Many entrepreneurs are only concerned with and pursuing big profits, but pay less attention to cash flow. Check out the following 8 tips to maintain cash flow to keep your business healthy.
Then actually, what’s that cash flow? Cash flow is a business financial report for a certain period of money coming in and money going out.
Indeed, to build a brand in business is one of the important things. With a well-established brand, it is usually followed by high sales so that the incoming profit increases.
However, if themanagement cash flow in the business is not managed properly and correctly, the business will soon be out of business.
There are also many business cases that went bankrupt even though the profit generated was large, but they ran out of cash flow so that operations were stopped, management could not pay salaries, bills piled up, so that the company’s performance declined.
To keep your business cash flow healthy, it’s a good idea to know the following 8 tips for maintaining cash flow or business cash flow.
1. Give Priority Level to Expenditure
Basically every expense has a priority level that must be calculated correctly.
There are expenses that have a big impact on the progress of the business. Moreover, there are also expenses that have little effect on the business.
For that, before making a decision to issue cash, try to observe first, is it an important thing and can grow the business, or can the expenditure be postponed?
2. Know Production Costs & Total Expenditures to Maintain Business Cash Flow
By knowing in detail the total expenses during the production period can prevent you from wrongly determining the selling price.
By calculating the right selling price plus business profits, your business cash flow will remain healthy.
Another way that can attract many buyers is to give discounts on the products you sell, but keep in mind that the discount price should not be below the cost price.
3. Applying Strategies Product Bundling
Product Bundling or merging the product is one of the interesting sales strategy for the consumer. By only buying one product, consumers will get a combination of several products.
The benefit for business owners is that more products can be sold, so that it has an impact on cash flow increased business.
For example, in restaurants, package menus are usually available food and drinks at lower prices than the regular menu.
Read now: 4 Main Reasons Why Small Businesses Fail and Bankrupt
