8.5 Ways to Increase Cash Flow
A group of intermediaries within our nationwide network of advisers (The Business House, Inc) has released a strong recommendations list on how to increase small business cash flows. Following these tips can most certainly boost a company’s business valuation. Below is a recap of the key points:
Cash Flow is KING: Cash In – Cash Out = Cash Flow
- Organized Record Keeping (we harp on this topic in other posts)
- Collect Money and Fees Upfront
- Collect Accounts Receivable
- Audit All Expenses Yearly
- Extend Supplier & Vendor Debts
- Examine Employees & Make Personal Cutbacks
- Review Capital Assets
- Decrease Non-necessary Spending
- Inventory Management & Transportation Costs
Every good business owner knows that cash flow is the life blood to their company’s existence. When positioning a company for sale, positive cash flow is critical in determining a company’s fair market value. For specific breakdowns of each area listed above, please click the link provided above.
Know your value. Know your business.