3 Simple Ways To Improve Your Cash Flow

If you are a new entrepreneur, the chances are that your top three business priorities concern money in some way or another such as funding, pricing your product, payroll or the marketing budget. Your cash flow deserves to be at the top of your list of things to keep on top of. Without a decent cash flow, you cannot fulfil orders, your supply chain can break down, and you won’t be able to pay your staff. This is when businesses start to fail. As a new startup, you need to employ a financial strategy with the aim of maximising your cash flow at all times. Take a look at these three simple ways to improve your cash flow.

Send Out Invoices Immediately

Sometimes we can’t even blame our clients and associates for not having a decent cash flow. Our cash flow is dictated by our own discipline. If your business has completed work for a client, you need to send out the invoice and billing for this work straight away. Don’t leave it or say to yourself that you’ll send out the invoices that you’ve built up on the same day each week. As soon as the work is complete, invoice within the hour. There is no excuse for late payment if you have sent your invoices out and you keep track of them.

For those clients who are repeat customers and yet they still make late payments, you may need to employ a strategy that protects your assets. Focusing on an Invoice Finance Solution cash flow management tool can get your invoices paid by a third party instantly. This means you don’t have to chase up clients and your cash flow remains buoyant.

Consider Your Pricing

If you haven’t reassessed the pricing of your products or services for six months or more, it might be time to check out your competitors. You need to strike a balance between pricing your products so that they can attract the customers that usually buy from your rivals. At the same time, if you price too low, you can miss out on a chunk of profit. A lower price, while attractive, can also make your product seem inferior or substandard compared to your market rivals’.

Branch Out

Even though it’s good to have a niche market to tap, you don’t want it to be too marginalised. A narrow field of customers means less potential sales. By branching out by expanding your range of products or services, you can attract a whole new demographic to your company. If you are selling tee shirts for hipsters, consider doing some custom printing or having a range of hoodies to add to your collection. You also might be keen to consider a more global market. By expanding internationally, you can tap the same niche, but just worldwide.
Being an entrepreneur is tough, especially when you are finding your place within a competitive market. You need cash flow to survive. Follow this guide and you will maximise your financial security and enjoy greater success.