These seven ideas can provide relief and ultimately change your cash flow:
— Tighten inventory. Make sure your inventory turns over at a regular pace.
— Bill early and often. Keep a detailed receivables report and act immediately on overdue accounts.
— Don’t expand until you have the cash to support growth. Figure out what your projected expansion will cost and make sure you have the cash to cover it.
— Have a cushion to cover a cash flow crunch. If you’re prepared for rough times, you can ride them out.
— Stretch out payables. If suppliers want their money more quickly, ask about discounts for early payment.
— Consider raising your prices. Check out what the competition’s doing and make sure your prices or rates aren’t too low.
— Comparison shop. Start using the Web to get the best deals.