To help celebrate the event, we figured we’d offer some advice to small business owners in San Francisco to help solve their cash flow problems—if not avoid them altogether. With that in mind, here are three tips that should help improve your cash flow situation:
1. Pay your employees well
On some level, we all work for a paycheck. After all, we need money to survive. You may be tempted to skimp when it comes to salaries, but you can’t expect your best employees to stick around if you’re paying them incredibly low wages.
When employees leave, in addition to losing your top talent, your business is bound to incur all sorts of costs associated with recruiting, training, and onboarding new hires. Depending on who you ask, it can cost anywhere from 6 months’ salary to two years’ salary to replace an employee. Pay your staff well right off the bat, and you should see your retention rates improve—which translates into healthier cash flow.
2. Invest in new technology
The right technologies make the lives of your employees incredibly easier. For example, using a collaboration platform like San Francisco-based Asana can help your staff stay on the same page—wherever they happen to be. A small investment in a similar platform can drive significant productivity growth. Cash flow improves as your team is able to take on more projects.
3. Partner with local businesses—like Fundbox
Every small business owner knows what it’s like to wait for a check to come in. If you’re struggling with cash flow problems, rest assured that you’re not alone. According to our research, 64% of small businesses are affected by clients that don’t pay their invoices on time. Unfortunately, without access to cash, business owners are forced to delay initiatives, reduce staff, or worse yet, shut their doors permanently.
There’s no shortage of innovative businesses in San Francisco, and we like to think we’re one of them. Fundbox was created to help small business owners overcome their cash flow problems so they can grow their organizations. Create a Fundbox account, and you can begin advancing payments on your outstanding invoices. Simply choose the invoices you want to clear, click a button, and funds are deposited in your bank account within a day or two. You then have 12 weeks to repay the advance, plus a small fee.
You don’t have to go it on your own. There are a ton of great companies in San Francisco doing amazing things. You just need to find the ones that make the most sense to partner with. You never know how transformative a relationship can become. Good luck!