Starting and running your own business comes with a wide array of challenges with managing and maintaining a positive cash flow being one of them. Selling products and services alone is not enough to have a successful business. Outgoing expenses (e.g., wages, utilities, vendors, etc) add up and staying on top of how money comes in and out of your business is vital to to staying afloat.

Here are some tips on how you can increase and improve your business’ cash flow.

Forecasting Cash Flow

There are some expenses that you know are coming out at certain time. Using your previous sales and expenses forecast the likely peaks and pits of your business and use this forecast to plan and prepare.

Streamlining Invoicing

Forgetting to send an invoice or waiting to send it, can cost your business a lot of money. Automating your invoicing system via software or invoicing app so that you can get paid as soon as possible.

Clearly Defining Payment Terms

Be very clear about payment deadlines, fees and acceptable methods of payment. You can offer you clients and customers a discount or coupon in exchange for paying their invoice early. Likewise, you can ask your vendors and suppliers if they offer discounts or other incentives for paying your invoices early.

Decreasing Expenses

Cash flow is not just about making money, it’s equally about being watchful of where and how you spend money and just like your personal account, these numbers should , at the very least, balance out. Examine your reports to see where you can save or cut costs.

Modernizing Your Business

A lot has changed over the past five years surrounding how we do business and handle transactions, take advantage of it. Accept payments everywhere. Stop accepting checks. Offer payment plans and multiple payment options. Consider accepting in different currencies.

There are several ways to increase your sales and revenue, but how you manage your money and how you view your business’ cash flow is what will make you successful long term. A good product with excellent customer service cannot out work an effective money management plan.