Trending
The first 90 days of a small business are less about proving the idea than proving the cash can move. A sale on paper does not pay rent. A signed contract does not cover payroll until the money lands. New owners often learn this the hard way: invoices go out late, customers stretch payment terms, and a few large bills arrive before the first receipts do.
This checklist is built for that stretch. It is not a full accounting system. It is a practical rhythm for tracking receivables, setting terms customers can follow, and spotting a cash gap before it becomes a crisis.
Before you refine anything else, put the first quarter on one page. List the cash you have now, the cash you expect to collect, and the payments you know are coming. Include rent, payroll, supplier deposits, insurance, loan payments, software, and tax deadlines. If a date is uncertain, mark it as uncertain rather than pretending it is fixed.
Then divide the quarter into three blocks: days 1–30, 31–60, and 61–90. For each block, write the minimum cash you need to keep operating. That number is your guardrail. When the forecast drops below it, you act early: chase an invoice, delay a nonessential purchase, or ask a supplier for a short payment plan.
Use a simple format. A spreadsheet is enough.
If you are unsure how to treat tax or loan obligations, get advice from an accountant before you build the forecast around assumptions.
Receivables are the first place cash flow slips. An invoice that sits in a draft folder for a week is a week of free credit you gave away. Send invoices as soon as the work is delivered or the milestone is reached. Send them to the person who approves payment, not only to the person who placed the order.
Keep a receivables list with five fields: customer, invoice date, amount, due date, and next action. The next action matters most. It might be “confirm receipt,” “call accounts payable,” or “send reminder two.” An invoice without a next action is just hope with a number attached.
Sort receivables into current, 1–30 days late, 31–60 days late, and older. Review the oldest items first. For large invoices, call before the due date to confirm the invoice is in the payment run. For repeated late payers, ask for a deposit on the next order or shorten their terms. Keep the conversation factual: “Invoice 1042 was due Friday. Can you confirm the payment date?”
Set a reminder schedule you can keep: a few days before the due date, on the due date, and then at fixed intervals after it. A short, polite message with the invoice attached works better than a long explanation. If a customer promises a date, write it down and follow up on that date.
Payment terms are not fine print. They shape when cash arrives. Put them on quotes, invoices, and contracts, and explain them before work begins. “Net 30” means little if the customer assumes 60. Say the due date in plain language: “Payment is due 14 days from the invoice date.”
For new customers, consider a deposit or staged payments, especially when you must buy materials or reserve time. For custom work, a deposit is normal. For repeat customers, you can loosen terms only after they have paid on time more than once. Do not let a large order become a large unpaid invoice because you were afraid to ask for a deposit.
Make paying easy. Include bank details, a payment reference, and a copy of the invoice in the same email. If you use a payment portal, check that it works for your customers, not just for you. Late fees and contract terms depend on your jurisdiction, so have a lawyer or accountant review your standard terms if the amounts are significant.
A monthly profit and loss statement is useful, but it will not tell you whether you can pay Friday’s bills. Build a weekly cash forecast for the next 13 weeks. Start with the bank balance. Add receipts you are confident about. Add expected receipts separately. Subtract payments with actual due dates. The result is your projected closing cash.
Be conservative. If a customer has missed two promised dates, do not count that invoice in next week’s balance. If a large payment is “possible,” put it in a later week or leave it out. A forecast that is too optimistic is worse than no forecast because it hides the gap you need to fix.
Update the forecast every Friday. Compare what you expected last week with what actually happened. Ask three questions: Which receipts arrived late? Which payments were larger than planned? What changed for next week? Over 90 days, those answers will show you where your cash habit needs work.
Cash flow is a timing problem before it is a profit problem. Most early shortages come from money that exists on paper but has not arrived in the bank.
New owners often spend cash as soon as it arrives because the bank balance looks healthy. Then a tax payment, payroll, or supplier bill lands and the balance disappears. Treat part of your cash as untouchable. Move tax set-asides to a separate account if that helps you leave them alone. Keep a buffer for fixed costs and known commitments.
Review spending weekly, not just when the balance is low. Pause subscriptions you are not using. Delay equipment that can wait. Negotiate supplier terms before you are
Photo: HungTran90 / Pixabay
