Small businesses are important to the U.S. economy. They employ more than half of the workforce and have created about 65% of all jobs since 1965. For additional perspective, consider the following small business statistics:
Small businesses often struggle with cash flow. Many small businesses actually anticipated large profits in the year they had to close their doors — they didn’t have enough cash coming in to cover their expenses before they had a chance to realize their not-so-distant opportunities. While improving cash flow through small business loans can be a good option for many small businesses, it isn’t a solution that is available to everyone.
In the following we’ll review 15 ways to boost small business cash flow (which are great tips for all small businesses).
Business is a game of revenue, profits and expenditures, and here are four ways a small business can increase cash on hand:
The good news is that there are a myriad of strategies you can implement to improve your cash flow that aligns with each of these opportunities.
Any steps you can take to shorten your receivables will boost your cash flow. Since many small businesses land in the trap of playing banker to their larger customers, it’s important to think through your receivable strategies.
Small businesses can earn more without selling more. Think strategically about evaluating your pricing strategies and managing your cash more effectively.
Maintaining a healthy cash flow is supported by slowing down outgoing cash. Implementing smart strategies to hold on to your cash as long as possible can help you during times of slow sales.
While controlling spending seems like a no-brainer, many small businesses struggle with evaluating ways to control spending on an ongoing basis.
Running a small business isn’t easy, but it can be very rewarding. By implementing some of the above strategies, small businesses can improve their cash flow. In addition, loans and credit cards can also offer cash flow relief when they are used intelligently. The key to financial success is to keep an eye on all opportunities to improve ongoing cash flow so your small business can weather the highs and lows of cash without the need to take on burdensome debt.
About Breakout Capital
Breakout Capital is committed to responsible lending. We believe it is better for you to keep your business and grow it responsibly than set it up to fail with insurmountable debt. Please contact us today if you’d like to partner with us.