Problem: You’ve got the Sales Pipeline Forecast sorted out for the next 6 months, but no actual cash on hand. What to do, what to do, OMG!

You can be profitable, but if you don’t have any cash on hand, well… you’re gonna have to shut down your business.

Solution: Well, there are multiple solutions but here are a few that are most likely to work:

1. Find the problem(s)
There must be a reason why your business ran out of cash. Maybe a client didn’t pay or the unexpected happened. Or maybe you just couldn’t sell enough / get enough clients to keep your head up. Whatever the reason is, try finding solutions. Clients don’t pay? Maybe there’s a reason. Maybe they’re not satisfied. Maybe. You couldn’t sell enough? Maybe you didn’t market your product to the right audience, and on and on. Make a list. Find the problem(s).

2. Forecast
Do you know when the next client’s gonna pay, or when the next bit of product is gonna get sold? Good. Put it on paper. Do you also know when you need to pay stuff? Good. Put it on paper (the same one, preferably). Now, what do you see? Do you have enough money to keep you floating (and maybe make a margin, also)? You don’t, ha? Well, see? If you wouldn’t have put it on paper you would have never known it.

So, plan it up. Write everything down. It will show you when you need help (find new clients, sell more products), when you don’t. It will show when you can invest money in your kick-ass product, and when it’d be better if you just stay low.

3. Raise working-capital
So what’s the best way to have a backup for cashflow problems? Raise working capital. You got money on your hands? Lock them in a bank account, and forget about them. They’ll come in very handy when you’ll have problems. And YOU WILL have problems. Try to have working capital for at least 3 months ahead.

4. Prioritize
So, you’re low on cash, huh? Been there, done that. What you could do is prioritize your expenses. What comes first, what doesn’t? You might be able to delay payrolls or rent. You might not be able to delay internet connection or phone. But with proper planning, you’ll get the hang of it

5. OMG, I have no solution. I’m dead!
Well, I think it’s time. If you’ve built a great relationship with ur awesome customers, they will be happy to help you. Really. Been there, done that. If that doesn’t work, then you should start calling your parents / friends / colleagues and everyone-else-you-know-and-has-money.

Cash flow management and forecasting is the most stressful procedure for any small business, but once you get it rolling, it’s gonna save your kick-ass biz.