Four Ways to Boost Cash Flow
How to boost cash flow.
Cash flow is the heartbeat of a thriving business. Revenue streams make a business sustainable and open up new possibilities. A healthy cash position provides resilience to the company for weathering uncertain and turbulent moments, which are typical in today’s volatile, uncertain, complex and ambiguous world. Business executives and entrepreneurs often face the challenge of wearing multiple hats, including business development, marketing, technology development, and financial strategies, among other decisions. Each of these areas is incredibly tough, and the challenge for executives is to engage in optimization techniques for making the correct decisions for the firm’s context. For a technology company, marketing may seem less critical, or, technology may not be a priority for a services firm, for instance, and so on. Even for seasoned executives, it’s very easy to lose sight of cash flow while navigating a business through its growth years, or while executing deliverables with investor backing. Based on our experience in dealing with the small and medium-sized companies, across industry sectors, we’ve first-hand knowledge of how illiquidity can derail even the smartest companies. So, we highly recommend making cash flow a top priority for your business. We also realize it’s easier said than done, so here are some proven strategies to boost cash flow.
First way to boost cash flow is Consulting. As a business, your employees enjoy subject matter expertise that could benefit others in the industry. Consider consulting as an additional revenue stream, which your business can deliver without consuming more resources. Besides helping peers, you could gain recognition as an industry leader, ready for taking on more challenging opportunities.
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Licensing is another way to boost cash flow. Building a business by developing intellectual property, proprietary process, or innovative technology is typical across industry sectors. Consider licensing the solution, which could bring in more revenues. The technology and services sectors are huge markets, and innovative solutions could benefit other businesses without having to reinvent the wheel. A collaboration platform as an extension of the workplace, where corporate employees collaborate on projects, or, software-as-a-service for e-commerce are popular solutions benefitting all the stakeholders in the digital ecosystem. It’s not just technology and services businesses, but other organisations could also enhance the value chain.
Collaborating on projects is typical when projects are complex and extensive. Consider leveraging on the expertise of other professionals or businesses for taking on more projects, which could mean more revenues for your business. Across the industry spectrum, partnerships are typical, and opportunities for collaboration abound. Though technology is experiencing rapid development, there is a growing gap between technology leaders and adopters, for instance. Technology leaders often partner with other industry stakeholders to not only implement the solution but also help bridge the know-how between the leaders and followers.
Training programs could help your industry to use not only the solution but also enhance the value chain. If you have developed or pioneered a system, which could benefit the industry, consider certifying professionals to help other industry players learn the ropes. Your employees could deliver training programs, or you could partner with training firms.