Are you a struggling small business in need of a rapid cash flow fix? Small businesses experience ups and downs, but if you’ve been experiencing a downturn for a while now, it’s time to take action. Here are five ways to address your cash flow problems.
1. Estimate Growth Realistically
Some new entrepreneurs make the mistake of overestimating their future business growth. If you don’t have any real data to back up this kind of estimate, don’t make it. When you overestimate an increase in sales, you tend to think you have more of a buffer for expenses. This can lead to you overspending, which will obviously damage your business. So be careful to not let your desire for a business boost lead to you unrealistically estimating one.
2. Collect Your Accounts Receivable ASAP
Obviously, your business cannot function if your customers never pay off their debts. If you notice your customers are not paying you back quickly enough, start sending out your invoices sooner. You’ll always be behind if your customers aren’t paying their expenses. Be firm—send your invoices out ASAP. If you’re really struggling to collect, send out reminder emails or make phone calls. Do whatever it takes to collect.
3. Raise Your Prices
Increasing prices may sound like the most obvious – and highly effective – decisions you can make, but it isn’t always the easiest. A lot of small businesses wait far too long to raise their prices. Successful businesses know that regularly raising their prices ensures they are creating the profit they need to move forward. If it’s been a while since you’ve raised your prices, you should probably start doing some analysis to calculate what kinds of stability a higher profit margin could add to your business. It probably costs more to produce your services now than it did when you first got into business—and your prices should accurately reflect that fact, do they?
4. Save More
Your business might be making enough money to keep it afloat, but if you’re not saving enough money, your business will still suffer. Your company cash flow shouldn’t be treated differently than your personal cash flow. Just like your personal budget, living paycheck-to-paycheck (or payroll-to-payroll) is unsustainable. Make sure you have plenty of money in the bank available for larger expenses and emergencies
5. Implement Low-Cost Credit Card Processing
Are you satisfied with your payment processing company? Or, are you sick of being charged a ridiculous amount to keep your credit card processor in business? Wholesale Payments Direct offers reliable merchant services including low-cost credit card processing. We stay on top of the latest technology to satisfy your customers and leave them with positive interactions with your business. Our equipment is fast and compatible with all major credit card companies
It’s time to turn your cash flow problems around. Being a small business owner can be a challenge, but when you have the right money habits in place, you can succeed. Contact Wholesale Payments Direct today for low-cost credit card processing.