Healthy cash flow acts like fuel to any business. A positive cash flow indicates that you’re doing your business in a Professional way, which means you are running a profitable business. Profitable business means you are always ready to grab any good opportunities coming your way to boost your revenue and make the most of it.
A Negative cash flow indicates that you are managing your finances poorly. Hence you will always be in a cash deficit. It means you will have to loose out on the new good opportunities coming to your business, as you may not be ready to grab them.
We at Rupyaapaisa.com are focused on empowering MSMEs by educating and hand-holding them to ensure they are constantly growing and contributing to our nation’s economy and well-being.
I am sharing 7 proven strategies to improve your CASH FLOW to keep your business growing.
1. Focus on your receivables :
▪ Ensure you raise your invoices on time.
▪ Have a robust follow-up mechanism for your payments.
▪ Offer shorter credit periods.
▪ Add a penalty clause for delayed payments.
▪ Incentivize your customer who pays before the invoice’s due date.
2. Monitor your operational expenses: – It is a crucial activity.
▪ Watch all your daily, weekly, and monthly expenses in business.
▪ Have a good cash flow statement coming to your table in time.
▪ Analyze your expenses, and evaluate their necessity.
▪ Explore alternatives to reduce costs; involve managers for feedback.
3. Focus more on increasing your Sales: Sales is blood in any business, and an entrepreneur should always be hunting for opportunities to increase revenues.
▪ Acquire new customers
▪ Add more product lines to the business to attract new prospects.
▪ Sell more to your existing and new clientele.
▪ Make your happy customers your brand ambassador
▪ Give them a WOW feeling by constantly asking for the scope of improvements and feedback. Get their testimonials
▪ Do the above regularly and keep reviewing.
4. Learn the Art of leverage most from your bank relationship :
▪ Your Bank can be your silent partner in your business.
▪ It can help you achieve your milestones.
▪ Discuss your business goal and requirements with your Banks.
▪ Avail a secured or unsecured loan as per your business requirements
▪ Maintain a healthy cash flow.
The art of leveraging will enable you to plan a loan for various crucial reasons, as under :
* Business Expansions
* Grab the seasonal opportunities
* Add or upgrade new equipment or machinery
* Explore opportunities in other locations
* Plan and invest in new marketing strategies.
We at Rupyaapaisa.com have expertise in the art of leveraging in business. We are glad to play the such role of your consultant for you, who can always guide and mentor you in any of your above requirements.
5. Have an equity Partner :
▪ Onboard a partner who can invest his money and specialization
▪ Dilute some percentage of ownership by giving him a share in the company.
▪ Ensure you have a significant stake so that you are empowered with all the significant decision-making power with you. This is very, very crucial.
We at Rupyaapaisa.com can be good technical support for you in all such activities.
6. Close watch on your inventories :
▪ Closely monitor the money invested in your inventory.
▪ Focus on having immediate consumption of merchandise.
▪ Identify and do away with slow-moving or dead stock,
▪ Find ways to save your working capital, impacting your cash flow.
7. Have a proper cash reserve :
▪ Cash reserves help overcome any unforeseen situation or loss in Business.
▪ Ideal formula is to have six times of all your monthly expenses kept in emergency reserves.
▪ Have the amount in the form of Bank FD or reserves easily liquefiable.
Emergencies like Covid or others do not inform and reach our lives. We must ensure such events do not impact our personal or business life.
Dwell upon the above strategies, and we are sure this will not just manage your business and its cash flow in the most profitable ways but also ensure peace of mind as well.
Rupyaapaisa.com’s objective is to sincerely help MSMEs keep contributing to the nation by expanding their business, generating more employment, and adding more value to people’s life.
We are a leading financial consultant with over 16 years of experience and helped 5000+ businesses plan their Successful Business Growth journey.
Contact us at email@example.com for any queries or advice.
your partner in your business Growth.*