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I Thought I Had a Thriving Business—Then the Bills Hit
- Staff Picks
- 15 minutes ago
- 3 min read
Summary:
Why a Strong Sales Pipeline Isn’t Enough Without a Solid Cash Flow Strategy
Just launched your new business and need resources to ace direct marketing at lower costs with higher ROI?
Check out Salesfully’s course, Mastering Sales Fundamentals for Long-Term Success, designed to help you attract new customers efficiently and affordably.
The Sales Were Coming In. So Why Did It Feel Like I Was Drowning?
On paper, things were golden. The product had market fit. My inbox buzzed with orders. Revenue was up and to the right. But here’s what didn’t show up on the spreadsheet: I was perpetually one missed payment away from folding.
It’s the paradox many small business owners face: revenue is flowing, but there’s never quite enough cash in the bank to cover everything. According to a 2023 report from Intuit QuickBooks, 60% of small business owners say cash flow has caused them sleepless nights. And over a third say they’ve been unable to pay themselves at least once because of it.
The mistake? Assuming strong sales = strong business. In reality, a healthy business needs both profit and liquidity.
When Revenue Doesn’t Mean Cash
Let’s break it down. You close a $10,000 deal. Great. But if the customer pays 60 days later — and your expenses come due next week — you’re underwater. This mismatch in payment terms is one of the top causes of small business failure, according to the U.S. Chamber of Commerce.
Even profitable businesses can fail due to poor working capital planning. Cash is oxygen. Without it, your business suffocates — slowly and painfully.
“Cash flow is more important than your mother.”— Michael Dell, founder of Dell Technologies
Yes, he actually said that. And it checks out.
Cash Flow Isn’t About Math. It’s About Timing.
Understanding cash flow vs profit is like understanding weather vs climate. One is short-term; the other is strategic. You might be profitable this quarter, but if you don’t get paid on time — or don’t set aside enough for taxes, payroll, or sudden expenses — you could find yourself tapping credit just to stay afloat.
A good rule of thumb: Track both cash inflows and outflows on a 13-week rolling basis. This lets you see what’s coming up and avoid nasty surprises. (Here's a helpful video walkthrough on how to build a basic weekly cash flow forecast.)
The Fix: Simple but Not Sexy
Here’s what I wish I’d known:
1. Build Payment Discipline
Don’t just close deals. Set shorter payment terms. For B2B contracts, net-15 is reasonable. Charge late fees. Incentivize early payment with small discounts.
2. Invoice Immediately
The faster you bill, the faster you get paid. Use automation tools like FreshBooks or QuickBooks to send and follow up on invoices.
3. Separate Revenue from Spending
Move tax money and operating reserves into different accounts. This “profit-first” method forces discipline.
4. Leverage Invoice Factoring (Smartly)
Selling invoices to companies like BlueVine or Fundbox can help you access cash quickly. Just know the costs.
5. Negotiate With Vendors
Flip the script. Ask for 30- or 60-day terms on your own purchases to reduce cash pressure.
64% of small businesses have unpaid invoices more than 60 days past due
Final Thought
Sales, momentum, and growth mean nothing without a cash buffer. And the hard truth? There’s no glory in working yourself to the bone only to be at the mercy of payment cycles.
Get smart with your money. Build systems that put cash first — not just profit.
Just launched your new business and need resources to ace direct marketing at lower costs with higher ROI?
Check out Salesfully’s course, Mastering Sales Fundamentals for Long-Term Success, designed to help you attract new customers efficiently and affordably.
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