Make no mistake; cash flow is king for modern, small businesses.
Referring to the flow of money in and out of your accounts and the net difference between incomings and outgoings, cash flow has never been more important to the growth of your business. With consumer spending down in the UK and the nation’s growth forecast having been reduced to just 1.7% for 2017, it is crucial that entrepreneurs maximise the flow of capital that runs throughout their business.
Managing it online a key component of this, but it is by no means the only one. Here are some tips on how to manage your cash flow in 2017:
1. Create a Business Model That Optimises Cash Flow
Before you begin to think about managing cash flow, you will need to determine a viable business model that optimises it in the first place.
According to Market Invoice, one of the best options in the modern age is to consider factoring. This technique requires you to sell your accounts receivable to third-party investors, enabling you to negate potentially difficult 60 or 90-day invoice terms and bank instant capital. The debt is only short-term, however, as you simply repay the investors once your client has paid.
This model helps you to optimise your cash flow and working capital at any given time, without compromising on the delivery of your product (or service) or encumbering the venture with long-term debt.
2. Use Apps to Manage Your Cash Flow Remotely
With a working model in place, the next step is to access the online tools and mobile apps that offer you instant access to your cash flow data.
Apps such as Pulse are particularly helpful, as they recognise cash as the heartbeat of your venture and provide real-time metrics that enable you to monitor this.
With multiple cash flow views including daily, weekly or monthly charts and a currency conversion tool for internationally focused brands, Pulse provides an accessible and purposeful platform from which you can check on the status of your cash flow at any given moment.
3. Adopt a Proactive Approach
Even with a viable business model and a mobile cash flow management app, you will still need to adopt a proactive approach to managing your cash flow. After all, technology and systems are only ever as effective as the individuals who operate them, and failing to monitor your cash flow manually represents a potentially huge oversights.
So make it a priority to review your cash flow on a daily basis, using the tools at your disposal to ensure that this is maximised and giving your venture the best possible chance of success.
With the right tools in place you may want to delegate this, of course, but the key is to maintain a keen eye on your cash flow on a frequent basis.