Keeping Your Cashflow Strong in Challenging Times
Small businesses are especially vulnerable during economic downturns.
With ongoing overheads and salaries to cover, proactive planning is essential to maintaining financial stability and business continuity.
Key Strategies for Healthy Cashflow
Invoice early - Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.
Chase payment - Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter - talk to clients and chase invoices.
Talk to suppliers - A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.
Review Inventory - Can you find a cheaper supplier locally to avoid the shipping costs or discuss alternative products that allow you to reduce expenses?
Review costs - It’s also a good idea to do a general review of expenses. Business costs can creep up, and it’s a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.
Talk to bank or ATO - If cashflow is tight, make sure you have conversations early so you have everything in place to see you through.
By taking these steps, you can minimise financial stress and position your business for long-term success.
Need help implementing these strategies? Get in touch with us today.
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