spend money to market
your business, invest in your own learning and get help as soon as
possible.
The more you put into your business, in a thoughtful and measured
way, the
more you will get out of it.
Dr. Rachna D. Jain is a sales &marketing coach, author, consultant
and speaker. Sign up for her free email newsletter, "Sales & Marketing
Secrets" at
sams-subscribe@salesandmarketingcoach.com. Visit her website at:
http://www.SalesandMarketingCoach.com
Email Dr. Jain at: coach@salesandmarketing coach.com
© 2004 Dr. Rachna D. Jain. All Rights in All Media Reserved.
Related Articles
Help Your Small Business Succeed With A Credit Card
Find A Good, Low Interest Credit Card for Your Business
Retirement Planning for Women in Business
Understanding and Funding Annuities and Structured Payment Plans
Structured Settlement Explained
Can Anyone Sell Structured Payment?
Compare Annuity Rates
How To Get Cash For Structured Settlement
Turn A Profit As A Buyer Of Annuity Payments
To Sell or Not To Sell Settlement Annuities
Cash Flow Management
Home Based Business: Your Ultimate Tax Shelter
Shocking Facts - What Debt Settlement Companies Don't Tell You
Budgeting When Your Paycheck Varies
Creating Cash Flow Projections You Can Trust
Make Them An Offer They Can't Refuse!
Dollars and Sense Websites to Visit
| 
