Do you feel like your company doesn’t have enough control around cash burn? Don't panic! You still have time to decrease burn and increase runway. Check out these six ways to get going:
1. Create cash flow budget.
It helps you understand how your business is performing, where your money is going and coming from, and how much you will need to pay for future operational expenses. It also promotes capital efficiency.
2. Track your performance.
Review your budget to see where you're spending money unnecessarily and to identify costs you can potentially lower. Perform monthly budget versus actuals (BvA) to analyze how you are tracking and adjust spending.
3. Increase revenue.
Generate cash inflows to offset outflows and gives you more room in your budget for expenditures you really need.
4. Consolidate your debt.
You can reduce your business debt and what you pay in interest, fees and maintenance costs, by consolidating debt.
5. Alternative financing options.
If you need to increase your cash flow, consider invoice factoring. This allows you access to working capital by selling your invoices to a factor.
6. Consult with experts.
Engage experts to help you create a budgeting process and analyze its results.
It's important to monitor your business' cashflow. If you are not sure on the situation of your cashflow, contact VCG for a 30-minutes free consultation. Our finance experts can assist you with data analysis, interpretation, and reporting so that you can make better strategic decisions.
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