Here are some easy-to-implement tips to keep more cash in hand and have the capital you need to reinvest in business growth.
- Fast-track the payment process: Invoice quickly and encourage online payments or wire transfer over snail mail.
- Consider offering an incentive, reward or special promotion to customers and vendors who expedite payment, pre-pay, or pay COD.
- Clear out the clutter: Liquidate slow-moving inventory and sell off unused and older equipment, office supplies and computers online or at auction.
- Got excess space? Sublet it.
- Look for efficiencies in your supply chain. Always be seeking out competitive bids.
- Create a cash flow forecast that is updated and analyzed regularly. Everyone in your finance organization needs to understand the expectations – and the numbers to beat.