Increasing Your Cash Flow
You work hard to make your business a success. Unfortunately, ingenuity is not the only thing needed to cause your business to thrive. In fact, proper cash flow is quite essential to your company. To increase the flow of cash in your business, there are a few things that you should focus on.
As with any good marketing plan, it is important that you understand your client and tailor your offerings to their needs. Therefore, your payment options for items that a client purchases on a regular basis will most likely look different from when the client is making a one-time, large purchase. You could offer a subscription for clients to receive discounts on regular orders, or you may provide a discount should a client pay off a large purchase early. Such offerings can help to create loyalty to your company while increasing your cash flow.
There are different contractual agreements that you can provide. This can not only encourage your clients to purchase more from you, but it can also attract more clientele. One common choice for payments of larger items is a down payment. If it is a big ticket item that a client does not need relatively soon, you may consider offering a layaway plan. If the client is not willing to make a down payment, instead of losing the business you could draft a contract with the payment schedule clearly notated.
Equipment malfunctioning is practically inevitable. There are also times when you will have to purchase new equipment. There are a few different ways that you can handle such situations. Depending upon the severity of the issue and the quality of the machinery, repairing a piece of equipment may be more cost effective than purchasing a new item, or vice versa. Should you have to purchase a new piece of equipment, weigh the difference between buying a used machine verses brand new.
On the other hand if you need to get rid of equipment, check if it would be possible to re-sell it. You may find that you can get more for your used item than if you took it to the scrap yard, however if that is your only option, you can still gain some cash flow from the deal.
These and other options are great ways to gain more money for your business. For times when you may need funds quickly, financing could also be a viable option. Whatever the situation take time to weigh your options and make the best choice for your company.