In this comprehensive guide, from my experience as a cash flow coach I will share 27 ways to improve cash flow in your business with you right now in 2024.
I have used these proven cash flow strategies to improve cash flow for my clients. They were in different sectors and had annual sales revenue from £40k to £53.8m.
I will share real-life examples of my clients and personal stories with you. They will give you inspiration and practical ways to improve cash flow.
Why would you trust me as a guide on this?
I’m a Chartered Certified Accountant turned cash flow specialist. I have helped hundreds of clients improve their cash flow forecasting and avoid cash flow problems for the last 20 years. I have shared my expertise on this topic through major sites. These include QuickBooks Online, Independent, Zoho, and Floatapp.
I specialize in preparing cash flow statements for my clients. My clients rely on the accurate cash flow statement to analyze cash flow and find areas for improvement. This is my main occupation, as I run my own consulting company called Hungry Cash Flow Ltd.
So, don’t worry. You are in safe hands.
Let’s dive in.
Key Takeaways
- You need to be aware of three cash flow improvement areas- operating, investing, and financing. You cannot rely on one area to ensure you have adequate cash flow to run your business. It’s a bit like not relying on a sole striker to score all the goals in a football match.
- For each area, I have shared improvement strategies categorically. I have also shared how I have implemented these strategies to improve my client’s cash flow, and you can also do the same.
I have divided the cash flow improvement ways into three categories, so that it is easier for you to understand and implement in your business.
- Cash Flow Improvement Under Operating Activities
- Cash Flow Improvement Under Investing Activities
- Cash Flow Improvement Under Financing Activities
Let’s start by looking at cash flow improvement from operating activities.
Cash Flow Improvement From Operating Activities
Cash Flow improvement from operating activities refers to the primary source of cash generation. This is because most of the daily activities that happens in a business are related to operating activities.
So we are going to spend most of our time going through cash flow strategies related to this category.
Strategy 1- Sell Your Knowledge And Experience
Sell your knowledge. Share insights you gained from your experience. Do this by offering group coaching, 1-on-1 mentoring, or an online course.
If you are a fitness coach, you no longer have to serve your clients in person.
Instead, you can package your knowledge as a self-serve course. Clients can watch and follow it on their own time, wherever they are. You can also train others on how to become fitness coaches.
Joe Wicks (also known as the body coach) began “pe with joe” on YouTube to help children stay active during the pandemic lockdown.
He was already successful, but “pe joe” took his brand even to greater heights. Wicks was awarded a Guinness world record for “most viewers for a fitness workout live stream on YouTube.” He achieved it by getting over 950,000 viewers on 24 March 2020 for his 2nd live stream.
Strategy 2- Focus On Your Most Profitable Products
Do a deep dive into your business, and look at products and services bringing cash in.
You’ll notice that not all products and services you sell are equally profitable.
For example, you could be selling 100 units at £10. So that’s £1000.
Or you could be selling 100 units at £100 each. That’s £10,000.
You want to concentrate on a £100 sale . Your most profitable product will bring in more cash flow. It will do so with less time and effort.
But that is only one part of the equation.
Also, look at the cost of fulfillment. How much cash does it take to deliver your product or service and fulfill your customer promise?
Look at cash-in and cash-out by product. Focus on the one for which the remaining cash after the fulfillment cost is highest.
That way, you’ll know what your most profitable product is. Focus on that.
Strategy 3- Go 100% Online
This is for brick-and-mortar businesses. They operate on a completely offline model or a hybrid online-offline model.
I see many business owners opt for the hybrid model.
For example, one of my clients, a marketing agency in west London, had a pre-covid physical office with ten employees.
After the pandemic hit, they decided to cancel their office lease. They moved online. They started using Slack and Trello to talk and work with ten employees and 19-20 freelancers.
They are also doing all their accounting online.
In the process, they are saving a lot on overhead expenses. For example, they don’t have to pay rent anymore.
Because they work increasingly with freelancers, they don’t have to bear the employer’s NI costs. This saving has added to their cash flow and improved cash flow considerably by 17% on average monthly since then.
You can do the same in your business.
Strategy 4- Improve Customer Trust With Milestone Payments
Nowadays, people are sceptical about spending their money. They want certainty. And they want to get things done as expected.
So rather than saying, “Okay, I’ll give you x number of hours,” you can promise a milestone. And then you can say, “When you reach milestone a, pay me x amount, and when you reach, pay me and so on.”
This way, you can offer more certainty to your customers.
