In order to remain open for any considerable amount of time, a business needs to have an inbound cash flow. This can be accomplished with the help of some clever IT solutions. We’ll discuss how, but first we have to get a deeper understanding of what makes a good cash flow.
Examining Cash Flow
There are three parts to any successful cash flow:
Putting Theory into Practice with Technology
Well, as easy as it is in theory, implementing these parts can be a challenge without the right tools. Fortunately, there are plenty of solutions that can help you to encourage all three with the help of information technology.
Let’s break down the three parts again and define what they mean in terms of technology and IT solutions.
This can be rephrased to say:
Leveraging IT to Accomplish These Goals
There is an incredible amount of technology in the world today that can benefit a business through multiple avenues, although there are a few specific tools available now that can assist with each of the parts of your business’ cash flow.
New money is coming into the business / More clients are being signed on to services
This is how your cash flow is initially generated, so it is a crucial part of the process. In order to make money, you need to find people who are willing to pay you to provide them with some good or service - and perhaps more importantly, keep them and the rest of the people important to your business organized.
A customer relationship management system can help you do so. These programs are designed to fulfill that very need for business organization, keeping you from juggling your crucial data and allowing you to make better inferences that inform your actions. A good CRM platform will allow you to track your progress and responsibilities, allowing you to act proactively and optimize your business strategy.
Money is coming in faster / Billing is made more efficient and easier
The vast majority of businesses were formed with one goal in mind: to make money. This is accomplished by selling goods and services. However, these sales need to be tracked in order for payments to come in accurately, yet in a prompt manner. Moreover, customers and clients may need to be reminded that they have a balance to settle. There is no shortage of tools and systems to assist you in this regard.
Whether your CRM also includes a baked-in finance management tool, you use another service, or you even keep an impeccably organized spreadsheet, you need to make sure you know where your funds are coming from and where they are going.
Less money is going out than is coming back in / The business is making more money than it is spending
This is the kicker - the final, crucial piece of profitability: are you actually making a profit?
One of the keys to this is to spend your budget wisely and take advantage of the capabilities that modern technology offers. Which scenario sounds like it would be more expensive, struggling with the same IT issue day in and day out, hiring someone to come in and fix it every time it drives you too crazy (only to have it pop back up later)… or have experienced professionals monitor your IT remotely, identifying and actually resolving issues like those--before you even knew they were there--all for a predictable monthly fee?
Successfully budgeting your business is the cornerstone to making it profitable, and the more predictable costs you incur, the better your budget will work for you.
BNMC can do all of this for you, and more. Reach out to us at 978-482-2020 to learn about our other services, or more about something mentioned above.