A successful and lucrative business means more than just winning the trust of your clients and customers through offering great products or services.
Just like what this quote by Richard Branson (a British Entrepreneur and the founder of the Virgin Group) highlights: “Never take your eyes off the cash flow because it’s the lifeblood of business.”—running your SME company also requires understanding your cash flow’s importance.
Bear in mind that having a positive cash flow gives your business the ability to cover its expenses, grow its resources, and invest in new opportunities. On the other hand, your business can quickly become insolvent without sufficient cash flow, leading to severe financial problems and bankruptcy. Therefore it’s vital to closely monitor the movement of money in your company and utilise an innovative forecasting and financial management tool, Moolahmore, to guarantee that you optimally handle your cash flow.
Here are the five helpful tips to keep your cash flow positive using Moolahmore and ensure its longevity and sustainable growth in 2023 and beyond! Read on.
Keeping Your Head Above Water: 5 Tips to A Healthy & Positive Cash Flow For Your Business
1) Optimise Your Financial Operations/Management With Moolahmore
It’s time to embrace the benefits of using a fast, automated, cutting-edge cash flow tool, Moolahmore. This tool can streamline your financial operations by eliminating the repetitive, complicated, error-prone and tedious process involved in accounting. In return, this enables you (as well as your finance team) to focus on other crucial tasks that can help your company scale up.
Furthermore, Moolahmore puts forecasting at the heart of your business. Through its in-depth analytics and scenario builders capabilities—you can perform cash flow forecasts that will help determine cash shortages before they happen.
Likewise, you can also run scenarios based on real-time data to gauge how prepared your cash flow will be for specific changes (e.g. see exactly if you have enough funds should you decide to hire more staff, add inventory, upgrade your equipment and expand your operations or what would happen if there’s an economic downturn, unexpected crisis or you lose a client). Moolahmore empowers you to quickly understand your numbers and prepare better for the what-ifs and competition.
2) Reduce Your Expenditures/Costs
It could be overspending that’s hurting your business cash flow. That said, it’s crucial to carefully audit and analyse your overhead expenses, including rent and utilities using Moolahmore financial tool and look for areas where you can reduce or cut back, renegotiate contracts and get better rates.
3) Take an Inventory Check
Don’t let your inventory put your cash flow in jeopardy. So, it’s a must to watch your inventory to know what items aren’t moving at the same pace as your other products. Doing this can help you make smarter manufacturing, pricing, marketing and purchasing decisions.
Likewise, note that your goods shouldn’t sit in warehouses for decades, so it’s also essential to find the balance between having too much and too little inventory.
4) Improve Your Account Receivables
Remember that you can stay on top of outstanding invoices and lessen the time it takes to get paid if you effectively manage your accounts receivables.
To help you with that, consider these tips:
- Leverage Automated Invoice Processing and have a communication system to tend to customer queries and resolve customer concerns quickly.
- Offer a variety of payment options (e.g. direct deposit and credit card) for your clients/customers so it will be hassle-free for them to pay you.
- Give incentives and rewards like discounts to motivate early payments.
- Ask for a deposit for large or special orders.
- Be sure to follow up on outstanding payments and debts regularly.
5) Enhance Your Marketing Strategy and Online Presence
Did you know that a solid marketing strategy and online presence can help you grow your customer base and boost your revenue, ultimately resulting in improved cash flow?
That’s why you must harness the power of modern technology to promote your products and services—create online ads, send email newsletters, keep your social media and business website up-to-date, and implement SEO optimisation to increase your visibility and reach more potential leads.
Altogether, improving your marketing strategy and online presence will maximise your sales, encourage repeat purchases and give your business a stronger foothold in the marketplace and a healthy cash flow for the long term.
As business owners, proactively engaging with your cash flow should be your top-of-mind priority. Because if not, it could mean the end of your business operations. That said, ensure that you implement the methods discussed in this blog and utilise a top-tier cash flow forecasting and management tool, Moolahmore, to keep your cash flow positive and achieve financial victory in 2023 and beyond! Thanks for reading!
Experience financial stability and continuing success for your business by using a trusted and powerful cash flow management app Moolahmore to safeguard your cash flow. Schedule a demo today!