When money is tight, you might think the only option you have to improve your business cash flow is to secure a loan. But there are more disadvantages than positives to doing this and at Tradepay, we always advise against it.
But in order to make our argument a bit stronger, we’re providing you with five awesome ways to improve cash flow for your business without taking any serious risks. You’ll be able to enjoy peace of mind when you see a positive bank account instead of red numbers and loan bills.
Just remember that there’s a difference between cash and profit in a business. Don’t focus on raising prices just yet. This can hurt you in the end if you don’t have the customer base you need to support increased pricing. Instead, focus on ways to keep less money coming out of your bank account while still growing your business.
Maybe we’re a little biased but let’s start with our favorite way to increase business cash flow – Tradepay! With Tradepay, you’ll be able to purchase the same products and services your business needs, but at a fraction of the cost. Here’s how it works.
When you buy services or products from businesses on Tradepay, you’ll pay a fair price but in only 60% cash. The remaining 40% is paid for in Trade Dollars, Tradepay’s virtual currency. You receive Trade Dollars by either making sales on Tradepay yourself or taking out an interest-free Trade Dollar loan.
Getting started on Tradepay is easy. Just start your company profile page, browse for companies that can sell you the products or services you need, and complete the transaction right on the Tradepay website or through the business’ website. You’ll get what you need but because you’re saving nearly half of what you would have spent elsewhere, you’ll have extra money for marketing, payroll, or to keep in your business account for a rainy day. If your business has poor cash flow, this is one of the easiest ways to stretch your money and increase your business cash flow without sacrificing business necessities.
Whether you’ve been with your suppliers for a month or ten years, it never hurts to take the time to shop around and make sure you’re getting the best deal. If you want to stick with your current supplier, take a moment to see if they can offer you discounts for making early payments or by signing a contract for so many units or months of service.
See if they have a referral program where you can get a free month of service or so many products at no charge once you meet their criteria. Always speak to someone in person regarding discounts. This isn’t something you should shoot over in an email.
Also, make sure you have a relationship with whomever you’re discussing discounts with as well. If Jane in accounting doesn’t know who you are, you’re probably wasting your breath. Just remember that every dollar you don’t spend on supplies stays in your account and can help create positive cash flow at the end of the month.
Many businesses are scared to stray from the traditional workplace model. But with today’s technology, work for your business can be done just about anywhere on the planet. If you’re able to find a way to get a job done without having to employ someone for a full 40 hours a week, you can save yourself plenty of payroll budget.
While there will probably be some jobs you can never outsource, depending on the industry your business is a part of, you can almost always outsource website design, marketing, data entry, and other clerical duties.
We don’t want to be the force behind you letting great employees go though, so before you give someone the bad news, see if they offer a different skill set that can be used elsewhere in your business to secure new clients and improve cash flow from other departments.
You can also consider outsourcing if your business is growing and you think it’s time to hire a new employee. Ask yourself first if there’s a way to outsource the work before placing a help wanted ad.
This might be a stretch if you’re having business cash flow problems but if you’re able to meet your monthly financial needs and still have plenty left over, it might be better for you to invest this money in a high-interest savings account or other interest generating option.
This can be risky as you may not have access to these funds for several years. But if you play your cards right, you can find yourself with a decent chunk of change for simply managing your money correctly.
If this is an option, set yourself a goal, deposit the money, and forget about it until you’ve reached enough in interest to accomplish your set goal. Examples include saving enough to remodel your store, securing enough funding to start the process of opening a new location, or revamping your brand through a new website and marketing plan.
Let your customers do the work for you by rewarding them for their loyalty. Start a reward program that provides your customers with a discount or great prize for bringing in new customers.
It’s a simple program to manage and can be started for free. Make sure you’re consistently spreading the word and not making the program too difficult. Keep it simple, don’t overthink it, and you’ll find yourself with a string of new customers in no time.
With your increase in business cash flow, you can then invest in some of our other suggestions, like placing your excess cash in a high-interest savings account.
Whether you choose to go with one of these options or all five of our solutions to cash flow problems, you’ll be taking a positive step towards improving your business cash flow. With more money in the bank, you’ll be able to either ramp up your inventory or provide more services.
You’ll also be able to market to a larger demographic, boost sales, and continue to grow your cash flow. Positive cash flow can provide you with opportunities you never dreamed your business could reach for. Now’s the time to do what you can to boost your business cash flow and conquer all your goals. Make sure you start by checking out Tradepay and signing up for your free profile.
