Back to Cash Flow
We talked about how cash flow is king in business, and some cash flow problems and mistakes businesses make could hinder the money flowing into their business. But a reminder- cash flow is the heart and life source of a business; a healthy and thriving business has money flowing in and out of it regularly.
Besides cash flow mistakes, what are some steps to take to improve cash flow for a small business owner? There are many ways to increase cash flow, but only a few are sustainable and practical. Here 4 tips to improve your cash flow:
Increase Your Prices
This may seem scary to do as a small business owner, but it's a risk you have to take if you want to increase your profit and cash flow. As you grow your business, you have to look towards upscaling, which means increased prices, higher supplier fees and more–so experiment with pricing until you reach the perfect figure that even your customers are willing to buy. Unfortunately, there's no way to know unless you take a chance.
Improve Your Inventory
Another way to improve your cash flow is to take a product inventory row call; make a list of customer favourites products for those that aren't.
Meaning highlighting what products sell out quicker and what products are struggling to get purchased. The least selling products stall your cash flow, so you have to resist buying those kinds of products that are low on demand.
Find a way to sell those products; even if you have to take a small price cut—you have to learn how to forecast sales to survive in business.
Send Invoices Out Immediately
Sending an invoice on time decreases the probability of debt. Kippa is perfect invoicing and accounting software for small businesses. It has all the information needed from customers' names, dates, tax information, means of payment etc. An invoice can be sent via WhatsApp, SMS etc; Kippa helps you get paid faster.
Your customers paying when they ought to increases your chances of a better cash flow in your business
Offer Discounts for Early Payment
Think of it; it's a win-win situation for you and your customers; you get paid quicker, and they pay less. Getting cash inflows in early is the key to a positive cash flow.
The key takeaway is, If you want to manage your business and improve your cash flow actively, you should strive to achieve financial goals and understand your business's cash flow statement model because it gives you clarity on what happens to the cash from your business endeavours during the financial statements management process.
How can Kippa help you? It is a product that helps your business realize tremendous growth and sound financial management. Especially if you are trying to grow your finances, you need a profit and loss management app. Don't look too far; the Kippa cash book and financial reports, respectively, can below you track every penny your business sends or makes. The invoicing feature can help with monitoring sales everything your company sells. The debt feature could also help your business collect any money that your business is owed 3X faster.