The document provides seven tips to address cash flow issues in businesses, including running flash sales, raising prices to improve profitability, leveraging lines of credit, and adopting retainer-based fee structures. It emphasizes the importance of timely invoicing, negotiating with creditors for better payment terms, and potentially hiring more competent accounting staff to manage finances. These strategies aim to create more predictable cash flow and improve overall financial health.

1. 7 TIPS FOR FIXING
YOUR CASH FLOW
PROBLEMS

2. 1. RUN A FLASH SALE
If all of your company’s vitals seem to be fine,
then you probably just need a quick infusion of
cash in order to help your business sustain what
appears to be a temporary rough patch. The
simplest and most efficient way to do this -- at
least for companies that sell physical products
and have healthy margins -- is to run a flash
sale.

4. 2. RAISE PRICES
Perhaps you aren’t having any trouble with sales,
but you’re struggling to make ends meet on the
cash flow front -- what gives? In this case, a flash
sale doesn’t do you any good. You’re already
moving inventory at a healthy pace. The problem is
a lack of profitability.
In this scenario, your best bet is to raise prices.
While you might lose some of your most price
sensitive customers, you’ll find that the majority will
stick around and more than make up for the lost
sales.

6. 3. TAP YOUR LINE OF CREDIT
Many businesses frequently face sporadic
cash flow issues. If you would count your
business in this category, then you need a
solution that allows you to quickly respond
without compromising the overall operations
of your business. One safety net that many
small businesses turn to is a business line of
credit.

8. 4. WORK ON RETAINER ONLY
Retainer-based fee structures allow you to
develop more accurate and predictable cash flow
projections for a given period. Instead of having
to make wild guesses, you at least have a base
figure that you can work off. It’s a small piece of
sanity in what is a frequently chaotic business
world.

9. 5. PRACTICE BETTER INVOICING
Invoices need to be timely, predictable, and clear.
They should be sent out as soon as work is
completed -- never more than a few days after a
project has been finalized.
The invoice should outline exactly when payment is
due, what the terms are and how payment should be
made. Finally, there needs to be a clear breakdown
of costs so that there are no questions about how the
total amount was calculated.

11. 6. NEGOTIATE WITH CREDITORS
Outstanding payments choking you out and hurting
your cash flow? Consider negotiating with your
creditors and seeing if you can settle for lower
payments (or at least earn some more time).
As you know from being on the other side of the
table, creditors are often willing to make deals.
Especially when a payment has been outstanding
for a period of time.

13. 7. HIRE BETTER PEOPLE
At the end of the day, chronic cash flow problems
might be a sign that you don’t have the right team
handling your accounting. While it’s not the most
comfortable thing to do, you may need to fire the
individuals responsible and hire better people.
A good hire in the accounting department can help
you get a grip on the issue and start fresh.