Entrepreneur.com outlines 50 ways to save money in your business.
Here are some of my ideas on how to increase your cashflow:
- Call in your Account Receivables the moment they’re due. Waiting to collect your AR reduces your cash flow substantially.
- Collect a portion of the payment up-front, prior to services being rendered.
- Stretch out the amount of time you take to pay your Accounts Payables (AP). Pay at the last moment possible to maximize your cashflow.
- Review your AP records for overpayments and ensure that all sales taxes are fully recovered.
- Empower your employees to develop cost-cutting operational efficiencies.
- Strive for increased operational efficiencies in order to reduce inventory. Just In Time (JIT) or Lean manufacturing processes reduces inventory and increase cash flow.
- Liquidate excess inventory. Excess inventory is a double-negative because it not only requires extra warehousing/overhead/insurance costs to storehouse, but it also ties up cash flow.
- Take advantage of federal programs like IRAP and SRED.
- Barter with companies to achieve trade efficiencies through small business bartering.