As a small business owner, you know how important maintaining a steady cash flow is. With the high cost of doing business in today's economy, many small businesses need help keeping a healthy cash flow.

Why is cash flow so important?

The most frequent reason that small businesses fail is cash flow management, with 82% of failed small businesses citing cash flow problems as a primary factor.

Managing your cash flow is essential, not only for profitability but for long-term survival. If your small business doesn't have the cash to cover expenses, it could ultimately close. Then, not only will you be out of business, but you may need to liquidate inventory, equipment, and other assets at a fraction of their original value. 

How to best manage your cash flow.

Managing your cash flow is all about making the right decisions regarding spending and generating revenue. With advice from the Better Business Bureau, here are five cash flow management best practices.

1.  Send invoices promptly and collect your outstanding debts.

Maintaining a steady cash flow requires ensuring that your payments are processed quickly and that all outstanding invoices are promptly collected. Small businesses that work on an invoicing system rather than a direct payment model must be especially attentive about sending invoices immediately after services are complete. Paying your bills and being paid for your services on time is critical for keeping your cash flow steady.

2.  Review your cash forecasts weekly.

A cash forecast is a financial projection that indicates how much cash will come in and go out throughout a specific timeframe, such as over the next week, month, or year. By closely examining your cash flow every week, you can better understand where your money is going, allowing you to make more informed decisions about how to invest your resources.

3.  Reduce your variable costs.

Many small businesses make the mistake of investing in non-essential expenses when they're cash-flow positive. However, the best way to ensure your cash flow remains steady is to reduce your costs where possible. Simply put, focus on reducing the costs that can be cut back or eliminated without significantly impacting your business's core operations. Cutting costs will optimize your cash flow and help your business operate more efficiently.

4.  Develop multiple revenue streams.

Another great way to keep your cash flow steady is to develop multiple sales channels. This not only increases the amount of revenue that you generate but also ensures that you have a reliable backup plan if one of your primary sales channels begins to slow down.

5.  Consider a cash advance.

A merchant cash advance or MCA is not a loan but an advance on future credit card sales.

An MCA gives merchants a fast and easy way to stabilize cash flow without all the red tape of a traditional bank loan. An MCA from a reputable company like Quikstone Capital Solutions can have funds available to you in days, not weeks, with repayment in 6 to 8 months, not years. Traditional bank loans also require a fixed payment amount whether or not you have the funds. With a cash advance, repayment is flexible. When sales are strong, you pay a bit more; if sales are slow, you pay less.

Quikstone Capital is honest and transparent, and we're proud to have an A+ rating from the Better Business Bureau. We're also proud that 80% of our merchants are repeat customers. Here is what one merchant has to say about Quikstone.

Quikstone is the only reason I made it through COVID. Our business representative, Jason, was professional, available, insightful, and always followed through on anything he said. Props to Jason, he's the best"!

Contact us today to speak with Jason and learn more about how a cash advance from Quikstone can help your business grow.