Although your paperwork might show a strong profit, it doesnt mean anything If youre lacking cash flow. One of the most common mistakes made by home business owners is letting customers buy now and pay later. In simple terms, youre giving credit.

Credit works for banks and corporations, not for the home-based business. Cash flow is the soul of your business. Without it, you will weaken and die no matter how many sales youve made or how much is owed to your business.

Your main goal as a home-based business is to guarantee the flow of positive cash flow so a pot starts to build from the overflow. This gives you the opportunity to make early payments so you can gain discounts, to capitalize on deals, unknown opportunities, and cover unexpected predicaments. As soon as your cash flow slows to cover the money you need, problems appear and anxiety and stress quickly follow.

Add these ideas to your current business strategies and reap the rewards of a strong cash flow.

Ask for payment upfront
If your product or service is provided for over a period of time and asking for payment upfront isnt realistic, split up the payments into pieces and ask for payment in advance of each new time split.
For example, if you offer weekly maintenance, think about asking for payment at the first of the month in advance or recommend a three-month payment in advance and offer a perk as motivation. Even a simple 10 percent discount over three months will save a customer about $100. Plenty will run after that carrot.

Pay every bill early
As a car dealer working with all types of customers, think about spending one thousand dollars a month on fuel. If you use a business card rewards program, youll save two percent by paying with the card. That might be small beans, but over a couple of years, it adds up. Take advantage of this perk with every chance and youll save thousands in business that would have been spent on it.

Deposit payments ASAP
Instead of making a trip to the bank every couple of weeks, make them a daily thing. Dont let checks collect dust on the desk. Also, go inside the bank when making a deposit. When you use an ATM machine, it takes away any evidence that you deposited any checks or money. A bad employee or some technical glitch could create unnecessary problems you dont need at all.

Use your business card
This gives you more cash than you could possibly carry and defers payment. Using a business card that awards travel also saves you on future expenses. Youll enjoy the free stuff thanks to air miles.

Create ongoing sales
Create a product or service that your client uses on an ongoing basis. For example, if you run an auto repair shop and your customers struggle with money, mention bank reconciliation services. Helping your customers understand where they are and how they are doing is a service that many will like. One client at paying $50 a month would give you $600. Ten clients paying the same amount, paid upfront would give you $6000 at beginning of the year.

Do the work once, but profit again and again
For example, many business owners are creating e-books and video recordings sharing their knowledge, information and experience that betters the success of others. Selling online eliminates production costs and offers a steady cash flow.

Invest excess profits
Once youve built the business, think about investing a part of the profits to make it grow even more. Having bundles of money sitting in your closet does nothing to rush its growth. Schedule a meeting with a financial planner and find out how you can make your profits work for you.

Begin with these simple ideas and be creative about it. Think about special deals, programs, passive income opportunities and investment strategies. Talk to professionals, learn from associates and your mentor. You must do it. They will help you.