Stanislav Komsky Baltimore | 7 Tips For Fixing Cash Flow Problems
Download as PPTX, PDF5 likes242 views
The document provides seven tips to address cash flow issues in businesses, including running flash sales, raising prices to improve profitability, leveraging lines of credit, and adopting retainer-based fee structures. It emphasizes the importance of timely invoicing, negotiating with creditors for better payment terms, and potentially hiring more competent accounting staff to manage finances. These strategies aim to create more predictable cash flow and improve overall financial health.
Stanislav Komsky Baltimore | 7 Tips For Fixing Cash Flow Problems
- 1. 7 TIPS FOR FIXING YOUR CASH FLOW PROBLEMS
- 2. 1. RUN A FLASH SALE If all of your company’s vitals seem to be fine, then you probably just need a quick infusion of cash in order to help your business sustain what appears to be a temporary rough patch. The simplest and most efficient way to do this -- at least for companies that sell physical products and have healthy margins -- is to run a flash sale.
- 4. 2. RAISE PRICES Perhaps you aren’t having any trouble with sales, but you’re struggling to make ends meet on the cash flow front -- what gives? In this case, a flash sale doesn’t do you any good. You’re already moving inventory at a healthy pace. The problem is a lack of profitability. In this scenario, your best bet is to raise prices. While you might lose some of your most price sensitive customers, you’ll find that the majority will stick around and more than make up for the lost sales.
- 6. 3. TAP YOUR LINE OF CREDIT Many businesses frequently face sporadic cash flow issues. If you would count your business in this category, then you need a solution that allows you to quickly respond without compromising the overall operations of your business. One safety net that many small businesses turn to is a business line of credit.
- 8. 4. WORK ON RETAINER ONLY Retainer-based fee structures allow you to develop more accurate and predictable cash flow projections for a given period. Instead of having to make wild guesses, you at least have a base figure that you can work off. It’s a small piece of sanity in what is a frequently chaotic business world.
- 9. 5. PRACTICE BETTER INVOICING Invoices need to be timely, predictable, and clear. They should be sent out as soon as work is completed -- never more than a few days after a project has been finalized. The invoice should outline exactly when payment is due, what the terms are and how payment should be made. Finally, there needs to be a clear breakdown of costs so that there are no questions about how the total amount was calculated.
- 11. 6. NEGOTIATE WITH CREDITORS Outstanding payments choking you out and hurting your cash flow? Consider negotiating with your creditors and seeing if you can settle for lower payments (or at least earn some more time). As you know from being on the other side of the table, creditors are often willing to make deals. Especially when a payment has been outstanding for a period of time.
- 13. 7. HIRE BETTER PEOPLE At the end of the day, chronic cash flow problems might be a sign that you don’t have the right team handling your accounting. While it’s not the most comfortable thing to do, you may need to fire the individuals responsible and hire better people. A good hire in the accounting department can help you get a grip on the issue and start fresh.