7 Tips for Building Your Cash Flow

When business conditions are difficult, it's necessary to stay on top of your finances and boost cash flow wherever you can. Here are some ways to find cash in your business: 1) Develop a tracking system - spreadsheets work well for this. You can track your cash as it comes in and goes out throughout the month. It'll help you stay on top of problems. 2) Keep a Close Eye on Financial Statements - watch for changes in gross margin or inventory turnover. Examine the statements line by line 3) Strengthen Relationships with Customers & Suppliers - loyal customers mean sales, partnering with suppliers could mean extended payment terms. 4) Fire the Deadbeats - playing the nice guy with customers who don't pay doesn't help. 5) Manage Your Inventory - know what's selling and what's taking up space. Control it. 6) Finance Large Purchases with Debt - borrowing money for large equipment can free up cash for working capital. 7) Eliminate Waste - waste can happen anywhere in your business. Keep you eyes open for ineffiencies and wasteful practices and eliminate them when ever possible.