14 Ways to Instantly Boost Cash Flow

For many business owners, the summer months can come with a dip in revenue, causing major cash flow problems before the frenzy of the fall season.  With this in mind, we put together a list of 14 ways to infuse your business with cash immediately. 

This list is about fundamental changes you can make in your operations, accounting, mindset and behaviors that will enhance your performance as an owner, and your experience of your business. 

Desnoyers CPA Boost Cashflow

As with most money-making opportunities, some of these tips require some sacrifice.  But ultimately there are a lot of little changes you can make right away to improve the cash flow of your business. 

1. Offer an increase in products or services to current clients. 

This is probably one of the easiest ways to secure cash fast. These clients already love what you’re selling! They already believe in your abilities to meet their needs, and so it is not difficult to offer them additional value.  You are not “upselling” them, you are offering more of your wonderful goods and or services.  

You can send an email blast, or pick up the phone, or put up a sign to let your customers know that you can give them more than they’re getting from you. Taking this step can quickly and significantly impact your balance. 

2. Run specials through sites like groupon to reach a new audience. 

While groupon and similar “deal” sites can sometimes have drawbacks for business owners, the good thing about them is that you are able to reach a new audience. Groupon specifically boasts a 90% return rate for customers who come to businesses using their site.  Though the stat may or may not be exaggerated, using such sites are something you can consider to boost your cash flow. 

But it is important to note that the use of such deal sites should be carefully considered so as not to undervalue your products to your new audience.

3. Increase products or services. 

Offer more. Simple, right? While offering more is not as simple as it sounds, you should take inventory of your goods and services to determine where you can provide more. If you sell a product, can you add accessories that enhance the user experience? If you offer a service can you add on additional resources than elevate your client engagement? 

4. Raise your prices. 

It’s easy, especially when you’re new in business, to find yourself broke but exhausted. You take on demanding clients and you undersell your talents or products, leaving you frustrated, resentful and scraping for pocket change. Sometimes raising your prices is the best way to beat the cycle of exhaustion and negative cash flow. 

You may be hesitant to raise your prices believing that your customers or leads will respond negatively.  While change always has its hurdles, the benefits of reasonably increased prices are mutually beneficial. As an owner you are less rundown and resentful because your expenses are properly taken care of, and provide more value for your customers are a result. 

5. Renegotiate client contracts. 

This may seem like a continuation of number 4, and in some ways it is. Working with clients who are not paying you what you perceive as the accurate value for your work is not good for either party.  In addition to raising your prices, consider renegotiating your contracts to match the value of what you’re providing. 

6. Increase marketing. 

For some small business owners marketing sounds like one big unnecessary expense, that equates to some mystical thing called “impressions,” with a long term and sometimes murky ROI. However, in a marketplace where there could potentially be one of you on every corner, or a bazillion of you on every google search, marketing is not a luxury, it is a must. 

With online tools, marketing also doesn’t have to be overly expensive.  While your business may not be able to afford to retain a professional marketing agency, there are many sites that provide the basic marketing needed to have both an online and real world presence. Sites like Fiverr, Vistaprint, Canva, etc. provide template based tools for small business owners. 

7. Automate invoicing and billing. 

We have an entire blog post about this specific point, but the condensed version is this: if you don’t have to spend time chasing down payments, your cash flow will run a lot smoother. 

Allowing customers to delay payments can be very harmful to your cash flow, and put you in a downward spiral. You will always be robbing yourself to pay your bills, and using the money when it finally comes in to catch up on other things.

8. Renegotiate vendor contracts. 

You may have gotten into a contract with your landlord, copy machine company, printer, etc. that seemed like a deal at the time, but has become too great an expense to maintain.  Rather than discontinuing the services, see if you can renegotiate the contracts. 

You may want to reduce the services you receive, you could ask for older equipment that is in good condition, you may also want to consider if you need as much space as you’re leasing. Things like this can add up and free up cash relatively quickly for your business.

9. Track your profit and loss diligently.

One of the fastest ways to lose money, is to take your eyes off of it. Having a spending plan for both your personal and business expenses is crucial to ensuring a healthy cash flow. 

Using tools like Quickbooks to monitor money coming in and out can help you identify areas where you may want to reduce spending and raise prices. Whatever accounting software you are using, you want to run reports to make wise decisions about your business finances.

10. Review/revise your billing schedule. 

If you bill your clients near the end of the month, but pay your employees, contractors and other vendors at the start of the month, you may need to adjust your schedules. This creates a situation in which you are spending money before you have it, thus reinforcing a cycle of negative cash flow.

11. Ask for deposits before providing services or goods. 

Getting money up front for services is a great way to boost cash. Deposits generally pay for setup fees, research and other associated costs to complete a project. Having a deposit structure for your services can ensure that you not only have cash immediately upon securing a new customer, but that you also have the cash available to begin the project.

12. Reduce your expenses. 

Reducing your spending can go a long way. In addition to renegotiating contracts, you can look at other business expenses that are costing you too much. It’s best to start with expenses that do not enhance your business or produce revenue.  We’re not saying to stop buying coffee for your employee break room, but maybe the expensive coffee shop scones every morning, can go.

13. Minimize your personal use of business revenue. 

First, it is important that you always have separate accounts for your business and your personal spending.  Swiping your business credit/debit card for personal expenses is a quick way to end up confused and stressed, especially during tax season.  

You want to pay yourself a salary, especially if you are a solo entrepreneur, in a way that is easy to track and manage. You can write checks to yourself, schedule automatic payments, or perform electronic transfers, however you do it, make sure it’s trackable. If you see that you are spending too much on personal expenses that are not servicing your business, reducing those costs can immediately give your business cash a lift.

14. Work with a professional to handle your finances. 

This is not a shameless plug for the benefits of accounting services, we promise.  However, it is important that even when using accounting software, you have a sound understanding of what your numbers are and what they mean. Lydia says this often, but it can’t be said enough, accounting software can be deceptively easy and can cause you to make many mistakes. Working with a professional, even if it’s only during tax season, or a few times a year can do wonders for the cash flow of your business. 

For help managing your business finances, check out our services page.  Desnoyers CPA, is an accounting firm that offers a wide range of services for business owners. Check out our monthly blog and join our mailing list to get more information for small business owners seeking experienced financial advice. 

Written by Desnoyers CPA

Desnoyers CPA

Known for her friendly, outgoing nature and her rare talent for financial foresight, Lydia Desnoyers has been serving individuals and small businesses in Florida since 2010. After earning her Master’s Degree in Accounting from Nova Southeastern University and her Bachelor’s Degree in Accounting from Florida State University, she became a Certified Public Accountant and a Certified Fraud Examiner.

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