Financial management

The Cashflow Workout – transform your bank account in 45 minutes a day

- August 20, 2020 3 MIN READ

Cashflow is the blood in the veins of your business. It needs to pump like your heart pumps blood through your body. A good even flow without pressure or blockage. The ability to handle a good Cardio workout without a heart attack. Unfortunately, most owners of small businesses have their eyes fixed on the Cardio capability of their bank account one or two days per fortnight when they need to pay creditors, make payroll or pay the ATO. Cashflow management is Cardio care for your business, like exercise, is recommended daily!

Running your business by your bank balance has always been dangerous, now more so than ever. Turbulent times call for additional focus, clear thinking, and creative endeavours.

We can no longer focus on the past as an indicator of the future of our business. More than ever our focus needs clear future direction.

Your business can get super fit in just 45 minutes a day, it is called Cash-flow-ology; Cardio Care for your Business.

Here is our daily workout!

Get Your Head in the Game (2 Minutes)

Focusing on the lifeblood of your business is not something to be done between phone calls or in the middle of a Job. Take uninterrupted time to focus your attention at building stronger Cashflow.

Update your Cashflow Forecast (5 Minutes)

Your current bank balance is not an indicator of your future cashflow. It is only when we have a forecast updated at least 12 weeks out are we able to see what Cashflow is potentially available to our business. What has come into your bank account and what has gone out? What changes have occurred for future Cashflow requirements – sales made, expenses committed to, government assistance and any other new commitments. Houston, do we have a problem?

Review – Protecting Future Cashflow (3 Minutes)

Our Debtors can become problematic, especially in these turbulent times. Do we understand our customers businesses and have strict Credit Limits in place? Do we have all the legal aspects in place behind the scenes such as Credit Applications and Personal Guarantees? We all would like healthy clients however in and post pandemic this cannot be guaranteed. 

Review – It is a People Business (2 Minutes)

In an era of automation and emails it may still be the relationship with your customers that is key. Debt collection and maintaining the relationship are not mutually exclusive, both can be achieved with the right people in the chair. Collecting debts is not something that is done on an ad-hoc basis, keeping your business heart pumping is far more important than that. Either transact without extending credit or have the processes in place to help secure collection. Most important to think about tomorrow today.

Review – Is there Cashflow hiding in my business? (3 Minutes)

Cashflow can hide in many places in your business potentially creating a blood clot for a business heart attack. This can be Debtors, Stock on the Shelf, Work in Progress, and surplus assets. Cashflow can disappear out of sight of our Profit and Loss when we repay loans, Equipment Finance, Tax Liabilities, Employee Entitlements, impending Bad Debts and Obsolete Stock.

Opportunity – When and Where? (5 Minutes)

In a two-speed economy and everything in between, where is my business at, where is my market and where is the opportunity? Is my business in a waiting game to move forward or is there upside potential right now? How do I maximise my Cashflow – Revenue is Vanity, Profit is Sanity, but Cash is King.

Opportunity – More from Existing (3 Minutes)

Quite often we overlook what is right in front of us. What are the opportunities from our existing client base to get them to buy additional products from us, get them to buy more often, reduce our discounting or increase our prices? We need to keep getting better at building stronger Cashflow.

Opportunity – Business is not Personal (2 Minutes)

When funds are tight, personal stress escalates. It is not a good idea for a business owner to have access to their business account for personal funding. Agree what you will pay yourself and how this is to be done. Critical for your business survival is adhering to both personal and business budgets around cashflow. We do need to make sure we are operating with Lean overheads and best use of technology. Always a good idea to consistently review your cost structure and margins. Accumulate Cash Reserves.

Lights, Cashflow, Action! (20 Minutes)

Now you have your head in the game, your review complete, and identified your opportunities it is time for Action! Its what you do that gets results. If you need a hand, Ask!

Paul Roach is a sought-after business strategist and coach who has worked with hundreds of SMEs across many industries to supercharge their cashflow. As a CPA qualified accountant and serial business owner himself, Paul is perfectly placed to educate, train, and develop businesses in the vital area of cashflow. Smarter Business Stronger Cashflow is Paul’s first book. Find out more at


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