Cash is like oxygen to the entrepreneur. In the late 1980’s I worked for a small business that was constantly short on cash because of too much inventory and high marketing costs. The company president developed one rule we followed above all others: When deciding which project to do next, choose the task closest to generating cash.
This proved to be a very useful formula I’ve followed in my own business for the past 25 years.
Cash Flow Strategies for Entrepreneurs
Here are some cash flow strategies nearly any small business can implement:
- Continually re-evaluate priorities to determine those which are bringing you money quickest
- Offer incentives for a second purchase at the time you complete your client’s first order transaction
- Find a way to sell your product or service on a renewable or subscription basis
- Offer a few percentage points discount for early payment on large receivables
- Offer discount for repeat-business clients to prepay for entire year’s worth of service
- Pay for as much as you can via credit card to gain 25-30 days additional cash flow, while accruing reward points on your credit card
You can learn more small business and entrepreneur cash flow tips in this article.