According to the government of New Jersey, there are presently over 861,000 businesses across the state. If you run a business in NJ, you’re competing with hundreds and thousands of other brands in your local industry. If you don’t use the right game plan, you may develop negative cash flow and struggle to generate profit.
In this blog, we’ll look closely at three cash flow management strategies to help your NJ business stay on track. Keep reading!
1. Analyze Your Profitability
Cash flow management will amount to nothing if you don’t generate enough cash, to begin with. Before you start managing your cash intake and expenditure, determine whether your business is pulling a reasonable profit.
Analyze your products/services. Are they generating enough profit? If not, consider changing their pricing, replacing staff, switching to better resources, and so on. Understand how you can make more profitable sales and start implementing those strategies.
2. Closely Monitor Your Money
If you have negative cash flow, your expenses have gotten out of control. Closely monitor where your money is going. Use an Excel sheet to track your expenditure and make the right changes accordingly.
Prepare key financial statements to analyze your performance and financial health. If you invest in equipment, machinery, and raw materials, you should also maintain precise inventory records.
How much stock was purchased? How much stock was used to make the final products? Did some of it go to waste? If so, how much? As you answer these questions, you’ll be able to stay on top of everything and manage your cash flow with adroitness.
We also recommend analyzing marketing expenses, overheads, HR, and other critical expenses. Close monitoring and analysis will help you minimize unnecessary costs, increase efficiency, and improve your financial standing.
3. Consider Business Financing
Ameliorating the situation is often impossible without adequate funding. If you don’t have capital, you’ll struggle to improve your cash flow.
Consider taking out a small business loan or applying for a merchant cash advance. Before you begin, carefully analyze your financial standing with a business advisor. Consult a business loan agent and determine the right loan for your needs.
If you’re looking for urgent funding, a merchant cash advance is your best call. If you have a more relaxed timeline, look into standard business loans. Both of these options will help you acquire sufficient cash without any origination fees, processing fees, or prepayment penalties.
Recommended Read: Does Cash Flow Affect Business Loan Approval? If So, How?
If you want to support gaps in your cash flow, work with qualified, experienced, and dedicated business loan agents in New Jersey. At Whitestone Fund, we provide business loans and merchant cash advances with high loan amounts and flexible terms. Contact our private money lenders to get started!