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Unlocking Cash Flow: Key Strategies Every Small Business Owner Should Know

July 18, 202311 min read


Are you a small business owner struggling to manage cashflow? Do you feel overwhelmed by all the details and unsure where to start? In this video, you'll discover how to unlock cashflow through key strategies so that you can take control of your local business today! Stay tuned! As a small business owner, you know that cashflow is the lifeblood of your business.

Without it, you can't pay your bills or invest in growth opportunities. You may have tried to manage cashflow on your own but found yourself overwhelmed by all the details and unsure of where to start. It's hard to make decisions when there are so many options and not enough resources.

That's why I'm here! In this video, I'll show you how to unlock cashflow through key strategies like developing a financial plan, creating a cashflow forecast, building relationships with lenders or investors, utilizing various financial options, setting up an emergency fund - and more! Let me help you take control of your small business success today!

As a small business owner myself, I know how hard it is to make sure that your business is running smoothly and that your cashflow is managed accurately. That's why I'm here to share some of my top strategies that have helped many small business owners.

Let's start with the basics. Understanding cashflow is the key to making sure that your business is successful. Cash flow is the movement of money through your business. It's based on the simple concept of inflows and outflows, meaning the cash that comes into your business from sales, investments, or loans, and it can leave the business through expenses, taxes, or withdrawal.

Cash flow management is important because it helps you see where your money is going and make sure that you have enough cash available to pay for the things you need. In order to manage cash flow effectively, It's essential to keep accurate records.

This means tracking every transaction that comes into and goes out of your business. This information should be recorded in accounting software so you can easily track cash inflows and outflows. You should also make sure to create a financial plan that will help you plan for upcoming expenses and income. This will allow you to better anticipate any potential shortages or surpluses in your finances.

Another key part of managing cash flow is understanding how different financing options work. You may be able to access bank loans, equity financing from investors, or government grants if applicable. Learning about these financing options and how they fit into your overall financal strategy can help you make more informed decisions about where to allocate funds and when to seek additional funding if needed.

Finally, setting up an emergency fund is also important for small businesses - especially during uncertain times. An emergency fund allows you to cover unexpected costs, such as repairs or equipment upgrades, without having to take out a loan, which could incur interest payments over time. Having an emergency fund can provide some peace of mind knowing that there are resources available in case something unexpected happens within your business.

The first step is to create a financial plan. Creating a financial plan will help you keep track of your income and expenses so you know exactly how much money is coming in and out of the business. There are lots of tools out there that can make this process easier. Financial planning is an essential part of managing cash flow. It allows you to better understand the financial picture of your business and make decisions that will help you grow and sustain it.

When creating a financial plan, start with the actual numbers from your financial software for the previous year. This will help you get an accurate snapshot of your finances so you can better project future income and expenses. Make sure to include both fixed costs, such as rent, marketing, or payroll, as well as variable costs, like the cost of materials, sub-contractors, or merchant account fees - these are more difficult because they're related to your sales, so you wanna know what percentage of the sale they are.

Once you have all income and expenses for the previous year, it's important to create realistic projections of where the money is going in the next month, quarter, and year. These projections should be based on past trends, sales projections, and any upcoming changes in the business landscape that could affect cash flow.

Creating these projections will help you anticipate potential shortfalls or surpluses so that you can adjust accordingly. Additionally, it's also important to factor in unexpected events when creating a financial plan - such as holidays, natural disasters, or personal emergencies, so that your business is prepared if something unexpected happens. Finally, it's important to review your financial plan regularly and make adjustments as needed, I recommend monthly.

Make sure to consider any changes in income or expenses since the last review period so that your financial plan accurately reflects reality. Having an up-to-date financial plan will also help ensure that your cashflow management strategies are effective and to help you reach your goals. Building relationships with lenders and and investors can be beneficial for a small business.

Having access to capital is essential for a business's growth and sustainability, and having strong relationships with lenders and investors can help unlock additional financing options. Building these relationships starts with understanding the different types of lenders or investors you may be able to work with. Banks, venture capitalists, angel investors, private equity funds, government agencies, and alternative online lenders - all of these can provide additional resources when it comes to raising capital.

When reaching out to potential lenders or investors, make sure you are prepared by having a detailed, formal business plan that outlines your goals as well as the risks associated with achieving them. Additionally, it's important to understand their terms and conditions before signing any agreements, so you know exactly what you're getting into. Building trust is also key - make sure you have honest conversations about your needs and expectations so that both parties feel comfortable working together.

