Bartercard has some handy tips on how to keep the cash coming in, and the benefits which enable members to keep cash in their business. For small business owners, in particular, maintaining decent cash flow is fundamental to staying afloat. It’s a simple equation really: no cash = no business, and so keeping on top of your cash flow has to be a top priority. Bartercard knows small businesses inside out, and in this article they share some tips on how you can maximise the cash flow in your SME.
First of all you should get in the habit of preparing and sending invoices straightaway, and what’s more, send them by email and that way they will get to the relevant person immediately. And while you’re at it make it easy for the customer to pay the invoice by providing your online banking details.
You also set clear payment terms, with a reasonable timeframe for the average small business being around 14 days. Whatever terms you decide on, set clear expectations for your clients.
Technology, especially cloud-based accounting, has made it much easier to manage cash flow, and investing in reliable accounting software will be a great time saver. What’s more, saving your accounts to the cloud means that you won’t have to worry about backing up your data and you will be able to view your accounts at any time.
Also, many SMEs make the mistake of focusing too much on profit projections. The truth is, if your cash flow is in order, then it is a follow on the effect that your profit will also be in order. If late payers are a big problem in your business, then another way to keep cash flowing is to introduce incentives for customers to pay on time. You could perhaps offer a deduction off the total for full payment or a week free – whatever makes sense in your business. Alternatively, how about offering fixed-rate payment packages? And so, if a client pays for a whole year’s worth of services or product upfront, they get one month free.
Bartercard is a valuable way to conserve cash flow by sourcing products and services without opening your wallet, and you can use your trade dollars instead of cash to pay for services like bookkeeping and accounting, setting up your e-commerce store, printing, advertising, website, graphic design and SEO. At Bartercard there are endless ways to conserve the cash flow essential in business – members can visit mybc.bartercard.com to start shopping or speak to your Account Specialist.
Effective cash flow management is critical to the success of your enterprise, so give your business the best possible chance by using these tips, and for more information on increasing profits, selling old stock and networking please go to www.bartercard.