How Female Business Owners Can Improve Their Cash Flow
Being an entrepreneur is not easy and often, these challenges are amplified for women business owners. A report on women entrepreneurs notes that aside from the typical entrepreneurial pitfalls, women often have to face other problems. Difficulties such as growing a support network, reckoning with feelings of inadequacy, and getting unsolicited advice can reduce your confidence, lowering your business’ overall impact.
A key part of succeeding as a business is to overcome that fear of failure. However, even with grit and innovative approaches, it can still be difficult for female business owners to manage their finances. In fact, cash flow is a struggle for every entrepreneur. It’s undeniable that money is important for expanding your business, so it’s essential that you take the steps necessary to manage your income. Here are some tips on how you can improve your cash flow:
Put more value on your products and services
Many female business owners hesitate to raise the prices of their products or services because they’re worried about alienating their customers. But if your cash flow is already poor, it may be a sign that you need to charge for what your business is worth and not sell yourself short. Here are some questions you should consider when raising your prices:
· What are the typical prices of my competitors?
· Have the prices of resources or equipment increased?
· Do your products come off as cheap or valuable?
Depending on what your business goals are, it’s still generally better to have greater quality products or services at a higher price. Customers who are willing to pay the premium are more likely to return, when they are given what they paid for.
Collecting payments from clients on time
Often, women struggle with cash flow because there seems to be a taboo against talking about money. To be taken seriously and professionally, female entrepreneurs should invest in the right payment solutions for small businesses, as they will allow them to accept payments from customers who wish to pay by phone, website, or email. Having flexible options can encourage customers to pay on time and anywhere they want, which can help women ensure they get the capital to reinvest in their business. Before starting any client work, make it clear when and how much they need to pay. In case you need to remind them, many digital payment solutions also offer the option to send invoices. Attaching a small message alongside the online invoice can gently let them know when payment is due.
Pay yourself first
While using cash flow to re-invest in the business is great, it’s also crucial that female business owners pay themselves. Given that you’re one of the company’s biggest workers, small business owners should pay themselves for the work they’ve put in. It may be tricky to find a balance between what will benefit your company and your personal expenses, so it’s essential to factor in your needs first, before what your company should do. When your business starts making bigger revenues, it’s good to revisit your salary and even increase it when possible. It’s also important to set aside revenue so that you can stay motivated and work towards business growth. Although it's tough to start talking about money, overcoming that fear of failure is an essential part of the process. By working for the commissions you deserve, receiving timely payments, and investing in yourself, you can improve your business cash flow and take your company to greater heights.