photo credit: AMagill
Obviously in business we all strive to make as much profit as we can, that's one of the biggest reason's why we go into business for ourselves to begin with. So how do you optimize your cash flow and thus increase your profits? Look below for a list of way's that i put together from an article i recently read on Businessweek.com.
- Always make sure that you are paying all of your bill's on time to avoid having to pay any sort of interest or late charges on your balance.
- Try asking for payment up front before orders are shipped out and delivered. This will enable you to avoid having to track the people down for payment later on.
- Make deposits to your account weekly rather then once a month or so, all of the payments you receive in a week should be deposited that Friday.
- Use your business credit card when going out on business lunches, meetings, trips and more. This not only free's up some more cash, but it also gives you perks later on down the road towards free thing's such as cruises, vacation's, flights, hotel rooms and more.
Invest your overflow. Once you have built a comfortable overflow, consider investing some of it to make it grow even faster for you. Letting a large sum of money sit in your bank account does nothing to accelerate growth. Talk to an investment professional and find out how you can make that money work for you.