What could you do with more cash?
Do you ever feel like your money is spent before you even receive it?
Does it seem like you can never start that new project you’ve been dreaming of because you are too busy dealing with headaches and emergencies?
Have you ever felt like you were treading water when you were trying so hard to make progress?
One question we often ask new businesses is simple - what could you do with more cash? We’ve seen the tangible effects of bad cash flow timing on our clients. Missed payrolls, angry suppliers, delayed deadlines and more. Here are just a few, simple ideas of how more cash could benefit your business:
Drop the credit cards
Credit cards provide quick access to lines of credit, but they come at a cost. These are not meant to be a long term financing solution for your business. Getting out from under some credit card debt frees up cash flow within the business and relieves stress from your mind as well.
Gain a better relationship with vendors
Paying the companies you work with, in full and on time, can mean a world of difference in the customer service you are receiving, let alone potential discounts for earlier payment in the future. Oftentimes vendor payments get pushed out when cash flow gets tight, but you have to pay your vendors to keep your inventory. It’s a vicious cycle and sometimes a cash infusion can set it back on the right track.
Focus on new business
Most business owners would love to be able to focus on what the business really needs, which is finding and securing new business. After all, new revenue helps solve a lot of these issues on its own. But time cannot be devoted to making more efficient processes, sales calls, staff training and other important tasks when it is spent putting out fires from financial headaches.
Maintain adequate staffing
Similarly, understaffing is less expensive initially but very costly in the long run. You must have people in place to efficiently but effectively run your business. A little boost in cash can help you add those extra hands to get all this work done.
In growing businesses, the cash they need is usually right there, just around the corner when the next big project pays or the inventory finally gets shipped. In these instances, it just takes a bridge to get from one place to the next, but that bridge can really speed up the progress in putting processes into place that help the business in the long term.
If you can relate to these struggles, please browse our website at 12five.com to learn more about some strategies we have that can help.