How you can get cash into your business today

There are times when business owners’ look at their bank account and worry about how they are going to pay the overheads this month. There are times when a businesses cash flow will keep business owners awake at night. Sometimes it is hard to see the proactive way forward to resolving cash flow problems.

Here we give you 5 straightforward steps to take today to ease your cash flow worries over the coming weeks.

1. Increase your prices

When is the last time you increased your prices or had a “price adjustment”? If this makes you worry, don’t! If your customers like the service or product you provide they won’t mind you having a “price adjustment.”

Before you dismiss this idea, work out the figures. Know that people don’t always buy from the cheapest company, many people know that “they get what they pay for.”

2. Call customers who you’ve already invoiced

A few days after invoicing your customer, give them a call to confirm they have received your invoice. Ask them if they are able to make payment today. If they can’t, ask for the payment date, make a note and use this information to ensure your wage and overheads are covered. This is a good step for effective credit control.

3. Send aged debts to a debt recovery company

How many customers are overdue paying your invoices? Are there any customers who are not responding to your requests for payment, who are also late paying? The ones who have not paid you or who keep promising to pay but don’t, send their details to a debt recovery agency to contact them.

This may sound extreme, and you may worry about about losing your customer. However, we have found that most of the time people just need a firmer chase from a third party to encourage payment. We also find that many of the debtors we chase for payment often ask us to chase debts for them too.

This is a great way to get a cash flow boost.

4. Get rid of customers who are costing you money

Do you have any customers who take up too much of your time for the amount of money you are earning? If you have a nightmare customer who you dread speaking to, now is the time to say “thanks, but no thanks,” and move them on. If your customer is costing you more money and stress than is needed, don’t be afraid to move them on. “When one door closes….”

5. Contact existing customers

It is easier and more cost-effective to sell to your existing customer base than it is to attract new customers. So call or email your existing customers and ask for more work or see if they need more of your product.

The main thing is to be proactive and do something about your cash flow to get cash in to your business.

Worrying about it won’t change anything, doing something about just might.

For more in-depth key strategies and solutions to get cash in to your business, register for a Business Masterclass with Steve Bridson, Buckinghamshire’s best business adviser and Paula Bolton, qualified mediator and debt recovery specialist.