We recently produced a short video on the subject of how to improve cash flow in a small business. The link is at the bottom. But here are a few takeaways.
Invoice on time. First, one surefire way to improve cash flow in your small business is to make sure you are invoicing on time. Your business needs to be invoicing at regular intervals for what you provide customers. If you are not billing customers on a regular basis, your cash flow will suffer.
Follow up with customers. If you do not follow up on time with customers that are not paying you, that will cause your cash flow to suffer. The longer a bill goes unpaid, that harder it will be for you to collect.
Watching your expenses. When you couple not invoicing on time with out of control expenses, you have a recipe for negative cash flow. You have to watch every dollar that goes out of your business.
Check out our short video to learn more about controlling your small business cash flow.