All posts by altitude

Legal Branding

How to Maintain the Cash Flow to Run a Business Successfully?

A report released by the International finance corporation (IFC) indicates that up to 35% of Indian businesses receive payments after 90 days of delivering their services/goods. A majority of the revenue remains inaccessible in the form of receivables. Partly down to the logistic and bureaucratic issues, these not only postpone critical business ventures but also affect its expansion.

To maintain positive cash flow, the ratio between the gross working capital and current liabilities must be greater than 1.

Here are a few ways you can maintain the required cash flow that is necessary for a successful business:

Break-even point

The break-even point does not directly impact your cash flow. Nonetheless, experts state it is a way to set up goals that help you better manage your investments.

Knowing your break-even point allows you to strategize your budget accordingly. Top entrepreneurs consider it an optimal way to improve their cash management skills, enabling a better cash flow in the future.

Maintaining a cash reserve besides gross working capital

A cash reserve ensures that a business has necessary funds to rely on during shortfalls. Experts have stated that every company faces specific financial challenges during their lifetime.

Having proper financial support ensures that your business is not affected by any monetary requirements. Also, any gaps in your cash reserves can be easily overcome with the help of a simple business loan. This not only allows your business to grow freely but also ensures you have steady cash flow even during a crisis.

An early collection of receivables

In order to maintain the cash flow, business owners are advised to shorten their average collection period. Here are a few possible ways to collect receivables –

  • Issue a dunning letter which is a reminder sent to the customer/dealer stating their payment is overdue.
  • Divide the total number of overdue cases. Prioritise on the ones with the most amounts and focus your efforts on collecting them first.
  • You can even dispatch someone to approach them directly and ask for payments.
  • You can withhold the next set of services/goods. Nonetheless, experts suggest you inform them beforehand.

In most cases, it is observed that the key to collecting receivables is to be proactive and continuously following-up on your customers.

Partial payments

It is advised that you ask your customers to make partial payments if they are unable to pay you the entire overdue amount at once. Understand that your net working capital never needs the entirety of current assets available for the transaction into cash.

Partial payments are considered as one of the key cash management tips for seasonal business owners. Top entrepreneurs even ask for partial payment as a security deposit in order to maintain the cash flow. They state that it also encourages them to pay in parts since they do not have to pay a considerable amount of money all at once.

Offer discounts

Business owners are known to offer attractive discounts to customers who are willing to pay before the pre-decided term.

Hire an expert

Large-scale businesses appoint one or multiple accountants to look after the cash flow. Hiring a CFO can become a significant liability for individual small scale businesses. Nonetheless, an experienced CFO does not only with managing the cash flow. They can also help you avoid the common cash management pitfalls occurring in businesses.

Extend payables

When working with your suppliers, it is advised that you decide the longest payable date possible. Consider your current financial situation and contingencies together to decide on such a payable date.

If your gross working capital to liabilities ratio is close to or lesser than 1, the cash flow of your business may not be sufficient to manage future contingencies. In such a scenario, you can consider business loans offered by financial institutions.

Opt for additional benefits that can help you avail the loan with more ease. For instance, Bajaj Finserv brings pre-approved offers that make availing loans quick and simple. These offers are available on business loans as well as on personal loans, home loans, etc.

Top business owners focus on their cash flow as they are aware that it is a critical factor in ensuring the success of their organisation. The points mentioned above are some of the most practised methods by experienced entrepreneurs.

Digital Branding

6 Best White Hat Link Building Techniques In 2019

Link building is considered as one of the key elements of search engine optimization (SEO). But, many webmasters haven’t yet understood the concept well and go on to make mistakes which hurt the SEO.

Acquisition of White Hat links to your website can significantly boost your search engine ranking, but Google has been changing the link building algorithm over the years. Irrelevant comments on random blog posts to build links, no longer work for SEO.

What is Link Building and White Hat SEO?                            

When you get hyperlinks to your website from other websites, it is called link building. What this means is that you are telling Google that your site is relevant and trustworthy, and other sites are directing their users to you. This not only brings visitors from other websites but also boosts your ranking.

