A recent article, 3 Simple Ways to Smooth Cash Flow For Your Small Business by Brian Sutter says that money helps run your business smoothly. Without adequate cash, your business processes can be delayed or hampered. While cash flow problems are inevitable, some businesses are able to minimize them.
Here are three ways to run your business in a way that minimizes cash flow stress.
- Create a projected cash flow.
This is one of the most efficient ways to forecast and plan for cash flow crises before they occur. It also helps you in decision making. For instance, if you open a second location in Executive Office Space Lake Mary, how will the books look in six months? How will they be affected if you hire two additional employees? A good projected cash flow can enlighten all those critical decisions.
- Work closely with your Accountant.
Accountants are perfectly suited to help with this. As managers of the books, they have clear cut ideas about how cash is moving (cash inflow and cash outflow), and what might be done to at least minimize cash flow pinches. So work with them very closely.
- Be tough about overhead costs, especially fixed overhead costs.
Overhead costs can be a substantial contributor to cash flow problems. So the lesser your overhead costs are, the better you can adapt to a cash crunch.
One example to keep overhead costs low is staff. Look to freelancers to get things done—it’s far easier to put a freelancer on break than to terminate a full-time employee. Another example, instead of renting a commercial office space, you can rent a shared office space to reduce your rental expenses.
With efficient planning and management, cash flow problems can be minimized enough that they won’t intimidate your business, much less your personal assets. Looking for workspace solutions in Philadelphia to fit in with your budget? YourOffice Philadelphia offers you a wide choice of office and workspace solutions: flexible office space Philadelphia, team office space Philadelphia and virtual office packages. You’ll have access to a complete array of office support and concierge services as well as state-of-the-art business technology.
How do you manage your cash flow? Let’s see your comments below. You can also visit us on Facebook and Twitter.