Business By The Books with Danielle Hayden 8 Actionable Steps to Increase Cash Flow in Your Business – Ep. 201
Cash flow is the lifeblood of every business. In this episode, guest host and Kickstart's Business Development Manager, Aubrey Philipp, walks through 8 actionable steps you can take to help improve cash flow and keep a consistent inflow, whether you're looking to boost short-term profits or build a strong foundation for long-term success.
From determining your financial focus to strategically using debt, this episode has tips every entrepreneur and business owner can apply today to take control of their cash flow!
Key Takeaways:
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Understand Your Financial Focus: Decide whether to prioritize short-term profits or long-term value. This clarity will guide your decisions and strategies.
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Assign Ownership: Every line on your income statement should have a designated team member who takes responsibility for that line to ensure accountability and alignment with your business's goals.
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Assess Client Profitability: Identify clients or services that are consistently unprofitable and consider letting them go to free up resources for more lucrative opportunities.
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Collect Payments Upfront: Improve cash flow and reduce unpaid invoices by requiring deposits, retainers, or full payments before work begins.
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Bill Early and Often: Frequent billing keeps cash coming in and reduces delays in payments. Break invoices into smaller, more manageable installments if possible.
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Dedicate Time to Implementation: Block time regularly to act on strategies that enhance your cash flow. Consistency is key to success.
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Use Debt Strategically: When planned properly, debt (like a line of credit) can be a powerful tool to stabilize cash flow and fund growth.
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Monitor and Adjust Regularly: Cash flow management is an ongoing process. Review your finances regularly and tweak strategies as needed to stay ahead.
Topics Discussed:
The Importance of Cash Flow (00:24 - 00:50)
Step 1: Determine Your Financial Focus (00:51 - 01:25)
Step 2: Assign Responsibility for Each Line in Your Income Statement (01:25 - 02:03)
Step 3: Assess Profitability by Client and Service (02:03 - 02:29)
Step 4: Collect Payments Upfront (00:03:03 - 00:03:35)
Step 5: Bill Early and Bill Often (03:35 - 04:01)
Step 6: Dedicate Time to Implement Strategies (04:01 - 04:28)
Step 7: Use Debt Strategically (00:04:28 - 00:04:48)
Step 8: Monitor and Adjust Regularly (04:48 - 05:14)
Resources:
Episode 200 | Cash Flow: Are You the Problem? Why Consistency is Key to Sustainable Revenue
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