Grit and Growth Business

Action Plan for Episode 1: Mastering Cash Flow: Four Gritty Moves to Take Control

This Action Plan is designed to help you stop the cash flow chaos, reduce your financial stress, and take back control of your business's financial heartbeat. Don't let fear or overwhelm keep you in the dark. These are concrete, actionable steps you can implement this week.

Your Goal This Week: To gain immediate clarity and begin building sustainable cash flow habits.

THE FOUR GRITTY MOVES TO TAKE CONTROL:

Move 1: The Daily Cash Flow Snapshot

  • Problem: You're not sure how much cash you actually have, or where it's all going. This creates constant anxiety and surprise financial shortfalls.
  • Action: Starting today, commit 5-10 minutes each morning or evening to review your bank accounts.
    • Record your starting balance.
    • List all income (deposits) that came in.
    • List all expenses (payments/withdrawals) that went out.
    • Calculate your new balance.
  • Tool: A simple notebook, a basic spreadsheet (Google Sheets/Excel), or your bank's online transaction history. Don't worry about categories initially; just track the movement of money.
  • Impact: This daily discipline replaces guesswork with real-time awareness, immediately reducing "surprise" moments and giving you a sense of control.

Move 2: The "Get Paid Faster" Blitz

  • Problem: Your money is stuck in your clients' hands. Long payment terms and delayed invoicing create significant cash flow gaps.
  • Action: Identify all outstanding invoices that are 7 days or more overdue.
    • Send polite, persistent follow-up emails or make calls for each overdue invoice.
    • For new clients or projects, clearly state your payment terms (e.g., 50% upfront, net 7 days) and get agreement in writing *before* starting work.
    • Explore tools for easy online payments (e.g., Square, PayPal Invoicing, Stripe) or recurring billing if your model allows.
  • Tool: Your existing invoicing software or a simple list of clients and amounts due.
  • Impact: Accelerating your receivables directly injects cash into your business, reducing the need for desperate measures and improving your working capital.

Move 3: The "Future Cash Flow" Forecast (Simple Version)

  • Problem: You only know what's happened, not what's coming. This makes planning impossible and causes panic when large expenses are due.
  • Action: For the next 4-8 weeks, create a simple forecast:
    • List all expected income (e.g., upcoming project payments, recurring revenue).
    • List all known upcoming expenses (e.g., rent, payroll, loan payments, large material orders, estimated taxes).
    • Compare the two. Do you have enough incoming to cover outgoing?
  • Tool: A simple spreadsheet (two columns: Expected Income, Expected Expenses; two rows: Date, Amount).
  • Impact: This forward-looking view highlights potential shortfalls *before* they become crises, allowing you to proactively adjust (e.g., push for more sales, negotiate payment terms, defer non-essential spending).

Move 4: The "Just-in-Case" Cash Buffer

  • Problem: Unexpected expenses or slow periods derail your business and create immense personal stress. You have no safety net.
  • Action: Commit to saving a small, consistent amount of money specifically for a "cash flow buffer" or "emergency fund."
    • Start with even $25, $50, or $100 per week.
    • Set up an automatic transfer to a separate business savings account.
    • Gradually build this until you have 2-4 weeks of essential operating expenses saved.
  • Tool: Your bank's automatic transfer feature.
  • Impact: A cash buffer provides peace of mind, reduces anxiety, and allows you to weather unexpected storms or seize opportunities without going into debt. It's your ultimate stress-reducer.

Your Commitment This Week:

I will take a daily Cash Flow Snapshot for 5 days.

I will follow up on at least 3 overdue invoices OR implement clear payment terms for new work.

I will create a simple Future Cash Flow Forecast for the next 4 weeks.

I will set up an automatic transfer to start my Cash Buffer.

Taking control of your cash flow is one of the most empowering things you can do for your business and your sanity. You have the grit. Now apply it to your numbers.