Long-term financial sustainability is dependent upon providing great value to your customers. There is no shortcut or quick fix for that. However, if you need to generate more cash in the short-term, here are 5 quick tips to increase free cash flow in your business.
Do an expense shake down.
Take time at least once a year to scrutinize each and every company expense. Remember that old habits die hard. Evaluate you travel expenses, telecommunicate expenses, insurance costs, subscriptions, and so on. If the expense doesn’t contribute company’s profitably, eliminate it. You’re just about guaranteed to find areas in which costs can be reduced or cut out entirely.
okay, not exactly coupons, but find good deals on business services. Everyone from Costco to Microsoft is catering to the small-to mid sized business market. Make those companies win your business by comparison shopping. This idea is great when you’re talking telephone or cellular phone plans,suppliers, or even interest rates on company credit cards.
Increase your prices.
Not everyone can do this. But if you can back up your price increase by better products, service, and quality, you’re likely to keep your customers.Most people are accustomed to the idea of getting what they pay for. ( i have herd the advice of increasing your prices 10 percent per month until u lose 10 percent of your business. Then stop. You might try it again when you improve your products services. The concept is interesting and it may have some value for your business.)
Be clear about your payment terms
. From the get-go, institute a consistent and firm payment process. Most customers appreciate your professional approach if the way you do business is clear. You may consider letting your clients make payments over time, but the cost of having customers who pay late is significant, not only on he cash side but also on time spent on collections.
Ask for more business.
Do your clients and past clients know about all the services you offer? not only should you educate your customers annually bout what you offer, but also ask for more business. Chances are, you’ll get it.