Improving cash flow in your business

Keeping on top of the financial management of your business can be hard work. It's possible to have a profitable business that is struggling to find the cash flow to pay expenses and fund growth. Likewise, you could have positive cash flow but are not turning a profit, particularly if you are scaling.

Turning a profit is at the heart of running any successful company, but without an even and predictable flow of cash into the company, you can't cover your overheads, payroll, or day-to-day operations. That’s before thinking about expansion and growth of the business. You need both, so it’s important to get your head around the important process of cash flow management.

Let’s look at some of the key things to understand about your finances.

1. Profit is a by-product of a successful business

As the owner, you want to make profits, but profitability isn’t the only goal. A business can easily be profitable, but also be highly unstable in the longer term. What you want is stability and consistent revenue.

2. Cash flow keeps your business alive but know your costs

Good revenue (income) brings cash into the business. Without cash to cover your operating expenses, you have no means to keep the lights on in the business. The flipside is your costs. In an ideal world, you want more cash inflows than cash outflows, so it’s important to know your expenses and costs and to manage them carefully.

3. Be proactive about spend management and easing expenditure

If you can keep your costs down, that will improve your cash flow position. See if you can negotiate with your suppliers, extend payment terms, and reduce the amount of stock you keep on hand.

4. Drive more revenue, through increased sales and marketing activity

If you can increase your revenue, you boost your cash flow. It’s important to be proactive about running targeted sales and marketing campaigns to increase your sales. Think about who your ideal customer is and what they buy from you – how can you make this more attractive so they consistently buy from you.

5. Keep the cash flowing and the profits take care of themselves

If you achieve the ideal cash flow position, the company sits on solid financial foundations, the cash is there for investment, and the business can grow. It’s that simple.

Talk to us about improving your cashflow management

If you feel your cash flow could do with a helping hand, give us a call. We’ll review your finances and cash flow, and come up with key ways for you to increase your cash income and reduce your cash expenses. It only takes a few small changes to achieve a far better cash flow position for your business – helping you maintain positive cash flow and generate profit.

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Tips for Moving Day

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by Birgit Hoeglinger • 11 April 2025

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