Keeping the cash flow steady at your business can be a long and frustrating process, even when sales are good. This is because there are several factors that go into your finances, and some get overlooked in the course of daily operations, such as the state of your inventory management. By making some small changes to the way your business handles certain tasks, you could make meaningful progress when it comes to your cash flow. Here are a few tips from UNOVA Coworking to help you get started.
Incorporate
If you haven’t already incorporated your business, consider doing so for the many advantages your business will see. There are several different corporation types and they all have various advantages. For instance, forming an S corporation allows you to take taxes out of your paycheck rather than paying them in one lump sum at the end of the year, and it also allows for a deduction for your payroll, which means your tax responsibilities will be lowered. There is also a C corporation option, which allows for a much stronger form of protection for your company and its shareholders. Read up on the benefits of incorporating to figure out which option is best for your business, and get some help with filing the corporation paperwork.
Invest in Helpful Software
Whether you choose to incorporate or not, you’ll need the best and most updated software in order to make sure your payroll and accounting records are on track. These days there are several options available according to your business’s specific needs, and while it’s still a good idea to utilize the services of a professional accountant at tax time, there are programs that can help you keep track of your expenses and income throughout the year so you won’t face any nasty surprises. You can choose between software that incorporates both accounting and invoicing tools or look for specific programs that focus on one or the other.
Create a Loyalty Program
While keeping track of your cash flow is essential, it’s also crucial to look for ways to bring more money in. You might partner with a local business so both of you can benefit from the exposure, or create a loyalty program to encourage repeat customers. Businesses make much more profit from loyal customers than they do from new ones, so this is a great way to boost your income without spending a lot of money in the process.
Working with other small businesses can get your brand more exposure, so make sure that you have a simple, but high quality, logo that captures your company’s product and spirit. If you don’t yet have a logo, look for programs online. There are even some free options that allow you to customize templates or create your own from scratch. It’s logo design made easy, and your business will reap the benefits.
Make It Easier for Customers to Pay
Once you can keep your customers coming back, it’s a good idea to make paying invoices as easy as possible for them so you don’t have to waste valuable time and money tracking down payments. Consider digitizing invoices, offering a small discount for early payments, creating multiple pay options, discounting subscriptions, and/or offering email or text reminders to ensure they know when billing dates are. The easier it is for your customers to keep track of their bills and due dates, the faster you’ll get your money, allowing your business to keep cash flowing freely.
Maintaining a healthy cash flow for your company will ensure that you aren’t scrambling to find resources during slower times of the year, and it will help to reduce the stress that comes with running a business. By getting organized and utilizing a few different tools, you can keep communication open with vendors and customers to make sure your finances are in great shape.
Having a dedicated office space is nice, but it can be expensive. A more budget-friendly option is a coworking space, like UNOVA Coworking. Not only do we offer a quality workspace with many office essentials included, but you will also get the benefit of networking from your office. Visit us online to learn more about how you can save money by using our coworking space for your business!
Questions or comments? Have any additional tips or resources to share? Reply below or reach out to Julie Morris.
to 1.74 million coworkers in 2017, with an expected 5.1 million members by 2022. To put that number in perspective, more people currently cowork than there are people living in all of Costa Rica! That not only means that memberships across the globe are making a statement in and of themselves, but that coworking will most definitely impact the future of work as we know it.
gamble on the Village of Springville. My friends and family seemed excited and supportive when I shared the news that I purchased the property at 29 Mechanic Street, even if they had never personally been to Springville. They would generally congratulate me and ask some form of “what are you going to do with it?” It’s a logical question, but not one that I had a great answer for at the time, so I had to dance around it until recently.
Street 
closed on the property at 29 Mechanic Street. The village had just completed its Franklin Street Streetscape Project, and I desperately wanted to transform the building from one with boarded-up windows and an art mural tagged with graffiti into something — anything. For such a central location (from its roof you can see the post office, the library, the town hall, the police and fire stations, you name it!), this building deserves attention and use. So I bought it.