This will improve your credit control process. It will also reduce the number of unpaid invoices, improving your cash flow.
So, milestone payments work great to improve cash flow at times like we are experiencing now.
Strategy 5- Move Clients From Rolling Contracts To Retainer Fees
Instead of working with clients on an ongoing basis on a rolling contract, work on a retainer.
In a rolling contract, you don’t have a surety of whether the client will stay next month. But, you are sure of monthly cash flow in a retainer.
When you move from an ongoing client from a rolling contract to a retainer, you tell them, “I’ll give you a, b, c, d e, and I’ll bill you this each month.”
This way, you are sure of a certain cash flow coming into your business every month. Then, you can invest that cash and use it to grow your business.
For example, you can bring an extra helping hand on board or run a marketing campaign. Because you know how much cash will come into the business next month. Instead of not knowing if the rolling contract will continue or end next month.
Clients are happy. They won’t see surprise invoices. They’ll know the value they’ll get from the monthly retainer. As a result of incoming cash inflow, you can invest in business growth.
Strategy 6- Get Help From A Financial Expert
It takes money to make money.
An expert can help you keep enough cash flow. They can also manage operational expenses, ensuring healthy cash flow.
Would you do that if having an extra pair of eyes can help you improve your cash flow 10x?
Who wouldn’t?
It is like investing £500 and getting £5000. So, I’d say, even if your gains from the advice are not big, like 10% or 20%, you should take it.
Because if you don’t, you’ll leave money on the table.
Understand the difference between cost and investment. Even on a smaller revenue base, like £50,000, 20% growth means £10,000. An experienced eye can spot your numbers and make changes to achieve this.
Even after taking care of the investment for financial advice, you’ll take £6-7,000 extra than if you did not have financial advice.
I have invested a lot in my personal and business growth. I never see that as a cost. Why would I want to buy a cost? I want to invest. That’s my advice to you.
Invest, don’t buy a cost.
If you are unsure about the difference between the two, bring in someone who knows this well. Consulting with a financial expert is crucial for effective financial planning and can significantly impact your business’s cash flow and growth potential.
Strategy 7- Systemize Your Business To Focus On Cash-Generating Activities
Do you feel your business is stuck because you are the bottleneck and want to serve more clients and get more cash flow?
To do it, systemize your business and focus on getting new high-paying clients.
I know you are an experienced expert who knows how to serve your clients but may not know how to run your business.
Clone yourself to run a business that generates cash for you. To do it, bring an operator who can do most of your job. In addition, it releases you from being the bottleneck in your business.
To bring an operator, you need cash flow margins, which many entrepreneurs don’t have because they don’t charge enough.
So, to systemize your business by cloning yourself as a busy entrepreneur, charge enough to make hiring the operator viable.
Strategy 8- Track Your Incoming And Outgoings
I’m sure you have heard the expression: “What gets measured gets done.”
So, track your incomings and outgoings to understand which of your services/products generate more cash flow, which types of expenses are bleeding cash, and whether they can be avoided without affecting day-to-day operations.
One of the cash flow mistakes busy entrepreneurs make is not prioritizing this task.
When you are always pressed for time, and your to-do list keeps piling up, tracking incoming and outgoing is the last thing on your mind.
I believe we never have enough time in our lives to do all the things we want to do or should do. So we have to prioritize our time to do what’s important. In this case, it is tracking incoming and outgoing.
By utilizing accounting software such as QuickBooks Online you can keep accurate accounting records and track both income and expenses more efficiently. This is essential for maintaining a healthy cash flow and understanding your cash conversion cycle.
Strategy 9- Require Down Payments On Large Orders
When you secure a large order, make sure you collect early payment as the down payment to support your existing cash flow to deliver your promise to your client.
This approach can significantly shorten your accounts receivable cycle, thus positively impact cash flow.
If you wait to complete the work and then ask for a payment, you may not have sufficient cash to support the operations. In addition to this, there is a risk your client may not be able to pay in full when it’s due.
Strategy 10- Customer Retention
It is much easier to sell to convince your existing customers who have already bought from you and liked the product than to convince a new customer who hasn’t had an experience.
So, pay attention to the customer retention rate.
So far, I have shared with you ten cash flow improvement strategies under operating activities.
Now let me show you, how one of my dental practice clients implemented these strategies to improve cash flow.
Strategy 11- Embrace Cash Flow Maximisation Tools
If you are fed up using spreadsheets to track your cash flow, I have a solution for you. There are so many top cash flow software out there, like Hungry Cash Flow, Agicap, and Pulse.
