3 Cashflow Habits to Stop Doing Now
In most business industries, ebbs and flows of sales are expected and totally normal. Though this may pose possible stagnation of your cash flow, you can mitigate the effects of the unexpected with careful planning and preparation. As mentioned in the last [Informer] edition, keeping the cash you have on hand, ready to use when you need it is essential to consistent growth and therefore worth the effort––whether that is your effort or ours is up to you!
In review, there are 5 activities you can do to keep yourself in a good cash flow situation throughout the year.
#1 - Bill consistently and on time
#2 - Offer discounts for early payment
#3 - Lease, don’t buy
#4 - Increase prices
#5 - Ask for deposits or advance payments
At Benay, we are constantly searching for ways to create balance as a foundation for steady growth for our clients. The plans we create have stability in mind and aim to save you from the headaches and stress associated with being caught in a spot where you are unable to keep your business moving forward. Let’s face it, we all sometimes get into ruts or bad habits – personally and at the office – some of these habits can be detrimental to your business by inhibiting your cash flow.
Though there are a handful of other ideas and practices we use to keep our client’s cash flow in tip-top shape, the following are our top three scenarios of “what NOT to do” with your business finances:
#1 – Paying everyone at the same time
Leave a little wiggle room in your accounts for “just-in-case” or, as my dad used to call it, his “oh sh** fund”!
#2 – Keeping prices static
In today’s crazy world, anything can happen. Anticipating dramatic changes for any reason – news releases, pandemics, someone leaving unexpectedly – is a good idea. Keep an eye on your costs and profit margins and adjust accordingly. This may mean raising prices; it can also mean pivoting your offerings.
#3 – Continuing to work for clients with unpaid invoices
Don’t be a “bank” for your customers. You deserve compensation for your wares and/or services on time and in full. Period.
Your company may not be doing these things currently; being vigilant and having a backup plan is the best tactic to keep it that way! As seen and proven in recent news, business standings can change quickly. Perception, availability of goods, and continuous employee support are all key examples of pieces that make or break your success level.
Whatever circumstances you find yourself in today, turn to the experts at Benay for the guidance you need to implement a winning cash flow strategy.
Have a wonderful day,
Benay Enterprises is happy to share our newest accreditation!
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