Most small business owners are considered entrepreneurs. If you fall into this category, you probably would not mind making an extra $10,000-$20,000 a month with your business. Entrepreneurs use their current business models to grow their company to extremely high profit levels. If you are currently making only four to five figure annual revenues, it might be time to bump up that cash flow and improve your bottom line with Summit Financial.
But, it sounds a lot easier said than done right? Well, yes, of course. When you write for a business website like BusinessFirstFamily.com, it becomes easy to write a lot about entrepreneurship, start ups and small businesses. We are always writing and researching to help our readers take their companies to the next level, and make more money. Read on to learn more for helpful cash flow tips to drive business growth.
So, this will not be much of a surprise. We have compiled a solid, helpful list of five ways to discover hidden profits within your current business. These strategies have worked for others in the past and they can work for you too.
Well, who has not read about the wonders of marketing your business online. Almost every other website is talking about how to make money online, the next great online business idea, business app development or public relations marketing tips. But, what about all the people you serve offline?! Many times, the most powerful influence on sales is through offline marketing tips like word of mouth and references from customers. Simply asking your current customers to recommend you can be a big help. Even if you have just one client or customer, it still works for start ups of any size!
Low Interest Credit
Apply for low interest credit cards. Entrepreneurs are familiar with taking on a little debt to make initial investments and reap the rewards. They are the risk takers for a reason. Sometimes, those risks turn up sour and end up with interest charges that are accruing. With business credit cards by Chase or Capital One, you can enjoy up to 15 months of 0 percent interest. This could lead to over $500 in savings per year for a small business. Of all the cash flow tips available, this is the fastest and cheapest.
Upgraded Payment Processing
Upgrade your payment processing. When did you start accepting payments? Odds are you might be better off accepting credit cards through another merchant. Plus, there are so many new payment methods to accept like ApplePay and BitCoin that can open up your customer base. There are several ways to save, including lower chargeback fees or processing fees based on volume. Or, you can always call up your current provider and try to negotiate a better deal. After all, if you have been a good merchant partner, don’t you deserve it?
Invest in recruiters for hiring. Entrepreneurs can struggle tremendously by hiring the wrong people. Without the appropriate talent, degree and knowledge, any employee can struggle on the job. To help big and small companies find the right people, they turn to staffing agencies or recruiters. At the end of the year, your turnover costs can drop significantly and increase productivity, leading to a direct positive effect on cash flow.
Intellectual Property Sales
Sell intellectual property. Any business lawyer can tell you about the money being made in licensing, trademark and patent ideals throughout the United States. If you have a unique process, it may be time to consider selling the actual process instead of the product. This opens up the company to sell to other companies, adopting a B2B model in addition to the one currently in place.
Develop A Cash Flow Analysis
In order to maximize your cash flow, you are going to need to know exactly what you are working with. That is where a cash flow analysis comes in handy. The best cash flow analysis forces you to take a close look at profit and loss statements in order to accurately predict the future financial health of your business. If you want to conduct an analysis of the cash flow for your business, make sure to include these three areas of activity:
Keep track of all financial information pertaining to these three areas, and include them in your analysis. You will be certain to have an effective cash flow analysis if you properly assess this information.
Hopefully, you have found a few cash flow tips (at least) to help you generate more profits in the future. These work for companies of all sizes and we would love to hear about how they help you too. Was it your offline marketing, new credit card application, merchant processing provider, recruiting agency or intellectual property protection? Also, please let us know if you have any ideas of your own.
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