Either a multi-billionaire conglomerate or a start up business, cash is the lifeblood of every business. As the money is defined as a ticket for transacting business, so it’s important in our day to day business activities. Just like today’s economic meltdown, when old business are losing their life line, so many more business will crash their asset as they didn’t recognize the important of their cash flow.
What about uncertain economy with fluctuating interest rate, bank failures, limited financial training and all these emerge as a result of poor cash management. Many underestimate the power of cash flow in business organization and as a result fold up, never to rise again.
So, your cash flow must be regular if you must survive the rule of business game. And that is why some facts are outline here to help you boost your cash flow.
-Speed up customer orders by having customers fax their orders.
-Send out your invoices the same days good are shipped.
-Indicate on your invoices when payment is due and especially the penalty interest of late payment.
-Always deposit the same day they are not before.
-Use business credit cards or charge cards for travel, lodging, meals, and small expenses for yourself and your employees.
-Follow up on late payers with phone calls and letters.
-Don’t offer too generous discounts.
-Check the financial health of new customers before offering them credit.
-And consider this, ‘if you can get your cash faster and disburse it more slowly you ‘ill prosper.