Imagine you get real-time financial information to make cash flow decisions. Furthermore, you save time in preparing cash flow statement reports, thus saving money.
Money saved is money earned.
Strategy 12- Negotiating for Better Cash Flow
Negotiation isn’t just for big deals; it’s a key strategy for improving cash flow. Effective negotiation can lead to extended payment terms, thus improving working capital and cash reserve
Think about discussing longer payment terms with your suppliers. Extending payment deadlines from 30 to 60 days can greatly ease your cash flow.
It’s not just about asking; it’s about smart negotiating.
Take James, for example. He runs James’s Cafe based in Liverpool street, London.
He negotiated with his egg supplier and got an extra 30 days to pay his bills. He was paying £2725 a month. This had a temporary extra £2.7k in his bank account every month.
What does this mean regarding what he can do with this temporary fix?
With this money, he could pay the salaries of two staff members.
Strategy 13- Smart Pricing for Improved Cash Flow
Consider this: a slight change in your pricing can significantly impact your cash flow. You might be hesitant, but it’s necessary, especially when your costs increase.
Take a small digital marketing business as an example. Maintaining the same prices can squeeze your finances if your costs are increasing. The key is raising your prices gradually, like adding more seasoning to a dish.
Look at Sally’s Custom Cake shop in Brighton. She raised her prices by 5% to reflect her use of higher-quality ingredients. Her customers appreciated the better quality and were happy to pay a little more. This small increase resulted in a noticeable boost in her revenue.
So, tweaking your prices, especially when you offer more value, can be a game-changer for your cash flow. It’s about finding the right balance and communicating the added value to your customers.
Don’t avoid adjusting your prices; it’s part of ensuring your business thrives.
Strategy 14- Balancing Your Inventory for Better Cash Flow
From my experience working with many retail and e-commerce business owners, managing inventory is one of their most significant challenges.
How much inventory should be kept so the business does not run out of stock? At the same time, not overstocking results in cash being tied up in inventory.
When you are facing this dilemma, you can use inventory management tools like Zoho Inventory.
Zoho invited me to do a masterclass on this topic. I have discussed the topic in detail, as well as practical ways to manage inventory so that you can improve cash flow.
Strategy 15- Utilize Government Grants and Tax Incentives
One often overlooked strategy for improving cash flow is taking advantage of government grants and tax incentives. It’s like discovering hidden treasures that can significantly boost your bank balance.
Taking advantage of government grants and tax incentives can significantly improve your profit margins and cash reserve, ensuring a healthy cash flow.
You just have to be aware of the grants and incentives that are possibly available to you.
For examples:
Employment allowance of £5k
As a small business owner, you can get £ 5,000 in annual allowance to knock off from your employer’s national insurance contribution if you run payroll.
VAT Schemes
If you opt for a cash VAT scheme instead of accrual, you pay for VAT based on cash receipts. This way, you avoid VAT to pay early on money not received yet. You do not even have to notify HMRC to do this.
I moved one of my marketing agency clients based in Hammersmith from accrual VAT to cash VAT. The client always had cash tied up in debtors. The client was paid, on average, for 45 days. Meanwhile, suppliers and salaries needed to be paid by the 22nd of the month. So, there was always a constant cash flow battle to have enough to cover the bills.
HMRC time to pay facility
You can contact HMRC to set up a payment plan if you face a cash shortage.
I just advised one of my clients, who owns a cafe business in Margaret, to do just that pay VAT with a payment plan.
Look, there are more things you can explore further. For this, I encourage you to check out the HMRC website.
How Healthy Smiles, based in Bond Street, London, implemented these cash flow improvement strategies.
Healthy Smiles Dental in London had a cash flow pickle, even though they were good at dentistry. It wasn’t about how they treated teeth, but about managing their money better.
The Money Troubles
Healthy Smiles was doing alright, but with only £22,725 in the bank, they were in a tight spot.
Here’s where they slipped up:
- Slow Billing – They waited too long to ask for money after treating patients. That meant cash took ages to come in.
- Easy-Going on Payments – They weren’t strict enough about getting paid, so loads of money was stuck in unpaid bills.
- Just One Way to Pay – They only accepted bank transfers, which was a hassle for patients.
- Too Cheap – Their prices were so low it was hurting their profits.
Fixing the Cash Flow
We got stuck in and made some changes:
- Pay As You Go – We started asking for part-payments along the way for big treatments, like dental implants. This alone upped their cash by 30% or £6,818.
