6 Tips to Create Cashflow for Plumbers
Having your own plumbing business is a great thing. You get to work the hours you want, take holidays when you want, and answer to pretty much no-one. But it also means that you need to regulate your own cashflow and make sure you have enough money to live the life you want.
Sometimes it can be hard to get paid, which then affects your own spending. This is a common problem for many small businesses and can be helped with a few small steps:
How to improve your cash flow
- Invoice fast – This is a pretty obvious one, but procrastination can get the better of us sometimes. The faster you send those invoices out the faster your clients due date comes around. It can help to carry around an iPad or smart phone and set up mobile invoicing through a cloud accounting system to help you do this.
- Make it easy for clients to pay straight away – offer your clients different options to pay you right away. Many people don’t carry cash these days so purchasing a portable EFT machine from the bank can be a great investment. It means you’ll get money straight away and won’t be left chasing the money.
- Go steady – Business is picking up and you want to expand fast but don’t get trapped by the excitement too soon. It pays to think about where the money is going and what you’ll need in future. Don’t splurge on that new ute or order too much extra equipment without crunching the numbers first.
- Get help – Accountants can help sort your finances out. Especially if they are experienced with small business or tradies. They can help you get organised and give you tips on cash flow and prioritising.
- Stay regular – Try giving yourself a reasonable wage regularly rather than grabbing chunks of cash from your business bank account. Use direct debit where you can with bills, and track what is paid regularly. It will give you a better idea of where you are sitting financially.
- Save where you can – Take a look at your current bills, subscriptions and policies to see where you can save some money. If a membership isn’t doing it for you anymore, give it the flick, or if you’re no longer using a service then cancel the subscription. Likewise, if you haven’t looked at your insurance or updated your broker on new business details in a while – take a second look and see if you can save some money here.
By applying some of these cashflow tips you could see yourself chipping into some great savings and truly having a positive financial impact on your business. Our friends at Connect Business Insurance offer insurance exclusively to tradies which means they know what insurance package can best suit your business needs. Contact Connect Business Insurance today at www.connectbi.com.au or fill in their easy online form.
As always, you can contact us if you want more information on how to improve your cashflow.