Cash flow tips for small business are always helpful because cash flow is crucial. That’s why we’re sharing tips from several experts we asked about how to optimize cash flow and make sure your business is booming.
Today we have a true lifelong entrepreneur and small business expert: Carey Ransom, CEO of RealPractice, a small business that helps attorneys and law firms to “realize the potential of their practice.” Besides that, he grew up in a 139-year-old family business (also a small business).
Here’s Carey’s cash flow tips for small business:
- AVOID "VENDER-BENDERS:" Get terms from your vendors as soon as you can. Establish trust and pay them on time, so they are there when/if you need them for help.
- GET IT UP FRONT: Get some or all of your customers' payment up front. Depending on the business, you can get a deposit or set up your service as a pre-payment. That helps cash flow.
- GIVE CREDIT WHERE CREDIT'S DUE: Give clients incentives to pay with credit cards and pay for longer periods vs. just transactions. If you have a monthly service, give them an incentive to pay for the full year in advance vs. each month.
- GET YOUR OWN CREDIT FOR DRY SPELLS: Develop a relationship with a local bank to help you with managing seasonal cash flow changes. As an example, if you do more business in summer than winter, make sure you have some credit available during the winter if you need it. Your expenses might not match your revenue every month, even if you are very profitable over a full year.
- DON'T JUST LET IT FLOW: The closer you watch your cash inflows and outflows, the better you can manage your growth and opportunities. You will see how you can fund new opportunities/new investments and what impact it can have (positively or negatively) on your cash flow.
Thanks, Carey, for the valuable tips on how to optimize cash flow! If you’d like to contact Carey directly, please see below:
Carey Ranson, CEO
Santa Ana, CA
Stay tuned: we’ve got more tips from the pros coming your way. And don't forget to check out our concise overview of top cash flow tips for your small business!
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