To increase positive cash flow for your business, you need to be flexible and willing to try out new things.
Cash flow is an essential financial metric to measure a business’s performance and financial health. Typical of any business, cash constantly moves in (inflow) and out through sales, paying suppliers or salaries (outflow). Keeping your cash flow positive; a business with more inflow than outflow is essential to its health.
To increase positive cash flow for your business, you need to be flexible and willing to try out new things. These are five ideas that can help you.
1. Reduce unnecessary outflows
It sounds so cliche, but this idea helps. Reducing unnecessary expenses involves having a detailed assessment of your operations, agreements with suppliers, etc. It would be best to reduce unnecessary costs to keep a positive cash flow—the less money flowing out of your business, the better.
2. Clear out old inventory
You might be losing on them, but what is the need to have old stock still lying around. Liquidating excess inventory or selling at a discount will help you keep cash flow. Clearing out old inventory can finally give you closure on the old stock, learn why you didn’t make sales on them earlier, and strategise better for new ones.
3. Customer retention
Businesses often focus their marketing efforts on customer acquisition, but this is more expensive and keeps your clash flow negative. While it is essential also to try to acquire more customers, retaining the ones you already have is an excellent way to boost a positive cash flow.
Of course, new customers are important, but customer retention is an excellent way to acquire more for your business.
4. Offer a subscription for your products
With subscriptions, people buy regularly and give your business a steady stream of inflows. If you have products or services that you regularly offer, adding a subscription option to them makes it easier for customers to spend money, increasing your cash flow.
5. Seamless payment options
Making payment seamless and easy for customers is an excellent way to increase sales and cash flow. Customers don’t have to experience any difficulties after completing the buyer’s journey and are ready for purchase. Having a tedious payment process can make you lose sales.
Partnering with Fincra can help you solve this problem. With Fincra’s collection options, businesses do not worry about how to collect payments. With Virtual Accounts, companies across Africa can receive payments from anywhere. Fincra has also built APIs that businesses can use to get paid from just anywhere.
Fincra also has a new payment link feature to help businesses sell faster.