As the owner of a small business you constantly strive to maximize business income. You may do this by offering bonuses as incentives for your sales people and developing marketing campaigns to attract more customers. Remember that an important part of ensuring the profitability of your enterprise is minimizing business costs and getting the most from every dollar you spend, whether it’s for Philadelphia insurance, business equipment or bank fees. Can you improve the cash flow in any of the following ways?

•    Look at your terms of trade with major suppliers. Are there opportunities for savings by negotiating better prices or more favorable payment terms?
•    Chase up debts that are owed to your business. You don’t have to be aggressive about this, but it’s important to pursue late payers who may have become complacent about paying your bills.
•    Don’t rush to pay bills. Paying bills on time - but not before they are due - will maintain your good credit rating as well as improving cash flow.
•    Don’t let cash sit in your bank account without earning interest. Transfer any surplus funds to an account paying higher interest.
•    Do you qualify for discounts on insurance premiums? Installing fire or burglar alarms at your business premises may have created an opportunity for security device discounts.

It’s important to maximize the cash coming into your business coffers, but never forget that cash flows in both directions. Consider every dollar that your business is spending, and try to minimize business costs. Negotiate with suppliers and debtors to improve your business cash flow, and talk to your agent or insurer if you want to get better value from your Philadelphia insurance policies.
 

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