Written By Adam Brooks
Even the best ideas or unique ways to serve customers can hit a wall if your small business cash flow isn’t managed carefully.
For startups and growing businesses, keeping a close eye on money coming in and going out and accurately forecasting sales and expenses is key to staying financially healthy and avoiding surprises.
At ABLE Financial Group, one of the ways we help business owners succeed is by guiding them to manage their small business cash flow more effectively. Let’s explore some practical, easy-to-implement steps to keep your cash moving and your business thriving.
1. Raise Your Prices
This first one’s a no-brainer. Among other small business financial problems, I’ve noticed that business owners often find it frightening to raise their prices because they’re afraid it could result in lower sales. However, it’s okay to test several price points to find the perfect number. There’s no way to tell how high your customers are willing to go until you try.
2. Pay Digitally
All business owners have bills to pay. If you pay them digitally, you can wait until the morning of the day your bill is due to make a payment, increasing your cash flow.
Another digital option is using a business credit card. Some credit card companies offer a 21-day grace period, so you could pay your bills when they’re due and then take advantage of the grace period to improve your cash flow.
3. Perform Credit Checks on Customers
Run a credit check on any customer who doesn’t want to pay you in cash. If a customer has bad credit, you can assume you won’t be receiving payments on time. Even if you really want to close the deal, your company’s cash flow could suffer from the late payments.
4. Lease Equipment and Supplies
Most business owners know that buying is cheaper than leasing. So this tip might seem counterintuitive. But to improve small business cash flow, leasing is better than buying because the smaller payments help free up cash. And unless your company is flush with cash, you’ll want to sustain a steady cash stream for daily operations.
5. Put Your Money in High-Yield Savings Accounts
The best high-yield savings accounts offer interest rates that are significantly higher than the national average, meaning you’ll earn more on the money you’ve stashed away. This can provide your company with cash liquidity.
6. Refine Your Inventory
Make a list of the stock you buy that isn’t moving at the same pace as your other products. Those sluggish products tie up a lot of cash and could reduce your cash flow. So instead of buying more of what doesn’t sell, get rid of what you do have. Increased demand for that product isn’t likely—and increasing your cash flow is a smarter move.
7. Give Early Payment Discounts
Everyone enjoys a good incentive, so by giving your clients a discount for paying their bills on time, you’re offering an opportunity for both of you to win. And, of course, receiving the payment early improves your cash flow.
8. Submit Invoices Right Away
In addition to sending out invoices immediately, your invoices should have clear terms and be simple to read. The due date should be mentioned several times (ideally in bold). Also, give precise instructions about the allowed payment methods and late-payment fees. Remember, the bottom line is to increase your cash flow, and sending out timely, no-nonsense invoices is a pivotal step.
9. Set Up Discounts With Your Suppliers
You’ll be in a better position to negotiate payment terms with suppliers if you maintain an ongoing, friendly relationship. If your suppliers are willing, pay your bills early in exchange for a discount. Setting up favorable arrangements with your suppliers is a key part of small business cash flow improvement.
10. Consider Creating a Buying Cooperative
You could take your negotiation skills to the next level by partnering with other like-minded companies willing to pool their cash as leverage for bartering lower prices with suppliers. Some suppliers give large discounts to firms who buy in bulk.
Partner With a Professional to Grow Your Small Business Cash Flow
Whether you’re looking to improve your small business cash flow or explore other financial planning strategies, we’re here to guide you every step of the way. Think of us as a partner you can rely on—someone who listens, understands your goals, and helps you make confident financial decisions.
At ABLE Financial Group, your goals always come first. We operate with honesty, transparency, and respect, providing frameworks that truly support your business and financial success.
To learn more about our team and the ways we can help guide your estate planning, call 480.258.6104 or email adam@ablefinancialgroup.com today.
About Adam
Adam Brooks is Managing Director at ABLE Financial Group, a financial services practice that focuses on transition planning and simplifying the complexities of their clients’ wealth. As a CERTIFIED FINANCIAL PLANNER® practitioner, Adam has been guiding individuals, businesses, and non-profit organizations toward their financial goals since 1993. Co-founding ABLE Financial Group in 2006, Adam oversees the practice, working with business owner clients, primarily focusing on succession planning and mergers and acquisitions (M&As).
Adam obtained degrees in finance and accounting from the University of Arizona and holds the CFP® certification. Adam was recognized as one of Barron’s Top 1,200 Financial Advisors in 2021 and 2022, and was named a 2022 Forbes Best-in-State Wealth Advisor. Outside of his work as a financial advisor, Adam has taught a variety of courses at surrounding community colleges, including Successful Money Management Seminars and Rich Dad’s Cash Flow courses. Adam also previously hosted a radio show called The Truth About Money.
When not serving his clients, Adam actively serves his community in a variety of leadership positions. In 2011, Adam and co-founder Lee began funding the ABLE Financial Group Philanthropic Fund at the Jewish Community Foundation, allowing them to support some of their favorite organizations and causes today and into the future. Adam lives in Scottsdale with his wife, Cindy, their three sons, Jordan, Dylan, and Cameron, and their two dogs, Nelson and Sunny. Adam is active in his children’s lives, an avid cyclist, and enjoys local hikes with his family. To learn more about Adam, connect with him on LinkedIn.
