10 Tips For Improving Your Design Firm's Cash Flow


Top Ten Tips For Improving Your Cash Flow


1. Stick to your budget.

(If you don't have one, make one now.) The budget is part of a business plan. You want to know exactly how much to spend on each large item you purchase and when you will have the cash to do it. Your cash flow projection coupled with your forecast will give you the proper timing for making purchases. The items you have budgeted for should also be part of the business plan.




2. Bill your clients regularly.

Many business owners are so busy selling to new clients that they forget to invoice the clients they have already worked with. Put the task of billing your clients on your calendar and then stick to that schedule.




3. Get a retainer for your services before you begin the work.

If you are going to be working with a client over a period of time, you will want to request some money up front before you begin to deliver the service.




4. Give a discount for early payment.

You will be able to collect the money more quickly if you offer a discount for prompt payment.




5. Accept a credit card for payment.

Although you have to pay the credit card company for this service, having the convenience of a credit card allows the client to pay immediately. Collection is now the problem of the credit card company.



6. Use your own credit card to finance purchases but do it cautiously.

If the interest rate is low and you can pay the credit card company back relatively quickly, credit cards are often a good way to even out your cash flow.




7. Establish a line of credit with a bank.

This is relatively easy to do so long as you have good credit and it gives you a cushion of cash when things are tight. Sometimes the bank will offer a really good rate to encourage you to become their customer for other banking services.




8. Put the cash that you have on hand in an interest bearing account.

No reason to have cash sitting in an account that doesn't accrue much interest. As cash grows consider money market accounts, CDs and savings accounts.




9. Pay your outstanding bills judiciously.

Notice which vendors are willing to wait for payment and which will charge you interest if you are late. Schedule payment to maximize the cash in your account.




10. Consider getting an expert to watch your cash flow. Have someone (financial advisor, accountant, bookkeeper) available to run financial reports each month so you know exactly where you stand in your business.



By Alvah Parker
Photography by Dani Simmonds


Alvah Parker is a Practice Advisor (The Attorneys' Coach) and a Career Changers' Coach as well as publisher of Parker's Points, an email tip list and Road to Success, an ezine. Subscribe now to these free monthly publications at her website http://www.asparker.com/samples.html


 

+++

4 comments:

  1. It also helps to find the right formula or strategy for your business and stick to it. Fluctuating strategies is one of the easiest ways to waste venture capital investments.

    ReplyDelete
  2. Additional views of the new Nike Kobe 11 Elite Master of Innovation is featured, as this latest variation of Bryant’s last on-court sneaker has finally arrived at retailers.Defined by its versatile flyknit construction, the frontal Cheap KD Shoes portion of the component is rendered in a mixed palette of yellow and voltage green, while cool grey colors the remainder of its build. Distinguishable LeBron shoes elements include a leather heel patch that features a “96-03” embroidery, in addition to reflective accents gracing the Swooshes and sheath logo on the tongue.Topped kyrie shoes off a light grey-colored full-length sole unit, you can purchase a pair at select Nike retailers starting today, August 11th for $200.
    The Under Armour KD Shoes For Sale Curry Lux has now been officially revealed, as the new model is essentially a street fashion-inclined take on the signature performance basketball sneaker of back-to-back KD 6 NBA MVP, Stephen Curry.Utilizing the Curry One, the model has been revamped with premium black leather across the upper to create a sleeker and stylish LeBron 12 appeal. Tan leather accents are applied on the interior for more lifestyle flair, as the bold, yet simple design is topped off with a white KD 8 midsole unit and versatile gum outsole.This featured black leather pair, alongside four other colorways comprised in other materials such as suede, will make its debut Curry 2 at select UA stockists on August 5th for $150.
    A few weeks ago we saw special colorways of a handful of Nike Basketball sneakers as Kobe high top a part of the Nike Basketball The Academy tournament collection. While it’s pretty much impossible to get your hands on any of the shoes from Kyrie 3 the collection,

    ReplyDelete
  3. Sure I too follow all these tips for improving design firm's. It increases my skill over everyone.

    ReplyDelete