Why does my profitable business have no cash?

Often because money is tied up in unpaid invoices, stock or growth, or because profit has been spent on drawings, loan repayments or tax. A weekly cash review and a forecast usually reveal where it is going.

How do I get customers to pay on time?

Clear payment terms agreed upfront, prompt invoicing, easy ways to pay, deposits for larger work and a consistent, polite follow up routine.

What is a cash flow forecast?

A week by week estimate of money coming in and going out over the coming months, so you can see tight spots before they happen. Your accountant or accounting software can help set one up.

Can a business coach fix my cash flow?

A coach helps with the business habits and decisions that drive cash flow. For financial, tax and lending advice, talk to your accountant or a licensed adviser.

Cash Flow Problems in Small Business: Causes and Fixes

Profit is an opinion; cash is a fact. Plenty of businesses that look healthy on paper spend every month nervously watching the bank balance.

Here are the common causes of cash flow problems in small business, and the practical habits that help. For tax and financing decisions, your accountant is the right person to talk to.

Book 15 with Tom

Common causes

Customers paying late, or being allowed to
Growing fast, so you pay for staff and stock before the money comes in
Prices too low to leave a buffer
Big annual bills that catch you by surprise
Owner drawings that do not match what the business can afford
No regular look at the cash position, so problems arrive as a shock

Habits that help

Look at cash every week. Cash in the bank, money owed to you, money you owe and what is due in the next few weeks. Ten minutes on a Friday is enough.

Invoice promptly and follow up. Send invoices the day the work is done, with clear terms, and have a set routine for chasing overdue ones.

Ask for deposits or progress payments. Especially on larger jobs, so you are not funding the customer’s project.

Plan for the big bills. Put aside money regularly for tax, insurance and other annual costs.

Review your pricing. Thin margins leave no room for surprises. See how to raise prices in a small business.

Forecast thirteen weeks ahead. A simple rolling forecast shows tight weeks before they arrive.

When it is more serious

If you are struggling to pay bills, tax or wages, get advice early. Talk to your accountant, and look at the support on business.gov.au and the ATO, which has options for businesses that need time to pay. Problems shrink when they are faced early.

Where coaching fits

Business coaching does not replace your accountant. It helps you build the habits around cash: the weekly review, the pricing conversation, the collections routine and the growth plan that does not outrun the bank balance. Our Wobble Check will tell you if cash is your wobbliest area.

Bring one business wobble

Fifteen honest minutes with Dr Tom Hitchcock. Bring the problem you cannot quite name. No surprise proposal ambush and no hard sell. If coaching is not the right move, Tom will tell you, and usually point you somewhere useful.