4 ways to increase cash flow in your small business

4 ways to increase cash flow in your small business

Learning how to increase your cash flow is of vital importance for your small business. Here are 4 strategies to do this and help your enterprise not only survive but grow and thrive.  

1. Watch your inventory

Whether you are starting your business or you’ve already had it for some time, finding a balance between having enough inventory to satisfy customer needs and having too much is crucial. 

2. Reduce your spending

Following the same idea, decreasing your spending is a way to increase your small business cash flow. For this, you need to carefully analyze all of your business spendings which include salaries, office supplies, bills, inventory costs, etc. 

When you have a clear idea of what you are spending money on, you can find places where it is possible to reduce costs without affecting the quality of your product.

3. Encourage and reward fast payments

If you’re trying to encourage your customers to pay faster to increase your cash flow, you can offer a variety of rewards ranging from discounts to extra products. You can make a special rewards program with gift cards or other items.

Also, try several payment plans with different discount levels to reach more clients.

4. Raise your prices.

Raising prices may be the last strategy you try. Sometimes it may scare away clients, but you need to keep up with inflation. It’s important to find a balance that works for your business and your customers.


Increasing cash flow is a way of getting your business to grow and thrive, and this advice can help you achieve it. Thre are other more aggressive strategies to help you recover a portion of unpaid bills like collection agencies or court, but sometimes the money and time are not really worth it.

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