Finally, be transparent about your financial situation - providing accurate accounting records, and other financial documents will help build credibility and demonstrate that your business is trustworthy. By building strong relationships with lenders and investors, small businesses can ensure they have access to the resources they need in order to grow and sustain their operations over time. There are a number of financing options available to small businesses that can help unlock cash flow.

Bank loans and lines of credit are popular options and can provide short-term capital to cover immediate costs without needing to be paid back until later. Alternative online lenders may often may offer more flexible terms than traditional banks, but often come with higher interest rates. Crowdfunding is another financing option that can provide capital from a variety of sources. This type of funding is best for businesses with an innovative products or services that have the potential to generate strong returns on investment.

It also allows businesses to raise money quickly by reaching out to large numbers of people at once, although it does require significant effort and resources. Another option is venture capital, which is typically provided in exchange for equity or other financial incentives. Venture capitalists are typically looking for companies with high growth potential, so this option is best suited for businesses that have well-defined plans for future growth and expansion.

Finally, angel investors are individuals who invest in early start-ups in exchange for equity or royalties based on future profits. These investors typically understand the risks associated with early-stage investments and are willing to take them on in return for potentially high returns if the business succeeds. Overall, they're, there are numerous financing options available to small businesses - each one has its own set of pros and cons and should be carefully considered before making any decisions.

With careful research and planning, you can find the right financing options to help your business reach its goals while avoiding unnecessary risks along the way. It's also important to set up an emergency fund. Setting up an emergency fund is a key part of managing cash flow for small businesses. This fund can be used to cover any unexpected costs or losses in order to keep the business afloat during difficult times.

It's important to set realistic goals when creating this fund - how much money should be allocated and how often should it be replenished? The amount you set aside will depend on the size and nature of your business as well as the risks associated with it. Generally, experts suggest setting aside three to six months worth of operating expenses in case of any eventualities that could lead to a cash shortage.

Additionally, try setting aside some funds for one-off expenses or investments that could help grow your business but may not necessarily be part of regular operations. The best way to build an emergency fund is by setting aside a certain percentage of incoming revenue each month. Dedicating a portion of each sale to the fund can help keep it topped up without having to dip into profits.

However, if you decide to use profits instead, it's important not to leave yourself short on capital, as this could lead to issues further down the line. Creating an emergency fund is essential for any small business looking to maintain its level of operations during tough times and can help ensure a successful future for the business in the long run. Utilizing the right technology can be a great way for small business owners to streamline and automate their cash flow processes.

From accounting software to mobile apps, there are a number of solutions available that can help manage financial data more efficiently and accurately. Accounting software, such as QuickBooks or Xero, makes it easy to keep track of invoices, payments, expenses, and other financial transactions. Additionally, these tools can provide users with analytics and insights into their business finances which can help inform decisions related to managing cashflow more effectively.

Mobile applications are also becoming increasing popular as they offer a convenient way to access financial reports on the go. Apps like Mint can provide users with real-time updates on spending patterns and financial performance so they have a better understanding of where their money is going. Similarly, mobile banking apps allow users to easily transfer funds between accounts as well as make payments quickly and securely from any device.

By utilizing the right technology, small businesses can stay more organized when it comes to their finances while saving time and energy in the process. This allows them to focus on other core aspects of running a successful business while still having full visibility over their cash flow. So there you have it. Some of the key strategies that every small business owner should know in order to unlock cash flow.

I know that managing cashflow can be difficult, but with the right tools and strategies in place, you can prove to yourself that you can be successful. Registering for my FREE web class on the 3 dangerous pitfalls all small business owners face can help you get started on the right track. Click on the link in the description register, and I'll see you there!

I invite you to leave a comment below this video. Share your stories of success and the strategies that work the best for you. Also, discuss any mistakes you may have made along the way and how you overcame them. Your experiences can help other small business owners avoid costly errors and provide valuable insights into what works in the real world. Also, if you use any specific tools or resources which were particularly helpful in managing cash flow, please feel free to share those as well!

By leaving your comments, we can all learn from each other in order to ensure that our businesses achieve their goals more efficiently. Thank you for taking the time to share your thoughts!

Would you like to learn more about unlocking your cashflow or other topics regarding business success?


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I'm Doug Barra.

I believe it takes great courage to own a local, small business.

For the last 16 years, I've ensured that business owners like yourself get the time, money, and freedom you deserve.

Be sure to click the link in the description to register for the three dangerous pitfalls that all small business owners face, and I'll see you in the web class!

Thanks for watching.

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Doug Barra

With 14 years of experience in working with small and medium sized businesses to help them grow, Doug is committed to seeing business owners thrive. Business coaching is what drives Doug.

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