7 Business Cash Flow Strategies In 2021

Written by: George J. Newton

While 2020 was a rough year for everyone in the world due to COVID-19, the pandemic has also taken a toll on many companies and businesses, including small businesses. As a result, many businesses have been scrambling to find emergency funds to keep them financially afloat. Plus, businesses have already adapted to working from home to keep operations going, while others are forced to let go some of their workforce.

So, now that we’re in 2021, how can businesses maintain their cash flows?

In this article, we’ll show you 7 strategies on how to better manage and grow your business cash flow.

1. Borrow Before You’re In Need

“It’s best to prepare for a cash flow problem before it even happens,” says Lola DeSantis, a tech writer at Write my X  and 1 Day 2 write. “Therefore, you’ll need to borrow money during the beginning stages of production, or even when business is running smoothly, so that you avoid being rejected later on when you try to borrow then. Lenders want to see a good line of credit, which is why the beginning stages are a good time to borrow. You may want to get a small business credit card with an interest-free grace period to help support short-term expenses, if you can’t get a loan.”

2. Forecast Your Cash Flow

It’s important to forecast your cash flow to see how it’s faring. Whether you create daily, weekly, or even monthly forecasts, this strategy allows you to be more transparent about your business’s financial situation, and to be more strategic in your company spending habits.

3. Make Budget Cuts

Making budget cuts will be something that every business will have to do, especially post-COVID. Even when you’re financially well right now, cutting back on certain things can prepare you for when you’re really short on money.

First, create a list of regular expenses, and then determine where you can cut costs.  Look for things you can remove completely, and find cheaper alternatives to some items on that list.

4. Know Your Spending Structure

Having a spending structure is just as important as having a budget (and making budget cuts). No matter what kind of policy you have in place, you’ll need to tighten up your spending structure, which means being stricter with what company expenses to make.

When changing your spending structure, keep the following objectives in mind:

  • Focus on why changes are being made.
  • Know that some changes are temporary. AND,
  • Understand that having a monthly budget for expenses is vital to company success.

5. Make Necessary Adjustments To Inventory

All businesses will have to check their inventory, even when the world is still reeling from the pandemic, and scrambling to pick up the pieces. In your inventory, you’ll need to determine the following:

  • Items that aren’t selling well (These can hurt your cash flow)
  • Items that are best sellers (These you can invest more in); AND,
  • Any items that don’t need additional stock.

Remember: Things that aren’t selling aren’t worth investing in. Also, for items that aren’t selling, you can offer them at discounted prices to deplete them.

6. Lease Equipment, Don’t Buy

“When it comes to business equipment, buying new ones can be costly,” says Kimberly Jones, a business writer at Origin Writings and Brit Student. “Even updating outdated equipment can be costly as well, if not time-consuming. However, when you lease equipment, instead of buy, not only will you save money, but that will also make them eligible for tax credits.”

7. Search For New Revenue Opportunities

Every day, more and more opportunities to make money are springing up, just as people have seen through the COVID-19 pandemic. For example, yoga sessions have gone virtual by offering paid sessions online – all clients need is a computer with a webcam and free video conferencing apps like Zoom. So, if you see revenue opportunities in virtual meetups, then go for it.

And, as always, you can take your business online by creating websites on sites like Shopify, eCommerce, etc. By looking for alternative ways to make money, you’re maintaining your cash flow.


As you can see, cash flow management is extremely important for businesses, especially after witnessing the stifling effects of COVID-19. To ensure long-term financial success, and avoid hostile economic crises, be sure to use these 7 strategies in your cash flow management plan.

We hope that this article will help you keep your business afloat! We wish you the best!

Related: Need to Make a Decision? 5 Questions and 5 Tips to Get You Into Action

George J. Newton is a writer and editor at Dissertation writing services and PhD Kingdom. He is also a contributing writer for Buy Coursework. As a business development manager, he oversees various business projects in many companies.