How to Survive a Cash Flow Crunch

Andrew Mattner • February 2, 2026

The reality is that at some point, almost every business experiences a cash flow crunch.

This may be because the business has experienced growth too quickly and eroded its cash reserves, or because it has experienced a downturn in trading conditions.

Managing your cash flow during a crisis is crucial for the survival and stability of any business. The below steps can help ensure liquidity and financial health during challenging times.

Step 1: Take Stock and Assess Cash Flow Status

Begin by conducting a thorough analysis of your current cash flow. How much money do you have in your bank, how much do your customers owe you, how much do you owe other people, and how much headroom do you have in your bank facility.

Step 2: Build a 13-week Cash Flow Plan

Prepare a condensed 13-week cash flow plan that maps your inflows and outflows to identify areas where you can cut costs or delay expenses. Then you can create a detailed cash flow forecast to predict short-term and long-term cash needs.

Step 3: Monitor

Establish a daily routine to monitor your cash position. Not monthly, not weekly - daily. This will help you gain back control.

Step 4: Prioritise Essential Expenses

Focus on the most critical expenses necessary to keep the business running. This might include payroll, rent, utilities, and essential supplies. Postpone non-essential expenditures and investments until stability is restored.

Step 5: Improve Receivables

Expedite the collection of outstanding invoices. Offer discounts for early payments and implement stricter credit terms for customers. Regularly follow up on overdue accounts to ensure timely payments.

Step 6: Negotiate with Vendors

Open lines of communication with suppliers to negotiate better payment terms. Extended payment periods or discounts for bulk purchases can provide temporary relief. Building strong relationships with vendors can lead to more flexible arrangements.

Step 7: Communicate with the ATO

Establish payment plans and structures but do not ignore your obligations. Silence here is NOT golden.

Step 8: Reduce Inventory Levels

Excess inventory ties up cash that could be used elsewhere. Optimise inventory levels to match current demand, and consider liquidating slow-moving stock to free up cash.

Step 9: Access Financing

Explore various financing options such as lines of credit, short-term loans, or government relief programs. Maintaining a good relationship with your bank can facilitate quicker access to funds when needed.

Step 10: Cut Unnecessary Costs

Review all expenses and eliminate or reduce non-essential costs. This might include subscription services, travel expenses, or marketing budgets. Streamlining operations can lead to significant savings.

Step 11: Sell Surplus Assets

Realise cash by disposing of equipment or other assets that are not essential to daily operations.

Step 12: Communicate with Stakeholders

Maintain transparent communication with employees, investors, and other stakeholders about the financial health of the business and the steps being taken to manage cash flow.

Their support and understanding can be invaluable during a crisis.

Conclusion:

By implementing these strategies, businesses can better navigate financial challenges and emerge more resilient from a crisis.

Most importantly, remember this: cash flow pressure is incredibly common, even in strong, well-run businesses. You’re not alone in facing it, and with the right plan, structure, and support, it’s something you can work through with confidence.

At Your Success Lab, we work with hundreds of Australian business owners to improve cash flow, increase profitability, and put strong financial foundations in place.

If you want to take control of your numbers and plan with confidence, we’d love to support you.

Get in touch today to start building a stronger, more resilient business.

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Allocating Your Time to Improve Profit

By Andrew Mattner • January 26, 2026

When improving business profitability, many business owners make the mistake of focusing too much on cutting costs instead of striking a balance between reducing expenses and growing revenue. Most business owners and managers simply focus on cutting overheads without balancing their profit-improvement time in other important areas like growing revenue and improving margins. To get the best outcomes you must take a strategic approach to your profit and loss (P&L) statement. This requires allocating your time effectively across key areas: overhead costs, direct costs, and revenue improvement. 1. Overhead Costs (10-15% Time Allocation) Overhead costs—such as rent, utilities, and general administrative expenses—are relatively fixed. While you might be able to cut these expenses by renegotiating contracts, reducing waste, or improving operational efficiency, significant reductions are typically limited to 10-15%. Since potential savings are limited, no more than 15% of your profit-improvement time should be devoted here. Focus on reviewing these costs quarterly and ensure any ongoing expenses still provide value. Key Actions: Negotiate supplier contracts for rent, insurance, and utilities. Identify unnecessary or redundant services. Automate administrative processes to improve efficiency. 2. Direct Costs (30-35% Time Allocation) Direct costs include both fixed and variable costs related to delivering your product or service, such as raw materials, labour, and manufacturing expenses. In my experience, businesses can achieve up to a 30% margin improvement by optimising labour, improving operational efficiencies, and negotiating buying better terms with suppliers. This is a high-leverage area because improvements here go straight to your gross margin. Allocate around 35% of your time to reviewing and improving your direct costs. Key Actions: Improve labour utilisation through better scheduling and training. Optimise procurement processes to secure better pricing from suppliers. Reduce waste and inefficiencies in production or service delivery. 3. Revenue Improvement (50% Time Allocation) The most significant opportunity for profit growth lies in revenue improvement. Efforts to enhance your sales process, increase lead generation, develop new products, or improve pricing strategies often yield much higher returns than simply cutting costs. By focusing half of your time here, you'll create sustainable, scalable profit growth. Marketing, business development, and refining your sales process are key to driving top-line revenue. Pricing is another critical factor—small price increases can have a significant impact on profitability without increasing costs. Key Actions: Optimise your sales process to increase conversion rates. Invest in marketing to generate more qualified leads. Explore pricing adjustments to increase margins. Develop strategic partnerships to expand your market reach. Final Thoughts Improving profitability requires a balanced and strategic approach. By dedicating 50% of your time to revenue growth, 35% to direct cost management, and 15% to overhead reduction, you'll position your business for sustained profitability. Remember, cutting costs has a limit, but revenue growth is where true scalability and success lie. Make this time allocation a regular part of your business planning, and you'll see steady improvements over time.

