5 Action Items for Improving Cash Flow at Your Small Business
Today we’re sharing five action items that small business owners can take advantage of to immediately improve cash flow.
1. Evaluate Your Monthly Recurring Bills
Take a look at all of the services that you subscribe to on a monthly basis. Perhaps there are a few services that you signed up to try and then forgot all about. Canceling those subscriptions may only save you a few bucks each month, but over the course of one or more years the savings can really add up.
Additionally, evaluate if you are getting the best deal on the subscriptions you do use. For example, perhaps you have signed up for accounting software really made for large corporations. Could save money by downgrading to a lower cost alternative? Find out!
By simply reducing your monthly bills you improve cash flow without causing any headaches.
2. Sell Unused Equipment
Walk through your location and see if there is any equipment that hasn’t been used for a long time. If so, consider selling off these items to add cash to the bank for a rainy day.
3. Apply for a Business Line of Credit Before You Need It
Rieva Lesonsky, CEO of GrowBiz Media, recommends obtaining a business line of credit even if you don’t need one. She says, “a business line of credit is a good insurance policy against cash flow problems.”
If you start the approval process today, you’ll have the money available when you need it.
At ARF Financial we can offer small business owners a business line of credit up to $725,000 with no collateral required. You can be approved within days and have access to five separate loan drafts over four months. Learn more about obtaining a business line of credit today by clicking here.
4. Consider Raising Your Prices
Many people buy based on value plus price rather than price alone. If you provide a premium product that is clearly superior to your competitors, consider raising your prices.
If you run a service based business such as a restaurant, hotel, salon or retail store you can easily test incremental price increases. If your new pricing strategy doesn’t work, you can revert back to your old prices quickly.
Before raising prices, remember that it’s important for customers to clearly understand why your service or product is priced higher than competitors. What is your value proposition? Higher quality ingredients? Superior customer service? Larger portions? Experts on staff?
Your value proposition, no matter what your pricing strategy, should always be evident.
5. Invest Now to Grow Your Business
If you want to improve your cash flow for the long run, you may consider investing in the growth of your business.
Perhaps buying new equipment, conducting building renovations, purchasing liquor licenses, adding a second location or adding a bar could help you improve cash flow for the long run.
You can easily take out a small business loan to help pay for the upgrades so that you don’t have to tamper with your current cash flow. At ARF Financial we offer FDIC-insured working capital loans for such situations.
Making an investment in the long-term success of your business today will pay dividends for years to come.
Would you like to explore financing options to fast track your business growth and improve cash flow? ARF Financial is a lender you can trust. We have a quick and simple funding process. Contact us today to learn more.