- Membership Model – Regular patients now pay a regular fee, boosting cash flow by 20% or £4,545.
- Cash Flow Expert – We brought in a pro, and they found ways to boost cash by 10% or £2,273.
- Better Money Watching – By keeping a closer eye on their cash, they improved it by 14% or £3,182.
The Results
After all these changes, they saw a big boost in cash flow – an extra £16,818. Even after spending £2,490 to make these changes, they ended up £14,328 better off, with a healthy bank balance of £37,053.
So, that’s how Healthy Smiles Dental turned their cash flow around and got their finances smiling again.
Here’s what each point mean from the implementation point of view
- Point 1-Beginning cash balance before improvements.
- Point 2– Improved cash inflow during treatment cycles.
- Point 3– Transitioned regular patients to a stable monthly patient membership income.
- Point 4– Expertise in identifying inefficiencies.
- Point 5– Regular monitoring led to better cash management.
- Point 6- Combined effect of all improvements.
- Point 7– Final cash balance after implementing changes.
Let’s continue with more ways to improve cash flow. These are focused on investing activities.
Cash Flow Improvement From Investing Activities
Cash Flow Improvement from investing activities refer to you making investment from existing cash so that in future business will generate more cash from investments. For example, buying a property and generating a rental income.
We will look into cash flow strategies, you can apply to improve cash flow in this front.
Strategy 16- Extracting Cash From One Business To Invest In Another One
The big mistake entrepreneurs make is extracting cash from the existing business to invest in another business or property, without considering cash flow stability in the existing business.
This is important.
Extracting surplus cash without an accurate cash flow forecasting can lead to poor cash flow.
This happened with one of my clients who has a dental business.
He had two dental practices then, and the business was doing well. So he extracted the cash to invest in the third dental practice plus investment property. He soon realized that his future cash flow would not cover future outgoings as the third business took time to become profitable and ran into cash flow problems.
Entrepreneurs should be aware of the cash flow issues that can arise from overextension when extracting cash from one business to invest in another.
The lesson here is stability is more important than scalability.
Strategy 17- Utilize Existing Cash To Invest In Other Businesses When You Have The Capacity To Do So
Contrary to the previous mistake of extracting cash from the business when it cannot afford, many entrepreneurs do not utilize existing cash when they can. When entrepreneurs don’t invest cash, they miss out on growth opportunities.
This strategy ensures a healthy cash position in your primary business before making additional investments.
Strategy 18- Invest In Higher Cash Flow Generating Assets
Another cash flow investing mistake is not knowing how to select higher cash flow-generating assets. If you don’t know it yourself, get guidance from those who have done it well.
You can also follow seasoned entrepreneurs who invest in a bigger deal with other entrepreneurs.
Selecting assets that can contribute to a positive cash flow is a key strategy in cash flow management.
Strategy 19- Sell Unused Inventory
If you have damaged or obsolete inventory, get rid of them and receive cash. This way, you will be able to improve cash flow.
Conducting an inventory check helps you identify which items to clear, thus improving your cash conversion cycle.
To do this, have good inventory control procedures to know which inventory items you need to keep to sell later and which ones are put for clearance.
One of my clients, who sells luxury sofas, has monthly clearance sales at the end of the month to get rid of unwanted inventory to get cash flow and free up space in the showroom.
This monthly unused inventory sale helps his business to improve cash flow and takes care of around 10% of his overall monthly spending.
This strategy doesn’t only apply to if you sell physical products. For example, think about any office equipment you don’t use anymore. Then, you can sell them to get cash.
Keeping a close eye on stock levels helps reduce tied-up capital and improve cash flow.
Strategy 20- Use A Higher Interest Rate Savings Account
This strategy is so obvious that sometimes we forget about it. For example, one of my marketing agency clients puts away £100k per quarter in higher-interest rates savings accounts and only takes it out when he needs to pay corporate tax once a year.
Strategy 21- Repair Rather Than Buy New Capital Equipment
Ever caught yourself thinking, “I need the latest gear because everyone else has it”? That’s a fast track to blowing cash you don’t need to. If your equipment’s working fine, stick with it. Opting for repairs over new purchases can be a wise capital expenditure decision, contributing to a healthy cash flow.
It’s not about having the shiniest tools in the shed; it’s about what gets the job done.
