4 Cash Flow Strategies That Work For Startups and SMEs
Are you tired of how unstable your cash flow can be? One minute your revenue is growing, the next it’s gone and now you have to figure out how to go by the next months?
If this is happening to you, you might have a case of the feast-or-famine cycle in your hands.
Sure the pandemic has hit a lot of Philippine startups and SMEs but many businesses created new opportunities to venture as well. Regardless of which industry you belong to, one vital way to avoid the cycle is to manage your cash flow well.
In this entry, let’s talk about 4 strategies to help you improve your cash flow.
1. Leverage The Use of Technology
First thing to get yourself on top of your cash flow is to use the right technology to keep tabs on the money coming in and out of your business. With the correct tools, you can have powerful insights to plan on potential ups or downs of your startup or SME/
If you’re worried about what finance tools to use or where to even start, book a free consultation with us. We provide free advice for business owners like you in these situations. 2. Get Your Receivables Fast Getting paid on time is an important part of keeping you cash flow positive. Plan to send your invoices early. This is especially noteworthy for B2B businesses whose invoice might have to go through layers of internal bureaucracy before the money gets released.
Another way to get your payment faster is to offer various payment methods as much as possible. If there's one convenience you want to give to your clients other than your service, it’s the convenience when paying you.
3. Offer Deals To Collect Payments Sooner Give your clients a reason to pay you earlier.
If you don’t want to wait for the usual net terms to pay out, then offer your clients a discount if they pay early. For example if you’re a subscription-type business, a good way to implement this may be offering a percentage off if they pay for a whole year instead of monthly.
Filipinos love promos, so you can keep that in mind. Before you launch your offer, however, make sure you won’t incur losses that will backfire on your business.
4. Prioritise doing Sales and Marketing To ensure a steady flow of clients and avoid the feast-or-famine cycle, make it a practice to do sales and marketing all year-round. That’s right. Not when your low season is approaching, nor when you feel like it. Marketing works best when it’s really planned and sustained.
Remember keeping a healthy cash flow is essential for your business growth. And if you’re not confident you can do it well, don’t panic. The first thing you need to do is tap the right person to help you. This is an opportunity to scour your networks or if you find our insights valuable, you can hop in a call with our team.
Our onboarding process works in 3 simple steps: 1. Free consultation 2. Proposal 3. Execution We want to get to know your business and your dilemmas, and if our service is a good fit for you, then we will send our strategic proposal that will be executed as soon as possible.
No worries, even if you’re still uncertain whether you want to proceed, you still take away CFO-level advice on your business finances.
So book your free consultation here.