Remaining Relevant

By Andrew Mattner • January 18, 2026

Introduction: The Challenge of Relevance Over the years, I have challenged several clients and other business owners about the relevance of their current business models. What I am effectively asking in that question is; given what you do today, no matter how profitable, will it still be effective and valuable in 5 years’ time? The Reality Check: Embracing Difficult Questions For some business owners, this is a very challenging question. The answer may be a brutal reality no one wants to face. Why Ask Tough Questions? Given this, why ask the question? The simple answer is because it is the right thing to do. The economy and business world are moving so fast that no matter your level of success today, how confident you are in your business model, how much profit you make, how good your relationships are with customers and suppliers, things change. The Ever-Changing Business Landscape What is the status quo today can be very different tomorrow. The reality is that technology, labour markets, outsourcing, currency movements, and other factors change so quickly that opportunities for new market participants open up every day. Rupert Murdoch said it is no longer a matter of the big eating the small, instead, it is a matter of the fast eating the slow. The Importance of Regular Strategy Review Therefore, it is critical that businesses regularly review their strategy so that they can pivot and adapt given the rapid changes afoot. A Cautionary Tale: I share an example where a failure to adapt led to a business becoming irrelevant and financially untenable. Staying Ahead: The Role of Continuous Strategy Reassessment The most successful businesses revisit their strategy quarterly to ensure that it remains relevant. This enables them to identify issues and make changes to stay ahead of the game. Our Approach to Ensuring Business Model Relevance Our process assists business owners to put robust structures around their business models so that they not only survive but thrive in a fast and ever-changing business environment. Conclusion: Thriving in a World of Change The businesses that thrive through change don’t wait, they plan. If you want to ensure your business remains relevant, competitive, and positioned for long-term success, now is the time to act. Join our Business Accelerator Planning Workshop and build a plan that keeps you ahead. Learn more here .

New Year. New Opportunity. But Do You Have a Plan?

By Andrew Mattner • January 7, 2026

The start of a new year brings fresh energy, new goals, and good intentions. For many business owners, however, it also brings the same challenges as the year before - long hours, responsibility for every decision, and very little time to step back and think. If you’re honest with yourself, do you have a clear plan for where your business is heading this year… and beyond? Or are you hoping things will somehow work themselves out as you go? Hope isn’t a strategy - and growth doesn’t happen by accident. Why the New Year Is the Right Time to Step Back Most business owners aren’t short on ambition. They’re short on time, clarity, and breathing room. When you’re deep in the day-to-day, it’s easy to keep pushing forward without pausing to ask the bigger questions. Are we heading in the right direction? Are we we working smarter, not harder? Is this business working for us - or are we working for it? The new year is one of the few natural moments where stepping back makes sense. Done properly, it doesn’t just reset your goals - it reshapes how your business operates. Strategy Is the Foundation A solid business strategy goes beyond annual targets. It’s about making deliberate decisions around where your time, money, and energy are best spent. That means understanding your budgeting and forecasting so cash flow is protected. It means ensuring the right people are focused on the right work, reviewing suppliers and overheads to identify what’s eroding margins, and being honest about where your time is best spent - and what can be outsourced. It also means creating space to work on the business, not just in it. Without this structure, growth stays reactive instead of intentional. Growth Should Create Freedom - Not Pressure One of the biggest myths in business is that growth automatically brings less stress. In reality, growth without structure often leads to more complexity, more decisions, and more pressure on the owner. We’ve worked with many business owners stuck in what we call business owner jail - where everything relies on them. The turning point isn’t working harder. It’s stepping back and building a clear, practical plan. How We Can Help Our expert team of Business Advisors help business owners turn strategy into action. As your trusted strategic partners, we remove the guesswork from growth by helping you gain clarity, create balance, and reclaim time - while building a more successful and sustainable business. Through a hands-on, practical approach, we work with you to understand where your business stands today, define where it’s heading next, and build a clear, actionable roadmap to get there. Taking a holistic view, we focus on improving top-line growth, creating efficiencies, and strengthening foundations so your business works for you - not the other way around. On both a personal and professional level, we help remove roadblocks, solve problems, and clarify priorities, providing independent insight, proven tools, and a step-by-step plan to help you achieve your goals faster. Make This Year Different If you’re serious about growth and want more time back to focus on what truly matters, now is the time to act. 👉 Get in touch to start building a clear, practical plan for the year ahead: Because the best businesses aren’t built on guesswork - they’re built on clarity, intention, and smart planning.