It reminds me of my clients’ Dental practice based in Andover, England
I remember conversing with this dental client a few days ago during our quarterly catch-up and cash flow planning session. He bought a new scanner just because he wanted to use the latest gadget. I told him this is simply an unnecessary expense you can avoid to your business’s cash flow.
From strategies 11 to 16, these are cash flow improvement strategies under investing activities.
Now let me show you, how one of my dental practice clients implemented these strategies to improve cash flow.
Case Study: How Jivan Dental Improved cash flow under Investing Activities
Jivan Dental is a thriving dental practice with three successful locations around Portsmouth.
With the number of patients increasing year on year, the owner expanded by opening a fourth practice.
On the drawing board, it looked like a smart move for growth. But in reality, it was a real eye-opener in managing cash, particularly when you’re investing.
Jivan Dental biggest Cash Flow Mistake
Feeling good from their wins, the owner pulled too much money from their current businesses to start new ones. He wanted to open another location and get into property investing.
However, doing this too soon made things tough for their existing operations and shook up their cash flow.
Which cash flow improvement strategies did we implement?
We worked on the following.
- Strategy 1: Monthly Clearance Sales of Unused Inventory- Jivan Dental started selling off their surplus dental products every month, especially teeth whitening kits. This approach boosted their cash flow immediately, which accounted for £5000 per month, and in six months, improved cash flow by £30,000
- Strategy 2: High-Interest Savings- The practice began investing excess cash into high-interest savings. This had an positive impact of roughly £10,000
- Strategy 3: Choosing Repair Over Replacement – The practice decided to repair their equipment instead of buying new ones. This decision helped save money and kept more cash in the business, focusing on practical use rather than appearance.
The Financial Transformation
In six months, these new strategies started to change the financial situation of Jivan Dental as summarised in the table below, where :
- Point 1– The initial overdrawn position.
- Point 2– Selling unused dental products
- Point 3– Investing excess cash to earn savings
- Point 4– Choosing repairs over replacement
- Point 5– Cash Flow Expertise help
- Point 6– The overall cash flow improvement
Let’s continue with more ways to improve cash flow. These are focused on financing activities.
Cash Flow Improvement From Financing Activities
Cash Flow improvement from financing activities refer to the cash received from loans, equity releases. Also, cash payments to loan repayments and share buy back and dividends.
Let me share techniques you can adopt to improve cash flow in this section.
Strategy 22- Not Getting Ready For Funding When Times Are Good
The best time to raise funding is when you don’t need it.
This works well if you are raising funding from investors.
In the case of a bank, you might not want to take on debt before you need it. But you can build your cash flows in a way that when the time comes to raise funding, your finances are strong. Maintaining a cash buffer for unforeseen opportunities is crucial for businesses.
Why is this important?
Because when an investor or a bank is not convinced about the strength of the financials and doubts the ability of the business owner to pay back, they deny funding.
If you have solid financials and are financially savvy enough to communicate the value of a business, then it’s a great position to secure funding.
Otherwise, get a coach or expert to work with you to communicate your cash flow position and projections, someone who can tell investors with confidence how much funding is required to grow the business and when they can repay.
Strategy 23- Communicate Your Funding Needs With Banks And Investors And So Not Able To Secure Funding
Have you ever experienced a situation where you realized there is a cash flow shortfall and you are unsure how much the cash flow is?
Or should you go for an overdraft, a loan, or a combination of both?
If you are not sure about your funding needs, how will you be able to convince the bank or other investors of your funding requirements, how much you need to borrow, what type of borrowing – overdraft, short or long-term loan, or a hybrid between overdraft and loan – you want, what do you plan to do with the cash flow, and when do you intend to repay.
Effectively communicating with financial institutions, especially when discussing bank loans, is vital for securing funding. In addition to this, maintaining a good balance sheet with adequate accounts receivable and accounts payable management is key to securing funding.
Many entrepreneurs do not have this cash flow clarity. So, regularly review your cash flow statement to identify cash flow gaps and your repayability.
Strategy 24- Keep An Eye On Business Credit Scores to Improve Chances Of Securing Funding
Like a personal credit score, credit reference agencies keep a record of business credit scores and are aware of it. If you want to take out a mortgage or loan in business, you also need to watch out for your business credit score. For this, you can follow business credit reference agencies. Working closely with finance companies can also aid in understanding and improving your business’s credit score.
Not checking up-to-date business credit score records is a prominent mistake entrepreneurs make. Unfortunately, when it’s time to apply for funding, there may be information held with credit reference agencies that may not be true or old, which could affect your ability to borrow funds for your business.
