In a recent newsletter from the Business Development Bank of Canada, the BDC outlined 7 tips for entrepeneurs who want to improve their cash flow. We thought they had some great ideas that our clients might find useful, so we decided to share a brief summary with you here.
Here is a brief overview of their tips:
- Develop a cash-flow planner to track your cash throughout the month.
- Closely monitor financial statements you receive from your accountant.
- Look to relationships with your customers and suppliers, to ensure you are receiving money and paying bills reliably.
- Actively pursue customers who have not paid old bills.
- Focus on managing your inventory to prevent “dead weight” and keep product moving through your stock regularly.
- Use debt to avoid sinking too much cash into long-term purchases.
- Identify inefficient or wasteful processes and try to streamline your business operations.
Read the original article.