Quick Fixes for Cash Flow

Three really quick ways I would tell people they can look at cash flow increases are:

(1)    Raise prices selectively on products. Nothing drops to the bottom line like a price increase

(2)    Manage working capital better. It is a mystery where all your money goes on a monthly basis. Usually because it is tied up in working capital like Accounts Receivable and/or Inventory. These areas usually have multiple strategies for ways to reduce tied up money and increase cash flow. The best eye opening test of what needs to be done is to ask your accountant to help you calculate your DSO (days sales outstanding) and DIO (days inventory outstanding). It will forever change the way you look at your business

(3)    Cost cutting is great, but going it alone can be hard. Small businesses should look at various buying groups or cooperatives to join.

There are so many other ways to work on cash flow. Take a look at Newpoint's Cash Flow Launcher tool: https://newpointadvisors.us/services/cash-flow-launcher-cfltm/ and then let’s talk about what you need to impact your bottom line in 2017.