Q.Whats one cash flow tip youd give a new entrepreneur whose business is not yet profitable?

The following answers are provided by the Young Entrepreneur Council (YEC). an invite-only organization comprised of the worlds most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab. a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

1. Spend Slowly and Steadily

There is no reason to take more financial risk than you need to when your business isnt profitable. Allocate funds toward essential business operations that will take you to profitability first and foremost. By ensuring youre spending only on essential operations, you can reduce the amount of debt you accumulate and thus the financial risk you take with your business.

2. Outsource to Save on Hiring Costs

You don’t want to run out of cash before you even get your startup off the ground, so you need to calculate and closely monitor your cash burn. If you’re bootstrapping, one effective way to lower your cash burn is to outsource non-core functions such as accounting, finance and HR. Outsourcing, rather than hiring, offers significant savings that help reduce your cost structure.

3. Offer Small Discounts to Those Who Pay Early

Offer a small discount to customers who pay invoices early, and you may not only improve cash flow, but also impress your customers and ensure a long-term relationship.

4. Pay Yourself

It might seem counter-intuitive, but if you are investing in your business, make sure to take some of the stress away from yourself. Paying yourself has the dual benefit of freeing up your mind space and helping you realize what the real cash-flow target of your business needs to be.

5. Negotiate Receivable Terms

In my first business, my net 90 terms were absolutely crushing my cash flow. After several emails with my two biggest clients, I negotiated the terms down to net 15 and net 30. If I hadnt made this move, Im not sure I would have been able to cash flow through the startup phase. If your business is outside the law or medical industries, realize most industry standards are negotiable.

6. Know Your Burn Rate

I often come across early-stage entrepreneurs who dont know how much they are losing on a monthly basis. As a founder, you should have intimate knowledge of your finances. Specifically, you should know how many months you have until you run out of cash. Also, you should know how much you spend on research and development, sales and marketing and general and administrative costs.

7. Ask Customers to Pay Upfront

8. Compensate in Stock

Dont be shy to ask your employees or fellow founders to take part of their pay in stock until you can turn profitable as a team. Not only will it help with cash flow, but also it will provide them with the extra motivation to help turn profits quicker.

9. Use a Charge Card

Many entrepreneurs dont know about the benefits of a charge card versus a credit card. Charge cards offer much larger spending limits, though the charges cant be financed over a long period of time. If youre looking for a way to improve cash flow during short periods (while you wait for receivables, for example), a charge card is an excellent way to drastically increase your purchasing power.

10. Collect Customer Payments First

11. Negotiate Everything

We never accept the initial pricing for any service or product. Theres almost always some flexibility, and if you dont ask, youll never know.