Profit without cash is not a winning formula in the long run. If you don't have cash on hand, hiring employees or doubling down on your successful marketing campaign is 10 times harder. Want to make sure you don't fall into that trap? Here are two great tips to help you stay afloat and keep cash flowing consistently into your business:
1. Invoice right away.
The faster you invoice, the faster you get paid. When you invoice your customer immediately, this makes your life a lot easier. Why? They still remember all the details of your service, and they won't argue with you over the fee. If you wait a couple of weeks, your customer might have forgotten about the extra work you did or how they promised you a larger fee for a faster turnaround.
2. Ask for deposits.
Consider getting an up-front deposit before getting to work on a project, especially when working with new clients. Getting one-third or half up front helps with your cash flow and reduces the risk of miscommunication. Deposits also tend to scare away bad clients--the kind who would only hurt your cash flow in the long run anyway.