Small businesses are particularly vulnerable in tough economic times. When sales slow, there are still overheads and salaries that need to be covered. Pre-planning and being proactive can help you weather tighter periods.
Practical Cash Flow Strategies
- Invoice promptly — don’t wait. Send invoices the moment work is completed or goods are delivered.
- Tighten payment terms — consider moving from 30-day to 14-day terms, and follow up overdue invoices immediately.
- Negotiate with suppliers — ask for extended payment terms or early payment discounts.
- Review subscriptions and overheads — cancel anything you’re not actively using. Small savings add up.
- Build a cash buffer — aim for 2-3 months of operating expenses in reserve.
- Diversify revenue streams — don’t rely on a single client or income source.
- Use forecasting — a 13-week rolling cash flow forecast gives you early warning of tight spots.
When to Seek Help
If cash flow is consistently tight, it may be time for a professional review. Our team can analyse your numbers, identify the pressure points and help you build a more resilient financial structure.
Book a free consultation to discuss your cash flow.