Tips on How to Increase Cash Flow in Your Wedding Planning Business
With the new year here, it’s time to make improvements in our wedding planner business. Where should we start? How about increasing our cash flow? ACPWC shares some great tips from Renee Daggett of Admin Books below.
Increase Cash in Your Business…Today!
By Renee Daggett
Every growing business runs into cash flow problems, and cash is the lifeblood of the business. Just as an airplane needs fuel to get from one place to another, the business need cash to reach its objective. Here are some tips that you can implement TODAY to increase your cash tomorrow.
- Bill your clients more frequently and promptly
- Give early pay incentives and penalize late payers
- Provide more payment options like credit cards or ACH (online draft of checking account)
- Actively work on collecting any overdue invoices
- Control quantities and timing of inventory orders
- Stop unnecessary spending or cut spending for a season
- Repurpose information and sell it to your clients; i.e. create a subscription based product
- Act now or nothing will change!
- Increase your prices to your clients/customers
- Pay bills when they are due, not before
- Watch your numbers weekly and monthly
- Make sure your clients know ALL the services you provide and up sell if there is a need
- Put clients on an auto pay
- Make cash flow a company wide priority
- Ask for a retainer or partial payment upfront
- Comparison shop large purchases
- Stick to your spending plan; budget
- Spread out payments
- Create a referral program
It’s a simple formula: Collect receivables as fast a possible and slow down your payables without jeopardizing your relationship with your vendors.
Some of the ideas above are easy to implement and others will take time to craft, but are well worth the effort. Evaluate your options objectively and you can have peace of mind when it comes to managing your cash in your business.