Running a small business can be exciting, but it can come with its share of challenges, too. This can be especially true when it comes to managing finances, and in particular dealing with insufficient or uneven cash flow. Even though it can be stressful to find yourself in a spot where you need to increase your cash flow within a short time frame, the reality is that there are things you can do that will help improve your situation, and even out your business’s finances.
Be Flexible With Payment Options
One way to help give your cash flow a quick boost is to become more flexible with the payment options you accept. A way to do this is to offer lower prices for those that can pay for their purchases in full with cash. Even though you may be accepting a slightly reduced sum of money overall, you will have more liquid assets this way, which is great for cash flow. Another thing it can be helpful to do when it comes to payment options is to check a customer’s credit if they aren’t paying with cash. If a customer has poor credit, it is unlikely that they will make their payments on time, which can be damaging to your business’s cash flow.
Put Unused Assets To Work
Another way to help generate positive cash flow quickly is to put unused assets of yours to work. Unused assets can take many forms, from old office furniture, to equipment that you don’t use often, to extra spaces or rooms that you could rent out. By selling things that you don’t use anymore, you can generate some liquidity quickly. Also, while you may not want to sell larger pieces of equipment that don’t get frequent use, leasing them out can be a good way to get your worth out of them when you’re not actually using them. Additionally, renting out unused space can have a similar benefit.
The Bottom Line
Running a small business can be an exciting endeavor, however, it can come with its share of challenges, too. One of these challenges is often figuring out how to manage your business’s finances correctly, and to maintain healthy cash flow. While it may seem difficult at times, the reality is that there can be many ways to improve your cash flow quickly, from offering new forms of payment options, to make your unused assets work for you.