With the way the world is, there is an ever-increasing need to own businesses that help meet the countless needs of our economy. There is no gainsaying that the core of any business is cash flow and it is recognized that the constant flow of cash keeps the business dream alive. Cash flow is required in a business for a number of things like: the remuneration of employees, increasing inventory, securing new contracts, and buying the necessary equipment required to increase output amidst other things.
It is desirable that as money is coming in it would be retained in the same manner in order to keep the business afloat, however, there are necessary outflows that must be conceded by the company or small business all for the purpose of growth. In cases where the outflow far supersedes the inflow of cash, adjustments must be made. Below are five ways your business can achieve increased cash flow.
Sell off Unused Assets
Sometimes, all we need to do is look around and take inventory of what we have in our offices or storage space. The first advice for a person looking to boost the cash flow in their business is to look within and let go of the unused asset while retaining the necessaries. In cases where you are unwilling to let go, it is advised that those unused things or spaces could be rented out. Do you have an empty space in your office complex? Rent it out and make more money!
At first glance, this might not be a feasible option but if you carefully consider it, this might just be the boost your business has been seeking. A rebranding not only improves your image, it births new ideas and if done properly, the end result could be more cash flow for your business and you! Offer value-added services to your customers, maybe in the form of free delivery or some other incentive, find something that makes you different from your competitors.
Depending on the kind of business you run, one agreeable fact is that a vast majority of people in this world love sales! Drastic reductions are not necessary as a few percentage points reduction may sway those consumers that are on the fence. You can do well to also inform your old clients of the impending sale. Don’t be afraid to offer loss leaders!
The most discouraging thing about business, especially small business, is often securing funding. Some business owners would rather starve than take loans to fund their businesses. To them, they feel like they will rest better without any outstanding debts, however, unless the business has access to large reserves, loans are often required. Equity positions could be another route but they are more complex, costly to implement and could cost you more in the long run. Every business is unique and needs to find the correct financial vehicle for its needs while staying within its abilities.
Fix it rather than replace it
Sometimes to keep the cash flow in your business, you have to be the master at managing situations. Major machine failure? Why not fix it if it is repairable instead of replacing it? Just be sure to factor in downtime, estimated life expectancy post repair and the man-hours required to make the fix.