Cash Flow Problems are Killing SMB Growth: Here are 5 Ways to Safeguard your Business

I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently?

The numbers are in and the news isn’t great for Australian small business owners. The latest research by East & Partners shows more than half of SMBs cite cash flow as a major barrier to growth (56%). Less than one in ten are content with their cash flow and around three-quarters of growing businesses say revenue would have increased by up to 50% if they had better cash flow.

Set clear payment terms

If you don’t know when something is overdue, how can you manage cash flow? Be clear with your payment terms and invoice in advance or as work is completed. Small businesses should push to get payment within 30 days of invoicing but negotiate the longest possible terms for accounts payable. There are even new solutions that will automatically ‘chase’ late invoices for you. If possible, also consider direct debit payments for your customers to minimise the gap between invoicing and payment.

I’d be really interested to know your opinion. Check out the full article here and then I’d be happy to discuss with you by phone (0467) 749-378 or email [email protected].

Thanks,

Robert