4 Suggestions for Managing Small Business Cash Flow in Lean Times

Small businesses are the backbone of the American economy. Today more than any other time in history, the barrier to owning your business is much lower. Once started, owners have many responsibilities, including finding customers, creating bids, completing the job, invoicing, and collecting payments. Don’t forget that employers need employees to hire, train, and manage. All these duties happen at the same time and often leave an owner caught up in a whirlwind of activity.

Throughout all the tasks, cash flow must be managed. Some businesses are better at handling their finances than others. Those who succeed often have a balance sheet in black – instead of red. They also understand the importance of protecting their hard work through business insurance for their Mississippi company.

Better Manage Your Small Business Cash Flow

It’s possible for every business owner to manage cash flow. During leaner times, it takes discipline. These four tips can help you stay on track:

1. Make friends with technology. Using technology to run a business is nothing new. If you’re out on a job site, you typically have access to your smartphone. Think of social media, email, and bookkeeping software. Make the most of your accounting software by using the app on your smartphone to stay abreast of your finances. Some can even write up a bid in the app.
2. Reconsider a large equipment purchase. Do you really need to take on a skid steer payment when things have become slow? Instead of buying or leasing new equipment, rent it. Equipment rental companies have quality tools ready for your job site. You only pay for the time you need the equipment and not for those weeks when it may sit in storage. This option keeps your cash free for other vital expenditures.
3. Communicate with your vendors. It’s critical that you pay your bills on time. When you can’t, talk with your vendors about extending repayment times. They will usually work with you if you’ve always been an excellent customer and are in a bit of a temporary slump. They benefit from you remaining in business and may help you do so.
4. Encourage early payments with discounts. It’s difficult to pay your vendors when you are waiting for customers to pay you. Encourage quicker invoice payments by offering a slight discount for paying within ten days of the invoice. Many of your customers will appreciate saving some money too.

Protect Your Mississippi Company with Business Insurance

No matter your current situation, it pays to discuss your business insurance coverage with your preferred agent. You don’t want to be stuck with paying for damaged equipment because you lack sufficient protection. The agents at Hawsey Insurance will sit down with you to review your current policies, look for potential gaps in protection, and offer you solutions at reasonable rates. You get peace of mind as you manage your company. Contact us today for more details.

Call Hawsey Insurance at (601) 856-7707 for a free Mississippi business insurance quote. Feel free to contact us online or make an appointment to stop by one of our offices in Madison, Jackson, and Southaven, MS.