Cash is king-so they say. If you work for yourself or someone else, you need to be aware of ways to improve the cash flow. Budgeting and collecting are not glamorous but they are both key to having a successful business. Working in a successful business is much more fun than working for a struggling one!
1. Stick to your budget. (If you don't have one, make one now.) The budget is part of a business plan. You want to know exactly how much to spend on each large item you purchase and when you will have the cash to do it. Your cash flow projection coupled with your forecast will give you the proper timing for making purchases. The items you have budgeted for should also be part of the business plan.
2. Bill your clients regularly. Many business owners are so busy selling to new clients that they forget to invoice the clients they have already worked with. Put the task of billing your clients on your calendar and then stick to that schedule.
3. Get a retainer for your services before you begin the work. If you are going to be working with a client over a period of time, you will want to request some money up front before you begin to deliver the service.
4. Give a discount for early payment. You will be able to collect the money more quickly if you offer a discount for prompt payment.
5. Accept a credit card for payment. Although you have to pay the credit card company for this service, having the convenience of a credit card allows the client to pay immediately. Collection is now the problem of the credit card company.
6. Use your own credit card to finance purchases but do it cautiously. If the interest rate is low and you can pay the credit card company back relatively quickly, credit cards are often a good way to even out your cash flow.
7. Establish a line of credit with a bank. This is relatively easy to do so long as you have good credit and it gives you a cushion of cash when things are tight. Sometimes the bank will offer a really good rate to encourage you to become their customer for other banking services.
8. Put the cash that you have on hand in an interest bearing account. No reason to have cash sitting in an account that doesn't accrue much interest. As cash grows consider money market accounts, CDs and savings accounts.
9. Pay your outstanding bills judiciously. Notice which vendors are willing to wait for payment and which will charge you interest if you are late. Schedule payment to maximize the cash in your account.
10. Consider getting an expert to watch your cash flow. Have someone (financial advisor, accountant, bookkeeper) available to run financial reports each month so you know exactly where you stand in your business.
Alvah Parker is a Business and Career Coach as well as publisher of Parker's Points, an email tip list and Road to Success, an ezine. Parker's Value Program? enables her clients to find their own way to work that is more fulfilling and profitable. Her clients are managers, business owners, sole practioners, attorneys and people in transition. Alvah is found on the web at http://www.asparker.com. She may also be reached at 781-598-0388.
recurring cleaning service Mundelein ..Do you want to be #1-10 on Google and other... Read More
Here are seven excellent ways to earn income from international... Read More
If you are like me, you are living some distance... Read More
1. Focus on the other Being known as a... Read More
How do you focus on your urgent e-mail and organize... Read More
Viral Marketing is allowing people to giveaway and use your... Read More
One way to manage your time more effectively is to... Read More
You have seen their ads and you may have wondered... Read More
Are you ready for a BASH? Have you ever been... Read More
Rut -- a routine procedure, situation, or way... Read More
Talk to Your People Often By building a great... Read More
With today's technology and people's need for more information it... Read More
Many businesses lose money yearly because they don't think creatively... Read More
You're busy with your business today, aren't you?You're pushing your... Read More
Being appropriately dressed is essential in making good impressions in... Read More
The 9-to-5 grind can make you feel like a just... Read More
We've heard numerous success stories of Internet entrepreneurs like Jeff... Read More
How much is your data worth to you? In this... Read More
You have a great idea you know is a winner.... Read More
A lot of people are insecure about buying something or... Read More
Here are a few ideas to get you started, all... Read More
1.) Brainstorming for an idea - You must select what... Read More
1. Make a clear, specific commitment to what you want.... Read More
If you are thinking of starting a new business, or... Read More
'Tis the season to give. And finding the right gift... Read More
tidy up service Buffalo Grove ..How's your business going to keep growing with the holidays... Read More
I have some good news and I have some bad... Read More
1) Prepare a realistic business plan.Think of this as your... Read More
Positioning Your Company for Debt Financing:There was a time in... Read More
Many mistakes can be made in business and if you... Read More
Either simply a looker-on or a player in the world... Read More
10 Ways to Boost your ProfitabilitySo many business owners work... Read More
Most people wish they read more. It is an activity... Read More
At Macquarie University in the early '90s, three Australian early... Read More
Do you plan events for the corporate world like product... Read More
1. Combine Emotion and LogicConsumers buy because the want to... Read More
The term "junk mail" is a well-known term. To... Read More
How many of us have been in a position where... Read More
There are many places you can get books, and I... Read More
Whether you are self employed or you work for someone... Read More
Good Speakers need good listening skills to become Great CommunicatorsSpeakers... Read More
Web Site Blues? Need one, don't know where to start?... Read More
There are lots of benefits for some businesses to import... Read More
You have a great idea you know is a winner.... Read More
1. Great Things Take Time ? Three years passed between... Read More
When sending mail to clients and potential clients, make your... Read More
Do you want to be #1-10 on Google and other... Read More
Skilled workers of every age have prized their tools. I... Read More
Being appropriately dressed is essential in making good impressions in... Read More
Ever lost a sale you thought was in the bag?... Read More
Top Quick Tips |