To ensure you have a fluid cash flow, without large outgoings when income is limited, keep in mind these easy steps.
Negotiate terms with your vendors and maintain a continuous communication with clients and suppliers alike in terms of payments. Take advantage of any 30-day grace period you may have.
You may offer small incentives for prompt payment but keep it low.
Approach your bank for a line of credit – it maybe small but can be a safety net when there is a financial problem.
If you have to supply a custom order ensure you receive a deposit so if the order is subsequently cancelled you have covered your costs.
Constantly monitor your inventory. If a product line is not performing well, consider returning it to the supplier or discounting it to make room for better performing items. ‘Dead stock’ ties up finances.
How do you manage your cash flow?