5 Things You Can Do Today to Improve Your Cash Flow Before The End Of 2024

If there’s one thing I’ve found during my career that keeps business owners up at night, it’s a cash flow challenge.

You could have the best product or service in the world, but if the money isn’t flowing in and out of your business at the right pace, things can get stressful, and fast.

The good news is that cash flow doesn’t have to be a constant headache.

By making a few smart moves, you can ease the pressure and create a healthier, more predictable cash flow.

And the best part?

You don’t have to wait months to see a difference.

There are things you can start doing today to improve your cash flow and set yourself up for financial stability as we approach the end of the year.

Here are five practical steps to take right now:

1. Tighten Up Your Invoicing Process

The longer it takes for you to send out invoices, the longer it takes to get paid—simple as that.

I’ve seen businesses delay invoicing by weeks, sometimes even months, and then wonder why cash is slow to come in!

One of my clients had a habit of sending invoices at the end of the month, regardless of when the work was completed. We worked on streamlining his invoicing process so that as soon as a project was finished, an invoice went out the door within 24 hours.

The result? He saw payments coming in much faster, and his cash flow dramatically improved.

Reducing WIP (Work in Progress) for Service businesses, namely work delivered but not yet invoiced, or rotating Stock faster for Product businesses is crucial for optimising cash flow. It starts with monitoring WIP and stock levels on a frequent basis.

Action: Review your invoicing process and make sure invoices are going out as soon as possible. If you’re not doing it already, consider setting up automatic reminders for overdue invoices.

2. Review Your Payment Terms

This is a simple but often overlooked strategy—review your payment terms and consider tightening them.

If you’re currently offering 30-day payment terms, think about reducing them to 14 or even 7 days or payment on order, especially for smaller clients.

You’d be surprised how many customers will accept shorter terms if it’s presented upfront and positioned properly – don’t just assume that this won’t be possible.

On the flip side, if you’re dealing with regular clients who are consistently late payers, it might be time to introduce penalties for late payments or offer a small discount for early payment.

It doesn’t hurt to have a little extra incentive to get that cash in the door sooner.

Action: Evaluate your payment terms and consider adjusting them to encourage faster payments. Reach out to clients to negotiate new terms if needed.

3. Cut Unnecessary Expenses

Take a close look at where your money is going each month.

Chances are, you’ve got some recurring expenses that aren’t adding much value to your business.

Whether it’s a subscription service you’re no longer using, excess inventory, or even utilities that could be reduced, trimming the fat can free up cash that could be better used elsewhere.

One of my clients went through this exercise and realised they were still paying for a software tool that no one on their team had used in over six months.

After cancelling it, they immediately saved hundreds of pounds each month.

Action: Review your expenses and identify anything that can be cut or reduced. Even small savings can add up quickly and give you more breathing room.

4. Boost Your Sales Efforts

Cash flow issues are often a symptom of slow sales.

If you’re not bringing in enough new business, your cash flow is going to suffer.

This is where focusing on your sales and marketing efforts can make a big difference.

Look for quick wins—could you follow up with prospects who showed interest earlier in the year?

Or speak with lapsed / former clients to see if they can be persuaded to return?

Maybe launch a short-term promotion or upsell existing clients on additional services…

A renewed push in sales can quickly turn around your cash flow situation.

I worked with a client recently who ran a flash sale for existing customers on a service that they wouldn’t have to deliver immediately.

It wasn’t a huge offer, but it created a spike in revenue that helped them cover an unexpected expense that would have otherwise hurt their cash flow.

Action: Focus on boosting sales today by following up with leads, running a promotion, or revisiting old proposals. Even small boosts in revenue can make a big difference.

5. Negotiate with Suppliers

Just like you want to get paid faster by your clients, your suppliers want to get paid quickly too.

But that doesn’t mean you can’t negotiate better terms, especially when your trade volume is growing.

If cash flow is tight, talk to your suppliers and see if they’re open to extending payment terms, offering a discount for early payment or even volume rebates.

You’d be surprised how many suppliers are willing to work with you, especially if you’ve built a good relationship over time.

One client of mine managed to negotiate extended payment terms with their supplier during a seasonal dip, which freed up enough cash to invest in marketing efforts that brought in new business.

Action: Reach out to your key suppliers and explore whether they’d be open to negotiating better payment terms or offering discounts for early payment. A little conversation can go a long way.

Improving your cash flow doesn’t have to be a long, drawn-out process.

By making these small, strategic changes today, you can create more stability and set yourself up for a strong finish to the year.

Remember, cash flow is the lifeblood of your business—keep it flowing smoothly, and you’ll be in a much stronger position to grow and thrive.

And if you need help making any of these changes or putting together a cash flow strategy, you know where to find me. Book a free 45-minute session with me today.