Cash Flow Masterclass 2.3

Increase Your Cash Flow: Daily Decisions That Can Make A Difference

• Healthy cash flow isn’t just about big-picture strategy, it’s the small daily choices that keep money moving.
• Over-ordering stock, ignoring seasonality and letting invoices slide are common traps that tie up cash.
• Simple cash-flow tips, like negotiating supplier terms and building weekly habits, can create more stability long term. 

Flipping the script on old habits could be all it takes to increase cash flow for the long term.

One minute it’s high, the next it’s low; if your business bank account balance is taking you on an emotional roller coaster ride, you’re far from alone. The trick to managing stress and improving your financial position? It’s all about getting comfortable with creating and maintaining everyday habits, insists financial coach and founder of The Profit Analyst, Gavin Smith.

Here he outlines the top habits to get stuck in and happily, some tasks take as little as 10 minutes a week to perfect. 

Q: What everyday decisions have the biggest impact on whether a business has healthy cash flow?

A: Thinking that all the cash in your bank account is yours and making financial decisions based on that future. Retraining your brain to understand that the cash in the bank isn’t just your money – that’s your team’s money, the government’s money, the superannuation and the stuff you haven’t gotten around to paying yet. 

Q: When we think about ways to increase cash flow, what are some solid daily decisions we could be making day-to-day?

A: It’s about rethinking some of our biggest traps – one of which is over-ordering stock. It feels safe to bulk up on inventory but really you’re tying up cash that could be used elsewhere.

We know cash isn’t real until it’s in your account so another trap is letting invoices slide without chasing them. Or paying suppliers too quickly. And there are those who ignore seasonality and refuse to plan for quieter periods. Training yourself to do the opposite of these is essential. 

Q: How can businesses plan better for seasonal ups and downs (and thus, healthy cash flow)?

A: First, look back at last year’s results. Did you peak in summer and slump in winter or was it school holidays that hit you hardest? Learn to understand your patterns so you can save during the highs and plan offers or services to smooth the lows. 

Q: What’s a golden rule for managing supplier relationships?

A: Build genuine relationships. If you’ve been reliable and communicative, it’s easier to negotiate 30-day terms or ask for flexibility when you need it. I’ve seen first-hand how strong supplier trust can give you breathing room when cash is tight.

Q: What’s one simple weekly habit that makes a real difference to your business budget?

A: Cash-flow forecasting. It doesn’t have to be complicated. Ten minutes each Monday is a great start. When you check in weekly, you’re less likely to be blindsided. That habit alone can take so much stress off your shoulders and keep your business moving steadily. 

Disclaimer: The information on this page is solely for educational purposes. It has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances and if necessary seek the appropriate professional advice. Any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of publication, but no representation or warranty, either expressed or implied, is made or provided as to the accuracy, reliability or completeness of any statement made.