Increase sales seems like a no-brainer solution. In fact, its usually the stand-by answer when you’re looking for more cash in your business. But, it can actually create a bigger problem. More sales can also mean that you need to increase space (and rent expense), employees (and salary and payroll taxes), inventory (more cash out) and the like. Increasing your sales can very well mean you have less cash for awhile. In fact, businesses can go out of business if they increase sales too fast.
There are five ways to get more cash from your business:
- Increase Sales
- Spend Less
- Reduce Accounts Receivable Days
- Increase Accounts Payable Days
- Reduce Inventory Days