There are plenty of techniques for websites to rank higher, but not all of them work. Some are helpful, while some can even negatively impact the SEO. The SEO techniques that work positively and are done using proper methods are called White Hat SEO techniques.

Link building is done using both proper and improper methods. Proper methods can include guest blogs, while improper ones can include commenting on random posts with the link of your site. The proper method of link building is called White Hat link building.

Source – Pexels

White Hat Link Building techniques:                        

  1. Guest blogging

One of the most efficient methods of link building is writing guest blogs for other websites. There are several websites and blogs that allow submission of guest articles. Leverage this opportunity for SEO improvement of your site.

The guest blogging is not only good for SEO but also helps you build relationships with other website owners. If you end up building good networking, chances are that they will allow more submissions from you.

Make a list of the websites that allow guest posts. Explore those websites and ensure that your guest post should be relevant to the niche of their site, otherwise it wouldn’t be accepted. Now contact the site runners and tell them about your experience with their site and your interest in submitting a post.

While writing a guest post, don’t be too promotional about your site. A couple of links in Author Bio and introduction will do. When they publish your work, share it with your customers and social media community. When the guest post publishers will find that your post is also helping them widely, then they would like to publish more of your work.

  1. Ask your network for backlinks

As a website owner, you might be having a lot of friends and relatives who have their own websites or blogs. You can connect with them and ask for adding a link to your site in their next blog post.

If you have partners in your business, then leverage the partnership for link building. You can request a link back or do a deal of including a link to websites of each other in the next article. Further, keep on building your network and use it for your advantage.

  1. Directory submission

There are plenty of good web directories available on the internet where you can list your website or blog. While listing your site on a directory, you should take care of a number of things, like choosing the right category for creating backlinks, checking the domain authority (DA) and page authority (PA) of the directory site, and whether the directory is reliable.

If the DA and PA of the directory site is not of high quality, or if it contains spam links, then it would be better to stay away from such options. The low-quality directories wouldn’t help your site to boost SEO. Research properly before submission so that you can avoid any negative impact on your SEO.

  1. Convert your brand mentions into backlinks

This is another easy method for white hat backlinking. There might be several blogs and websites which have mentioned your brand name in reviews, recommendations, or testimonials without hyperlinking your site. What you need to do is find those mentions using Social Listening tools.

Once you have found all the mentions, build a strategy to reach those mentions via social media channels or contact forms and request a backlink to the mentions. Since there is no harm to those sites in hyperlinking your site to your brand name, they will very likely to do the needful for you.

  1. List your business in local directories

If you are a small business, then a business listing can significantly help you. For example, you can easily list your business on Google for free. Other than Google, there are several more local directories, like Bing, Yahoo, Facebook, TripAdvisor, etc.

The aim of these local directories is to help local users find the relevant places they are looking for. For example, if someone in your area is searching for places nearby, then you can appear in search results. Since the listing will have your website link, it can work for you.

Source – Pexels

  1. Maintain your own blog

Don’t ever underestimate the power of a blog. The reason most of the websites have a blog is that it drives traffic to the site and helps in white hat link building. Maintain a blog and publish posts regularly, which should be relevant to the services or products you provide.

Try to cover everything related to your solutions to make your blog more appealing to visitors. Since the blog posts will be having backlinks to your products and services, it will bring visitors to your site and improve SEO.

Use images and visuals so that the content doesn’t become boring for visitors. Allow users to comment and share the posts on social media platforms right from the same page.

 

Wrapping up:

If you apply the above-mentioned techniques to your website, it will surely work for you. But you have to remember that link building is not going to happen overnight. It will take time as you reach other websites, directories and your network.

Also, never go for black hat backlinking techniques, because Google can penalize your site for it.

Know of more white hat link building techniques? Feel free to share via the comments section below.

 

Auhtor Bio:

Mark Coleman is a passionate writer, currently working as an Editor at MarkupTrend. Markup Trend offers free resources for developers, designers, and webmasters and is updated daily. Mark is available for hire for product and business promotions.