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Boost Your Cash Flow This January


Without a correct balance of revenue, profits and expenditure it will prove difficult to sustain your business. Even if you’re seeing a rapid increase in profits in the following few months, you may not be around long enough to witness them.

 

It’s time to optimise your cash flow, and here’s how:

 

Re-evaluate and fine-tune the pricing of your products

You may be concerned that sales will decrease if you increase your price too much, this will always be a possibility, however it’s best not to come to any preconceived conclusions without initially testing and discovering what the market can bear. This is the first direction in optimising your cash flow.

 

Replace old equipment and inventory

When trying to increase your cash flow you must understand that not all assets are beneficial. With old equipment taking up space and becoming inefficient it’s time to move with the lasted technology.

Managing, maintaining and repairing multiple brands and models is costly, leasing devices such as computers can therefore be cost effective, since you’ll always have the lasted technology available. In some cases, selling old equipment can also result in taxable gains, another way to boost cash flow.

 

Re-negotiate long-term contracts

Do you have long-term contracts with suppliers and service providers that are damaging you cash flow? Many businesses use multiple tools to help run their business smoothly. Even small expenses can add up as you begin paying for dozens of subscriptions.

There may be an opportunity to re-negotiate contracts with companies with whom you have an establishes rapport. If planning to use these companies in the long run, approaching them for a more cost-effective arrangement is one way of boosting your cash flow.

Many of these businesses will be willing to work with you if they’re guaranteed to have you as a customer for several years. However not all providers will be willing to make changes, however you can still improve your cash flow by cancelling services you aren’t using.

Added: 11 Jan 2018 10:59


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