Many promising companies became bankrupt because they were not able to manage their cash flows. Everything goes well, while sales are growing and the market is stable, but as soon as something unexpected happens, it’s time to pay the bills.
Here are 5 key steps to increase the amount of money in circulation:
If you have a stable and large customer base and you have a significant niche in the market, you can raise the price of your goods and services to earn more. You do not need to increase the price several times, but even a small increase will substantially increase the flow of cash.
Cost of production
If you can reduce the cost of necessary raw materials, labor costs and sales, you will receive additional income.
Examine all expenses and cut down on extra daily expenses. Reducing operating costs will significantly reduce the outflow of cash from your account.
If you have a production or store where there is a warehouse, you can reduce the amount of products stored on the shelves. Leave the optimum stock you need for customer orders and you will save money.
The people who take on your debt reduce your amount of cash. Make a few phone calls and send a few letters to speed up the process of paying off the receivables.