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10 tips for a better cash flow in your business

Here are a few important tips that will turn your cash into something you'd like to talk to your banker and accountant about.

1. Regularly evaluate your spending
If your company works much like mine, the ability of your business changes every six months and that's when you should evaluate the products and services you use to run the company. Where can you save money? Where can you spend more money so you can save time? For some it may mean that they are strangling the outflow of money for something they don't use anymore or it could mean that you outsource jobs you would normally do yourself. Both examples are aspects of improved cash flow, although in the second case it means that you spend money. If you let someone else to do something that costs less than your time, you will improve your cash flow because you will have more room to make more money.

2. Postpone expensive purchases as long as it is reasonable to do so
Don't buy expensive things until you really need them. I'm not saying that you should suffer or be happy with what you have, but the price of computers and other equipment keep falling all the time and that means that if you wait until you really need to buy new equipment, you'll get more for your money.

3. Use your credit smartly
If you have an overdraft - use it rather than paying with your own money. In many cases, it can give you 20-30 extra days to use your own money as hardworking tools in your own business.

4. Beware of hidden costs
Yes, it costs money to run a business, but you must make it a routine to evaluate all your costs all the time. This may involve office cleaning, credit card charges, cell phone charges, insurance etc - everything that is intensely competitive, you can learn to negotiate. Look at the magazines you subscribe to – are you still reading them?

5. Make sure you get paid more
A great way to get more money is, of course, to raise prices. Schedule price increases so they follow the general trend. Everything gets more expensive – so too should your prices.

6. Buy in larger quantities
Buy in bulk once when you buy. Everything that you know you are using, you should stop buying in small quantities. You can save lots of money on buying bulk of everything that you know you need to buy.

7. Keep track of what discounts you have
Are you a member of a business association or any other organization that often have discounts for members.

8. Give your best customers attention
Customers who routinely pay their bills on time or earlier and are somehow rewarded for it are more likely to continue to prioritize invoices from you. Send them a gift. It doesn't need to be expensive, just send something to show that you appreciate that they keep your business going.

9. Bill quickly
Many service business owners are so busy working for clients that they forget to bill for the job. Don't wait to send out invoices until the end of each month. Make it a routine to invoice immediately after the job is done.

10. Invest in both the company's and your own growth
Put the money where it benefits. Helpful investment in marketing and in your own professional development is always the right way to increase cash flow in the long term.
    6 things that makes it easier for you to convince customers that you are their best choice
A lot has been written and said about how a seller should be, but the fact is that the easiest way to become a good salesperson, is to copy your own best experiences of encounters with sellers. It's easy to understand what makes a good seller when you're a customer and if you pay a little attention to the person helping you out in the store.

I'm an advocate for a softer variant of the selling technique, you know that already, but even if you don't scream BUY in the ear of the customers, you still have to be sure to reach out to them properly. That's what today's tips will be about.

About the author

Stefan Ekberg has worked in marketing for small business for 20 years and has written around 30 books on how small business owners can market themselves with limited resources. . In 2012 Stefan was nominated as Entrepreneur of the Year in Stockholm.

230 000 prescribes to his free newsletter "The 5 minute marketer"
Every week some 230,000 prescribers gets his free newsletter about 5 minute marketing.

"The 5 minute marketer" - the book
You run a small business and you want to get ahead of the competition, but how can you give resources to marketing when you're short on time and the budget is tight? The solution is here! The 5-Minute Marketer is packed with 395 tried-and-tested ways to market your business in 5 minutes or less.