Shorten the gap between doing the work and getting paid, so cash flows faster and the business is less starved.
Examine each stage of the cash cycle and tighten it. Many cash crises are not profit problems at all; they are cycle problems, cash trapped in slow receivables or paid out too early. For each stage, note where cash is trapped or leaking and how you will tighten it.
| Cycle stage | Where cash is trapped or leaking | How to tighten it |
|---|---|---|
| Invoicing speed | How fast you bill after the work | |
| Getting paid (receivables) | Terms, follow-up, deposits, faster payment | |
| Paying out (payables) | Timing bills sensibly without straining relationships | |
| Inventory or work in progress | Cash tied up between spend and sale |
Invoicing faster and collecting sooner are usually the biggest, quickest wins, because that is cash you already earned but have not yet received. The goal is a shorter cycle overall: less time between spending money and getting it back.
Cash discipline is a practice, not a rescue. Set the standing rhythm that keeps cash watched continuously.
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