The spark that ignited your decision to become a business owner was fueled by your passion for the industry and for providing valuable services to clients. However, your new role as business owner could turn into constant concern about the management worries that come with the territory.
Over 20 years ago, ConnectWise faced these same business challenges as a new technology services company. Along with thousands of our prosperous partners, we have gained the wisdom of business best practices that have allowed us to grow exponentially.
One of the most valuable lessons has been the power of insight into operating cycles, and the necessity of cultivating positive cash flows. By streamlining and honing your cash flow, you’ll have the resources you need to drive your business success.
eBook - 3 Keys to Improving Cash Flow Start Here
3 Keys to Improving Cash FlowStart Here
Strategies to Optimize Cash Flow
1. Cut Costs
Understanding the patterns of your operating cycle allows you to analyze where cash is flowing out in the form of expenses. Payroll is the largest cost for most businesses. By automating repetitive tasks, you can reduce expenses and allow better use of employee time, so instead of worrying about manual tasks, your techs can focus on revenue generating activities.
As a business management platform, ConnectWise enhances your operation cycle through automation of timekeeping, billing, dispatch, service ticketing, and more. Through centralized automation, you can streamline your business by optimizing employee time and gaining visibility into all areas of business. Focus on the bottom line and reduce expenses using the same resources with greater efficiency. Do so that much more efficiently with the right integrations into other powerful solutions like LabTech.
With LabTech remote monitoring and management, your techs can monitor client networks without leaving their desks. Save the time and money it would take to drive to the client site, and prevent an inconvenience to your clients, with the ability to resolve issues and do preventative care remotely. Thanks to seamless integration into ConnectWise, tracking billable time with LabTech is a cinch.
2. Crack Down on Receivables
The biggest reason clients are delinquent with their payments is confusion about the bill they have received. To prevent roadblocks in your cash flow, track time carefully and document work as soon as it’s completed for accurate and clear invoices.
Provide payment incentives to your clients with access to convenient options such as credit, direct deposit, and wire transfers. Don’t forget to factor associated fees into the pricing to prevent profitability loss.
3. Discover Alternative Financing Opportunities
Research outside financing if the above strategies have not increased your cash flow adequately. Business credit cards can be a great option to establish credit and purchase resources in the short-term as your revenue catches up. For longer-term working capital, you may want to explore bank loans, but be ready with a well-thought-out business plan and established credit history for this option.
Getting personal with your cash flow and scrutinizing your business operating cycle is a great start to making your company more profitable. For advice on business best practices that chip away at inefficiencies, and make your company more successful, download The Ultimate Guide to a More Profitable Technology Business.