Pam Newman

Cash is king. That's what everyone tells us, and it is true! You cannot function successfully in any business without proper cash flow. So if this Cash Principle is so well known, why is it that so many businesses struggle?

Sometimes the obvious is not always so obvious when you are entrenched in running the day-to-day aspects of your business, so here are seven ways you can improve your cash flow!

1. Cash and carry. Operate a cash and carry type business versus worrying about receivables. This is not always possible, but the best business plan is one where customers pay at the time of purchase so you don't have to worry about invoicing or collection procedures.

Invoicing and collections take up valuable time, so you want to come up with creative ways to incentivize payment immediately. Set the ground rules in the beginning so your clients know what you expect.

2. Receivables collection. Collect your receivables in a prompt manner. Don't let them hang out there forever until your customers decide they want to pay you. Being a good steward of your business is "good business," so have a process in place for invoicing and collections.