A 2 percent discount on a 30-day invoice is equal to a 24 percent annual return if the money was invested. If suppliers don't offer this incentive, ask for it. Balance your client base. Look for ways to convert project clients to a retainer relationship. This helps make cash flow more predictable.
Many small businesses hesitate to increase rates because they're afraid they'll lose customers.
Customers actually expect small, regular hikes. Don't buy all in one place. Many small firms can save money by splitting business between suppliers that add value and those that provide a simple commodity. Tighten your inventory. Overstocking inventory can tie up cash.