Financial Wizardry - Conjuring More Money In The Business

When it comes to improving the cash flow of the business and how much money it has to invest back in, a lot of the tactics you’ll have recommended are to do with expanding or marketing. However, those also cost money and sometimes you’re not in a position to do that. When that’s the case, it’s all about knowing how to move the numbers.

Conjuring More Money In The Business

Financing

We’re not going to suggest that financing is free money. However, every business owner should know how to handle credit responsibly. A loan is one of the most reliable ways to get some extra financing when you need a cash injection in the short-term, but if you’ve been denied for the loan, there are still other options out there. Credit cards, angel investors, and even crowdfunding can help you straighten out cash flow. Most small businesses are going to have slow periods where they need to rely on financing. Just make sure you have a debt management strategy at the ready to deal with it in advance.

Flexible payments

You might be able to get more money from your customers if you would just get out of the way, as well. Nowadays, most customers don’t rely solely on cash, and online, they use a variety of different methods to pay. Plastic is one of the most common, and it’s worth looking at sites like creditcardprocessing.xyz to see which processing services can help you serve the most customers with the most reasonable fees. There are a variety of different payment platforms you can incorporate in the business, so do your research.

Fixing the flow

The problem might not be that you’re not getting enough money, but that you’re not getting it soon enough. This is a problem faced most often by businesses that rely on invoices and have to wait for customers to pay. By simplifying the process and sending invoices immediately from your end, you’re likely to see more prompt responses. However, you might also have to stimulate their end of the deal, either by including short payment terms in your agreement or by sending polite, but professional reminders of due invoices. Invoice financing is another kind of credit to consider, as well, if you do find yourself dealing with late payments often.

Finding price increases

You can always start charging more for the products and services you offer. Customers will naturally prick their ears when they hear of a price increase. So, as thebalance.com suggests, you have to be ready to justify that increase. Customers are willing to pay more, studies find, for better support, communication, and investments that they can see the benefit of. Being competitive can help you attract customers, but if you’re constantly undercharging, your business will eventually become unsustainable.

A little financial wizardry is a simple solution to immediately start seeing more money in the business. The techniques above all come with their own costs, so you need to do a little work to see if the gain will justify the cost, of course. 

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