When a company is doing well, it’s easy to lose sight of what your bottom line really is.
Following these tips will allow you to keep a cool head, avoid overspending, effectively manage cash flow and ensure your business runs smoothly.
1. Stick to the original budget.
When a business suddenly receives an influx in revenue, it can be tempting to invest in expensive equipment or fast-track expansion plans that were either not part of the original budget or further out on the road map. It’s a much smarter move to stick to the original budget parameters and save money.
Work on building up two to three months of funds that could be put toward bills and expenses to keep the business afloat in a downturn. Don’t spend money just because you have it.
2. Track expenses.
If there’s a spike in customers, it can be challenging to accurately keep track of all invoices and ensure they are being fulfilled. Leveraging a mobile invoicing app and getting in the habit of creating and sending invoices in real time eliminates the possibility of forgetting to bill customers and missing out on their payment.
3. Hire freelancers.
When business is on an upswing, it can be hard trying to predict how long the boom will last and whether hiring additional full-time employees is sustainable in the long run.
Consider hiring freelancers to take on the additional work.
—Greg Waldorf, CEO of Invoice2go