Pointers to Improve Your Startup Cash Flow
Finding a balance between aggressive selling and effective cash flow management is very important to sustain your business over the long haul. The reality, however, is that many entrepreneurs are more focused on achieving the top line or sales and very relaxed on collections of unpaid invoices. Aside from cash flow factoring, there are other ways to improve your cash flow and these are:
Set up Your Collection Policies
Even before starting your business operations, you should already have a strict policy on collections and your employees should fully understand this. It can be simple policy like a friendly call to remind your customers one week before the actual payment date. Having a working system helps track all your accounts and alert you of possible bad debts.
Negotiate for Longer Terms with Supplier
When dealing with customers, your negotiation stance is to get shorter payment terms, usually 30 days. However, do the exact opposite when meeting with your suppliers. Try bargaining for 45 to 60 days payment terms to give you enough time to collect your debts first.
Read 5 tips on how to quickly improve cash flow at CEO Consultant for some advice on cash flow.
