Cashflow is vital to any business. So as we some out of lockdown, it is important to consider your cashflow, the effects the pandemic has had on it, and strategies to get it back on track. Its time to look at managing your invoicing, keeping up to date with your tax obligations, increasing flexibility and creating greater efficiencies.
Whilst it can be challenging for business owners to find the time amongst reopening to sit down and strategise, it is vital to do so. To get you started we have 4 tips to keep your cashflow smooth as restrictions ease.
1. Tap into stimulus packages
Government stimulus packages are a great way to help keep your cash flowing. There are many stimulus packages your business may have access to if your revenue has been hit by COVID-19 and you satisfy other criteria, like yearly turnover and number of staff.
Taking advantage of these could help your business in diversifying and recovering after the pandemic. JobKeeper and the Cashflow Boost are both hugely valuable to those businesses struggl;ing due to impacts of COVID-19.
2. Apply for grants
As well as stimulus packages there are many great grants you can take advantage of. Many of these are designed to help you complete a major project which will help your business adapt or grow as the lockdown eases.
For example, the Queensland Government is offering $10k grants to help businesses adapt to changing markets. If you want to adapt your business whether it be through R&D, marketing or more, consider this grant. You should check whether your project is eligible before applying.
3. Prepare to negotiate
Negotiating payment terms with your suppliers can give you a major cashflow boost. If your supplier is offering any discounts, deferrals, or other special offers you can take advantage of these to give you some cash now. This could free up your cashflow to help you adapt to the new market, keeping your business relevant.
Have a conversation with your suppliers and see what they can do for your business.
It’s also worthwhile having a chat to your landlord about providing relief to your business if they haven’t already.
4. Cut the fat
As well as looking for discounts where you can, trimming excess costs in the short term is also a great way to free up your cashflow. Look at your software licencing, subscriptions, the number of desks your hire when co-working, and any other variable costs you might have. Looking for new ways you can trim the fat can be challenging, but questioning every expense and its usefulness is a good place to start. There has never been a better time to do this.
Make it happen
Before looking at new ways to improve your cashflow consider talking to your accountant. Our advice in this article is general and may not apply to your individual situation. So, if you want specific advice for what you can do to improve your cashflow come have a chat with an Advisor.