Everyone who runs their own business will know the value of having a good cash flow. Put simply, for a company to flourish and prosper the cash which flows into it needs to be more than the amount which makes its way out of it!
Though this may seem a straightforward and easily understandable concept, not all businesses find themselves being able to achieve such an adequate cash flow – and that’s when the problems begin to mount up.
Without a good cash flow in your business, there is a risk of running out of cash entirely and bringing your business grinding to a halt.
Ways to Conserve the Cash Flow in Your Business
If you find your cash flow problematic, now would be the best time to start looking at ways to conserve it before it becomes worse:
- Look at selling any unwanted capital equipment
Get into the habit of searching through your business property regularly and looking at what equipment is of use and what could be parted with. If it’s no longer needed but sitting around collecting dust, it could be sold to improve your cash flow.
- Consider opening a high interest earning account
With many banks offering a variety of high interest earning accounts to businesses, your money could be making money and increasing your cash flow in the meantime. Take a look at a better account option than what you currently have and aim for the highest rate you can obtain.
- Try offering discounts for prompt customer payments
Often a big factor in cash flow is receiving customer payments late. One way to reduce this is to provide a small discount as an incentive for paying bills earlier. With everyone looking to save money, sometimes the mere mention of a cut is enough to prompt many speedier payments!