This may sound simple, but to make sure that your business entity has a lot amount of cash coming in, lessen the expenditures then it would result in growing your business efficiently.
As CEO, Clarke-Stone knew early on that she wanted to branch out income streams while staying faithful to the brand’s interest and passion for storytelling—enhanced innovations and bringing the newly developed concepts to reality.
Also, Clarke-Stone has established systems that guide the flow of money and ensure that Narrative has the resources it needs to grow rapidly.
Here are the three best tips on managing cash flow at any business.
- Branch out income streams
As much as possible, try not to depend solely on one source of revenue to direct or push your business forward, reaching its speakest edge. “If one well dries up you want to make sure you have something else to take its place,” Clarke-Stone recommends.
- Discuss cash flow from time to time
Keeping a good track of your cash inflows and outflows would lead you to a right way. Always bear in mind as to where your money is coming from, how much is coming in and how much is going out. “We have a forecast report that we’ve put together that tracks accounts payable, accounts receivable, and then what we have pending regarding our projections,” she says.
- Negotiate payment timing
This always been the outgoing issue of the majority. There’s nothing worse than accomplishing campaign or set of the project for a client and then having to stand by and wait for payment. To help diminish that risk, Clarke-Stone says she negotiates payment upfront so that Narrative gets paid at least a part of the invoice before work starts.