Ask Entrepreneur

How can I improve my cash flow?

I have a IT company. We have our own portals. These are our long term projects. But the problem is managing short term financing to pay office rent, salary and day to day basic expenses. Once we launch our projects things will improve but for the time being I'm facing problems regarding managing expenditure.
There are a couple of different things that can help with cash flow:

1. When working with a client, request a down payment up front and/or do incremental billings so that you have cash flow throughout the project vs. just at the end.

2. Supplement your long term projects with short term to mix the cash flow cycles.

3. Depending on your credit and length in business, some businesses find it helpful to get a line of credit to help during the slow months. Just don't rely on this all the time or the cost of financing may eat up your profits.

Share Your Thoughts

Today's Editor's Picks

About ASK ENTREPRENEUR

Ask Entrepreneur is a question-and-answer forum for and by the Entrepreneur.com community. Send in your burning business question, or comment on someone else's now. Have a Question? Ask Now

Topics (over 1000+ answers)

Ask Entrepreneur Q&A Hangouts

Google + Hangout With Shark Tank
Google + Hangout With Jason Falls
Google + Hangout With Angela Jia Kim
Google + Hangout With Grant Cardone

ASK Quick Tips