Profit on paper and cash in the bank are not the same thing. Many small businesses look healthy in a monthly P&L while struggling to pay suppliers on time. The difference usually comes down to timing: when customers pay you versus when you must pay others.
Start with three numbers every week: cash on hand, money owed to you (receivables), and money you owe (payables). A simple spreadsheet is enough. Note which invoices are overdue and which bills are due in the next 14 days. That short view is your runway.
Build a habit, not a perfect model. Once a week, update expected inflows and outflows for the next month. If a big payment is delayed, decide early whether to chase the invoice, delay a non-critical purchase, or adjust pricing. Cashflow discipline is less about fancy software and more about looking at the same numbers on a fixed schedule.
When revenue grows, cash needs often grow faster. New staff, inventory, or marketing spends can widen the gap between profit and available cash. Plan for that lag before you scale spending.
