How to Improve Cash Flow in Your Small Business

“I feel like I run a successful business. How can I have grown my business so well yet it seems I’m often in a desperate place cash-wise. How can my business be successful yet not have enough cash to do the things we want to do?!”

The pandemic of 2020 showed a lot of us business owners how fast cash flow could dry up. Many small and mid-sized businesses were in hot water within 2 weeks of sales slowing or halting.

When sales and revenue go down but overhead stays the same, it’s a nightmare situation for business owners.

We’ve written a whitepaper called Healthy Cash Flow Healthy Business. It’s a step-by-step description of how to improve cash flow in your small to mid-size business. It contains both foundational things you need to do and a list of basic changes you can implement quickly. Download it for free here.

Check out more in this month’s blog post.

In the meantime, here’s a sample of some of the quick changes you can make to improve your cash flow:

Require the customer to pay 50% of the quote up front. Use the deposit to pay for your upfront expenses. Then you’ve got cash to cover your costs without carrying them on your books for 30, 60, 90 days or more.
Invoice immediately.
Change your terms from 30 days to “due upon receipt,” 7 days, or 14 days.
Be diligent in collections. Create a contact schedule and follow it to the letter. Once you let it get past 30 days, the chance of getting paid decreases., over 90 days, the chance you’ll ever collect it is little to none.

There’s no magic to cash flow. You can improve it by understanding how it works and making a few simple changes.

To your inspired results.

The Midwest’s Top Profit-Producing Business Coach Roger Engelau and His Team of Expert Business Coaches

P.S. Want to chat and get more ideas for improving your cash flow? I want to help and am happy to chat at no cost. Book a 1/2-hour phone consultation with us and we'll go after some low-hanging fruit at your business. Click here to schedule.

P.S. Enroll now in the 3rd quarter Growth Plan Workshop and create your Single Sheet Business Plan to ensure your cash flow action items get done.