Cashflow Planning

Toolkit

Strong cash flow management helps regional businesses survive long payment terms, avoid financial stress, and seize growth opportunities confidently.

Resources

Why It Matters

Cash flow is the lifeblood of any business. For regional businesses working with major projects, cash flow challenges are often caused by long payment terms (30, 60, or even 90 days), delayed invoices, and unexpected expenses. Without a clear understanding of income and expenditure, businesses may struggle to pay staff, purchase supplies, or take on new opportunities.

Poor cash flow, not lack of work, is one of the top reasons businesses fail. Proper planning helps avoid these issues and builds resilience.

Steps to Create a Cash Flow Plan

List all income sources

  • Include confirmed contracts and expected revenue from quotes and tenders.
  • Separate confirmed work from potential work.

Track monthly expenses

  • Include wages, rent, fuel, vehicle costs, loan repayments, insurance, and suppliers.
  • Include one-off costs for tools, equipment, or setup for new jobs.

Identify cash flow gaps

  • Highlight months where expenses exceed income.
  • Note risks like delayed payments or cost overruns.

Plan ahead to cover shortfalls

  • Request progress payments or deposits from clients.
  • Negotiate better payment terms (e.g. milestone billing).
  • Consider overdrafts or short-term loans.
  • Delay non-essential purchases or shift spending where possible.

Review and update monthly

  • Use your cash flow forecast to adjust spending or seek support early.
  • Update it whenever you win new work or experience delays.

Tips

  • Be proactive with your bank, bring your forecast to conversations about overdrafts or finance.
  • Don’t underquote, pricing work too low may leave no room to manage cash flow effectively.
  • Use milestone payments, link payments to clear deliverables to improve cash flow timing.
  • Include cash flow forecasts in tenders and funding applications.
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Disclaimer

The information and resources provided in this Business Toolkit are intended for general guidance and informational purposes only. Tactic makes every effort to ensure the accuracy and reliability of the materials contained herein; however, we make no warranties or representations, express or implied, about the completeness, accuracy, suitability, or availability of the content for any particular purpose.

Users of this toolkit are encouraged to seek independent professional advice before making any business, legal, financial, or strategic decisions based on the information provided. Tactic disclaims any liability for loss or damage, direct or indirect, that may arise from the use or reliance on this toolkit or any of its components.

By accessing and using this toolkit, you acknowledge and agree to this disclaimer.