managing cash flow in small businesses (on click)

18/08/13

MANAGING CASHFLOW IN SMALL BUSINESS5 Tips for Managing Cash flow in Small Businesses

Your Small Business Coach and MentorLondon, United Kingdom

http://www.yoursmallbusinesscoach.co.ukT: +44(0)207 096 0620

18/08/13

Cash flow is a challenge for many business owners, and start-ups as well as established businesses find this an issue.

Business owners like to know that not only are they paid on time but they have cash in the back or access to finance in order to buy what's needed for the business.

Tips in Managing Cashflow

Your Small Business Coach and Mentorhttp://www.yoursmallbusinesscoach.co.uk

T: +44(0)207 096 0620

18/08/13

Regularly update your financial accounts, reconcile bank statements and prepare management accounts to forecast beforehand when cash shortfalls are likely to occur.



T: +44(0)207 096 0620

18/08/13


These should be updated at least once per month and preferably weekly so you will know weeks ahead when you are not likely to make a payment.


T: +44(0)207 096 0620

Tip 1: Keep regularly updated management accounts.

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This helps customers as well as your business.

With more than one option for payment, you have flexibility in how you pay suppliers. It gives you time also to identify alternative ways to finance payment or defer transactions to a later date.



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Tip 2: Have more than one payment option

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Tip 3: Ensure timely payments from customers/clients


As a small business owner, you should not be made to provide interest free loans to other businesses –be they other small businesses or corporate businesses. If you can, ensure payment for services provided immediately or within 7 – 14 days.


T: +44(0)207 096 0620

18/08/13

Consider offering a discount, e.g., 5% if payments are made before a given date.


Tip 4: Offer customers incentives to pay you early


T: +44(0)207 096 0620

18/08/13

While you want to be paid immediately if there are suppliers that are willing to wait for payment, you should take advantage of this.

Alternatively, you can make payments by credit card, then ensure full payment to the card company within a month or even 45 days if offered as interest free by your credit card company.


Tip 5: Work with suppliers who are prepared or can afford to offer you options to pay later.


T: +44(0)207 096 0620

18/08/13

Prepare your business to grow with effective systems for cash flow management and ensure the business not only survives, but thrives.

Ensure you can finance business development, services and products for customers/clients and make timely payments to staff and suppliers.



T: +44(0)207 096 0620

18/08/13

Want a more profitable business & greater value for customers?

Then, contact Your Small Business CoachEmail: [email protected] T: +44(0)207 096 0620

London, United Kingdom


Request your free pdf copy with Tips in Managing CashflowEmail: [email protected]
