Some business owners are put off dedicating money to their marketing campaigns because they are concerned about cash flow. It certainly takes time and money to obtain returns and results, but there are ways to handle cash flow so that vital marketing receives the investment it requires. As marketing your business will ultimately improve cash flow in the long run, it is worth thinking about how to deal with it effectively right from the off.
Here is a simple guide to maximising and protecting your cash to ensure that you get the maximum investment:
1. Don’t bury your head in the sand
Perhaps profit levels aren’t where you might have hoped and cash is tight. Whatever the situation is, work out exactly how much cash you have at your fingertips. It is important that you are able to pinpoint exactly how much cash is on hand at any given time.
2. Prepare for unexpected circumstances
Think about what would happen if a client delays settling an invoice or a sale falls through. Make sure you have some contingency funds available in case there is an unexpected shortfall.
3. Chase up debts swiftly
Make sure your staff know how important it is that bills are settled as quickly as possible so that any cash you are owed is in your possession at the earliest opportunity. Encourage them to chase up unpaid invoices, particularly where repeat offenders are concerned.
4. Settle your own bills on time
It will do your credit rating no good if you are late settling your own bills and invoices. Paying promptly will also help you to reassess your cash flow position and give you peace of mind that the money you have in the bank is yours to spend.
5. Spend wisely
Before you make any large investments, consider all the options. If possible, work out how the spend will lead to returns for your business in a measurable way. Compare prices to see if you could save by shopping around.
Keeping a close eye on your cash flow will allow you to grow your business without putting it at risk. Knowing exactly how much money is available will help you to budget for your marketing campaigns more efficiently. And the more successful your marketing is, the better your cash flow position will be. It’s a win-win situation!
If you want help with your marketing startegy, get in touch.