Top 10 Cash Flow Management Tips

Cash flow is quite simply the amount of money coming in and going out of your home business.

When you first start-up this is the life blood of your work; your cash flow determines if you can keep running the business, after all.

Cash flow is pretty complicated for so simple a concept, so we asked Guest Writer Bradley Duke to pull together his top 10 cash flow management tips to help you run – and grow – your home business.

1. Keep Everything Simple And Predictable

Whether their looking at invoices, terms and conditions, processes or order forms, customers and clients will pay more promptly when all of these are easy to understand and sent out at regular intervals.

2. Determine If Time Or Cash Is More Precious

When you have time, bring everything in-house so you can save cash. When you have more cash and less time, get freelancers whose hourly rate is less than yours to help you out. Either way you’ll be helping your cash flow, since wasted time is wasted money and no money is, well, no money.

3. Speed Up Payments With Mobile Payment Options

Options like QR codes make payments as fast, easy and secure as possible. The faster and easier the payment option, the more people will pay straight away.


top cash flow tips for starting a new business

4. Make Time Between Payments Shorter

Do this by using subscriptions, direct debit and shorter time periods for the payment of invoices. When the gaps between payments are regular, guaranteed or shorter, your cash flow doesn’t go through as many peaks and troughs.

5. Keep Your Books Up To Date

This is especially important when you first start out and when you start growing rapidly. You may think that keeping track of your outgoings and incomings isn’t necessary when you have orders to fill, but knowing where you stand on a day-to-day basis can tell you a lot about where your business is and where it needs to be.

6. Use Your Books To Create A Cash Flow Forecast

Cash flow forecasts organise how much money you have coming in and going out each month, so you can see if your business model is unprofitable, anticipate the lean times and schedule certain things, like reinvestment in the company, at the times when you have the most wiggle room.

7. Use Online Tools To Manage Your Money

Many Google Docs users have created cash flow templates for the Google Docs spread sheet program, and Google Chrome has a calendar-based app called PocketSmith that can generate cash flow reports. Google Docs, PocketSmith and the templates all have free options, so you don’t have to record them in the “expenses” column.

8. Treat Expenses Like Actual Money

Go for budget options where you can, and don’t rely on tax rebates to cover all the costs of everything.

9. Find Ways To Raise Cash

Traditionally, business owners would get a bank loan or find an investor to stump up the extra cash, and that is still a popular route. Others are finding new ways to raise money, including crowd funding, peer-to-peer loans and community lending schemes.

10. Pay Your Creditors

...on time, every time, and develop a personal relationship with them. 

If you are on great terms with creditors, they will cut you more slack when you have a dip in your cash flow.

With that, you should feel prepared to go out and manage your cash flow successfully.

Bradley Duke is the UK MD of, founded in 2011, a company that are specialists in mobile payment innovation. Bradley has 12 years of expertise, primarily in the baking sector and has most recently moved over to the mobile payments industry. 

No home business is complete without help from iHubbub's great Business Advice feature - check it out now!

Our Readers Also Liked