In times of economic uncertainty—whether it’s global instability, election years, or cost of living crisis’s —cash and cashflow is king. It’s the lifeline that keeps your business moving forward. Without it, even profitable businesses can find themselves in trouble. The good news? With the right strategies, you can stay ahead of the storm.
Money in and Money out – Your business cashflow in two parts
Money In: Get Paid Faster, with Less Effort
Improving your inflows is the fastest way to strengthen cash flow. Here’s how:
- Invoice Immediately: Send invoices as soon as work is completed. Delays cost you money and signal disorganisation.
- Tighten Terms: Move to 7-day terms or even COD if possible—especially for new or risky clients.
- Make Payments Easy: Accept credit cards, EFT, BPAY—whatever reduces excuses and barriers.
- Follow Up Like a Pro: Use accounting software to send automated reminders. Chase outstanding invoices promptly—being “the loudest voice” often gets you paid first.
- Enforce Promptly: If a client continues to delay, don’t hesitate to pause service or escalate recovery. Protect your business.
- Lift Revenue: Consider modest price increases or run flash sales to encourage fast payment and cash flow boosts.
- Prioritise Clients Who Pay: Focus your time and service on clients who pay well and value your work. Let go of late payers who drain your resources and energy.
Money Out: Be Ruthless with Spending
Outflows are where many businesses bleed without realising. Stay lean and deliberate:
- Audit Your Budget: Go line-by-line through expenses. Cut what doesn’t contribute to profit or core operations.
- Prioritise Essentials: Always pay statutory obligations (taxes, super, payroll) on time to avoid penalties. Prioritise key suppliers and partners who keep your business running.
- Negotiate with Confidence: Reach out to landlords, suppliers, and creditors. Most prefer a negotiated plan over no payment at all.
- Build a Safety Net: Consider an overdraft facility or business credit card to smooth short-term cash crunches. But use these tools strategically—interest costs can stack up quickly.
Reframe Your Strategy
In a crisis, it’s not about doing more—it’s about doing what matters most. Many businesses make the mistake of trying to hustle harder, take on more clients, or offer more services. But in uncertain times, that kind of activity without strategy can wear you thin. The key is to work smarter, not harder. Strip your operations back to what actually drives results—and double down there.
Focus on your most profitable, reliable clients.
These are the clients who pay on time, don’t quibble over price, and see the value in what you deliver. They deserve your best energy and attention. Identify who they are, deepen those relationships, and find ways to serve them better. Offer them priority support, early access to services, or loyalty incentives. They are the ones who will carry your business through difficult times—and potentially refer more like-minded clients.
Cut or scale back services that create busywork but don’t move the bottom line.
It’s easy to fill your calendar with tasks that feel productive but don’t actually generate income. Now’s the time to critically assess which services are profitable, scalable, and aligned with your strengths. If something consistently loses money, drains your team, or attracts the wrong kind of client—it may be time to let it go. You’re not saying no forever; you’re just choosing to focus on what works now.
Use data from your accounting software to monitor cash flow daily—not just monthly.
Cash flow shouldn’t be a mystery you solve once a month—it should be something you watch like a hawk. Most modern accounting platforms provide real-time dashboards that show cash position, outstanding invoices, and upcoming bills. Make it a habit to check these daily. When you’re clear on what’s coming in and what’s going out, you can make faster, more confident decisions—and avoid nasty surprises.
Final Takeaway
Crisis is not the time to serve everyone. It’s the time to double down on the clients who value you, pay you, and help you grow. When you structure your business to serve them—and only them—you not only survive the crisis… you come out the other side stronger, leaner, and more profitable.
Need help tightening your processes or choosing the right tools to manage cash flow? Reach out—we’re here to help.
This article was inspired by a contribution Alexander made to Dynamic Business in April 2025. Read the full post with Alexanders thoughts and other expectational suggestions by visiting: https://dynamicbusiness.com/leadership-2/lets-talk-business/lets-talk-your-guide-to-healthy-cash-flow-in-a-downturn.html
