Once your small to medium-sized enterprise is up and running, maintaining the momentum of this development is key to the longevity of your business. Standing the test of time in the face of an impending recession and on the heels of a worldwide pandemic in order to serve your consumer base is no small feat. Cash flow is often the driver of this resiliency.
In Melissa Houston’s latest Forbes article, “Cash Flow Tips To Keep Your Small Business Afloat,” she dives deep into how sustaining cash flow in a small business is often the difference between that business thriving and surviving. Houston explains,
“Good cash flow management can boost profits by helping business owners take advantage of significant savings opportunities such as discounts on bulk purchases. Understanding your cash flow position can also help you better negotiate on creditor payments which will improve relationships with your suppliers as well. With the complexities of running a small business, cash flow should be one of the first topics business owners pay close attention to.”
Moving past the initial stages of starting a business and into the realm of nourishing a business towards big-picture goals is made possible by way of astute financial planning. Houston lists a myriad of strategies to begin, or continue, this journey. These steps include but are not limited to,
- Fine-tune the accounts receivable process
- Utilize short-term financing options
- Emphasize what makes your business profitable
- Audit and eliminate unnecessary expenses
Once a system for increasing and tracking your company’s cash flow has been put in place, it will become second nature. Incorporating this as a practice is what will set you apart from the competition during your journey to going global.
Explore our various mentorship offerings to access community and groupmind every step of the way. You do not have to go it alone with wegg® in your corner.