Running your own business can be extremely rewarding but there will always be times when it will be quite the opposite. Depending on the business, many factors will determine the success or failure of a small enterprise, however, the most common is cash flow. Outlined below are three very simple solutions to cash flow problems to help make your business ownership more rewarding.
Without the regular inward flow of cold, hard cash any business will die a natural death. Many small business owners know too well that operating in an uncertain economic environment means customers take more time to pay. When most small businesses set their terms at seven or fourteen days payment, if these terms are consistently ignored by customers – who may also be struggling to get their own customers to pay – it is not only dangerous to the health of the business, but the associated stress is a danger to the health of the owner.
If you’re finding it hard to get your customers to pay you on time, there are some simple solutions:
On the flipside, if your customers are dragging the chain, you could be having difficulty paying your bills. Knowing what it feels like, take the upper hand and explain the position to your creditors. Most will be happy to work out a payment schedule so everyone wins.