1. Analyze your cash flow
A cash-flow analysis can highlight the cycles in your business. This information can be used in many ways, such as timing your borrowing, arranging the right amount of staffing, and boosting your marketing efforts during lulls.
2. Improve Your Inventory
Take an inventory check. Those goods you buy that aren’t moving at the same pace as your other products? They tie up a lot of cash. Instead of buying more of what doesn’t sell, get rid of it.
3. Organize your billing schedule
The faster your receivables turn over, the more capital you’ll be able to spend on growing your business. To help you bill early and often, put yourself on a billing schedule with an accounting software program. These programs have automated flagging system that allow you to act immediately on overdue accounts.
4. Make it a Company-wide Priority
If improving cash flow is a priority, make sure all of your employees understand that. Remember that your employees will be motivated by the targets you set for them. Obviously, collectors should have collection targets, but even your sales staff should be on board.
5. Get a line of credit
Having a line of credit in place to cover short-term needs and emergencies is a much more efficient way to manage your cash flow. Rates are only going to get higher, you can draw from your line of credit when you need it, and you pay interest only on the amount borrowed. Inquire about a Working Capital loan now.