What separates a good small-business owner from a great one.As per Russ Whitney it’s not as easy as making a big sale, but business owners who effectively manage their cash flow can gain advantage on their competition.
Maintaining strong cash-management habits can help you grow your business and outpace the competition.In today’s economy, many business owners are finding it a bit easier to improve their cash flow.Russ Whitney put forth some tips for every owner to follow as and when required.
1. Cut-off expenses
A good place to start when improving your cash flow is to spend the money you have more wisely and resist it. Russ Whitney says most cash flow problems are a direct result of overspending.Carefully tracking your expenses can be a very good experience.
2. Boost collections
One of the most tedious way to improve your cash flow is to get your customers to pay you faster. Your customers will want to hold off paying you as long as possible to protect their own cash flow. You can start by offering a discount for payments that arrive on time.
3. Delay payments
The other side of the cash flow is payments. You should never make them before you absolutely have to, unless you get a discount for early payment. The better cash flow management for Russ Whitney means speeding cash in and slowing cash out. Don’t send it off to a supplier and improve his cash flow at the expense of yours.
4. Lease instead of buying
While leasing may cost a little more in the long run, it’s a good way to hold onto your cash. Leasing companies finance more business equipment. In fact, for equipment deals lease financing is relatively simple, even for new companies with low credit score.
There are many good cash flow forecasting applications that can tell you where every cash is going. The best ones for Russ serve as an early-warning system to determine cash shortfall, making it easy and intuitive for you to forecast cash flow and avoid critical mistakes.