Developing a Strategy for Optimal Cash Flow in Small Businesses

Benjamin Hirsch Insurance provides business insurance for businesses of every size. We’re proud to work with such people on daily basis. As a locally run business ourselves over the years we’ve been able to develop some “tricks” to help cash flow. If you’re a business owner who needs to keep an eye on cash flow, then we implore you take a look at some of these tips and apply them to your business model. In addition to utilizing this advice, purchasing business insurance will also help protect you from the financial risks associated with unforeseen accidents and workplace mishaps.

Some small businesses have a small staff, and in some cases are operated by single entrepreneurs who work on a consulting basis. When your business and income is contingent upon project completion and/or new business ventures maintaining cash flow can be unpredictable and at times probably even stressful.

Check out some of these suggestions for improving your cash flow situation:

  • Bill your clients regularly. When you take on a new project, make sure there is a clearly define payment installations and make at least part the work completion contingent upon payment. Payments should be scheduled regularly and work should halt if a payment is missed (or delayed without notification).
  • Incentivize them! Give your clients an incentive to pay promptly. Perhaps it’s a discount, additional service (Example: writing and extra blog post because your client has never missed a payment) or coupon they can redeem in the future. When cash flow gets tight, there can be advantages to offering such incentives for “fast payers.”
  • Avoid clients who are slow payers. This may seem like an obvious statement, but it’s entirely true. If you’re working on contract-based work with someone and they repeatedly delay their payments, you can opt to end the relationship. If completing their work impedes your ability to find other clients, then ending the working relationship is an option, too. Before you accept and assignment with a new client, it’s good to take a peek at their financial credentials.

Having business insurance in New York will help to protect you should you run into a situation that’s beyond your control. At Benjamin Hirsch Insurance we want to help you be best prepared for the trials and tribulations of being a small business owner. Making sure that your business operates smoothly will allow you to have peace of mind and give you the confidence to take advantage of any opportunity for growth that comes your way. Give us a call today and we’ll review the ins and outs of business insurance with you.