Now that i have shared the cash flow mistakes to avoid, let’s look at the strategies you can implement under financing activities to improve your cash flow.
Strategy 25- Use A Business Credit Card
I started my business in December 2016 with limited cash flow. I approached the bank, and they offered me a business credit card with a £2,000 limit on it.
This strategy helped me effectively manage my working capital and ensure I had enough liquidity.
I would use it for all monthly business expenses and marketing investments and pay it back in full when my clients paid me in 30 days.
In a way, I used the bank’s money on marketing to get more clients and improve my cash flow.
Because i always paid back in total, it was free money generating cash flow because i was using a business credit card. As my business grew, i got more cards and higher limits. It meant more free money to grow my business and cash flow.
Strategy 26- Offer Third-Party Financing
Let’s say you sell £5,000, £10,000 packages. So it’s pretty hard for someone to pay you £5,000 straight away. You can say, “I can offer you a three or 4-month payment plan.”
Through the payment plan, you price it a little higher. So with the payment plan, it can cost 20% higher than the regular price. Otherwise, your customers have no incentive to pay the full price upfront.
To offer the payment plan, you can work with the financing companies. In that case, your customer pays a financing company month by month through a 12 months or 24 months contract. Offering flexible monthly payments through third-party financing can be an attractive option for customers, enhancing sales and cash flow.
It works great for the customers because they pay the amount over 24 months without interest to a financing company to be in your program.
For them, it’s a no-brainer. And you get the money straight away from the financing company, and you deduct between 10, 15, 20% of the value. So it’s no loss because you are charging a premium for payment plans.
Now, the question is, do you want to lose a client or get 15-20% less cash than usual? I am sharing this as a potential cash flow improvement strategy. You can do the same in your business.
Strategy 27- Consider Invoice Financing
If your invoice is not due yet and tied up in debtors and you need funds soon, consider invoice factoring.
Invoice financing can be an effective solution to avoid cash flow problems associated with late payment while ensuring adequate cash flow
Here is how invoice factoring works:
Your business will invoice your client a ltd – for, let’s say, £1,000.
The invoice is due 30 days from today.
You agree to involve invoice factoring company – B ltd.
B ltd will pay you on average 90% of the invoice value, which will be £900.
B ltd will collect £1000 from a ltd.
You get instant cash flow now to improve cash flow, and b ltd. Makes up a £100 cash flow margin from the deal. Invoice financing enhances the debt collection process, improving cash flow by providing immediate access to funds from outstanding invoices.
I am going to share with a real-life example of my other dental practice client focused on improving cash flow related financing activities.
Case Study: Dental Dynamics' Cash Flow Turnaround Through Financing
Introducing Dental Dynamics
Dental Dynamics is a go-to dental practice in Chelsea, London, raking in £650,000 annually.
Here’s the problem.
They’re sitting in the red with an overdrawn cash balance of £22,500. Business has been experiencing consisting negative cash flow for a while.
For a practice that’s all about precision and care, consistent negative cash flow was a clear signal that it was time to drill down into their cash inflows and cash outflows.
Finding the Financial Gaps
Before fixing their money issues, Dental Dynamics identified where they were struggling:
- Late Funding Search: They waited too long to look for extra money, which made things tough when they wanted to grow.
- Confusing Money Talks: Talking unclearly to banks and investors made it really hard to get more funds.
- Ignoring Credit Score: Not keeping an eye on their business credit score was a hidden problem, like missing dental appointments.
Fixing the Finances
Dental Dynamics took three main steps to improve their money situation:
- Smart Use of Credit Cards: They started using a business credit card for everyday costs and paid it back quickly. This helped build a good credit history and kept money flowing well.
- Flexible Payment Options: Knowing that some patients couldn’t pay all at once for big dental work, they teamed up with finance companies. This let patients pay in smaller amounts over time, while the practice got paid upfront.
- Using Invoice Financing: They turned what they were owed into cash right away with invoice financing. This was like getting an advance on money they already earned, which helped cover costs without waiting.
Cash Flow Improvement Check
After six months, these changes improved Dental Dynamics’ cash situation from negative cash flow of £22,500 to positive cash flow of £37,755.
Conclusion
In this guide, I have shared with you cash flow improvement strategies that are working right now.
If you prefer to watch rather than read, here is the video.
Next, I would like to turn it back to you. Which cash flow strategies have you already applied, and which one will you try next?
Let’s meet in the comment section and discuss.
