- Send invoices straight away.
The quicker you send your invoice, the faster you’ll get paid and you won’t get paid at all if you forget to send them.
- Ensure that your customers pay your invoices on time.
This can be made easier by using direct debits, automatic invoice reminders, early payment incentives such as discounts, or late payment fees.
- Increase your prices.
Are you charging enough for your products or services? If your prices are too low then you will be selling yourself short.
- Consider new ways to appeal to more customers.
This could be by adding more products or services, putting items together to encourage customers to buy more or just updating your marketing strategy. Another great way to expand is to reward your loyal customers so that they are more likely to spread the word about you.
- Take a look at your operating expenses.
Are there any you could cut out? Is there a cheaper alternative? We would recommend that you do a bank account audit every few months so that you’re only paying for what you need to.
- If you use equipment is there a more efficient version you could buy?
Although this would cost more in the first place, in the long run it would save time and cut wage costs allowing you to produce more products. If purchasing equipment isn’t an option right now you consider leasing.
- Be strategic about when you pay your suppliers.
If the supplier offers a discount for early payment then ensure that you pay early to save some money. If they don’t then pay at a time that suits your business best.
- Open up a high interest savings account.
Put any spare money into here instead of leaving it sitting in your bank account not earning you any money.
- Do credit checks on your customers before you sign them up.
If the customer has a poor credit rating then it’s very unlikely that you’ll receive payment on time.
- Make use of accounting products.
Cashflow is a much easier thing to keep on top of if you can see the situation in real time.
