Cash-flow pressure calls for a clear picture of timing: what money is available, what is expected to arrive and what must be paid. A busy order book is not enough to answer those questions.
A business coach can help an owner establish a review routine and follow through on operational decisions. Coaching does not guarantee positive cash flow and is not a substitute for accounting, tax, financing or insolvency advice. If the business may be unable to meet obligations, seek qualified professional advice promptly rather than waiting for a coaching programme.
Start with a forward-looking cash view
BDC describes a cash-flow budget as an estimate of expected cash receipts and payments over a period. Its cash-flow management guide is a useful starting point for the underlying concepts.
Work with your bookkeeper or accountant to organize the information. Keep assumptions visible, particularly when customer payment dates are uncertain. A forecast is a planning tool, not a promise that the money will arrive.
- Opening cash: Confirm the starting balance and identify any amounts that are restricted or already committed.
- Expected receipts: List when payments are realistically expected, not just when invoices are issued.
- Expected payments: Include payroll, suppliers, rent, tax obligations, debt payments and other relevant commitments with their dates.
- Uncertainty: Note receipts or costs that may change and test the effect of a delay or an unexpected payment.
A simple timing example
This simplified example uses hypothetical Canadian-dollar amounts. It is not a client result or a financial plan.
A business starts a week with $20,000, expects $12,000 in receipts and has $25,000 in payments. The projected closing balance is $7,000: $20,000 + $12,000 − $25,000.
If $8,000 of those receipts moves to the following week, the same calculation gives a $1,000 shortfall. The sale may still exist, but its timing changes the cash position. This example excludes all other movements and does not determine which bills to pay or how to finance a gap.
Take the forecast and its assumptions to the appropriate adviser so you can discuss realistic options before a shortfall occurs. Do not assume new borrowing, delayed payments or a sales increase will necessarily solve the underlying issue.
Turn the review into owned actions
After checking the figures, identify operational questions that the business can answer. Are completed jobs being invoiced promptly? Are invoice details correct? Who follows up on an overdue account? Are disputes delaying collection? Is proposed new work adding costs before cash arrives?
Assign a person and a review date to each agreed action. Any changes to payment terms or commitments should be discussed with the relevant parties and advisers, not assumed. BDC’s working-capital guidance covers practical issues such as invoicing and the cash demands of growth.
Compare the forecast with what happened
Review actual receipts and payments against your assumptions. Investigate meaningful differences and update the next period. Ask whether a variance came from timing, missing information, a one-off event or an ongoing business issue.
BDC provides a 13-week cash-flow forecasting tool. Use a format and review frequency appropriate to your business, with professional help where needed. A spreadsheet can be useful if it is maintained; software does not make incomplete data reliable.
Be clear about the coach’s role
In a coaching engagement, useful work might include preparing questions for your accountant, setting a recurring review, clarifying responsibilities or examining decisions that keep being postponed. Confirm the coach’s relevant experience and the agreed scope.
Do not treat higher revenue or profit as proof that a cash-flow problem has been solved. Nor should an unrelated success story be a forecast of your return. The business coaching ROI guide explains how to separate costs, benefits and attribution assumptions.
Discuss the operating habits behind the numbers
For support with business priorities and accountability, explore business coaching with Joel or book a free 15-minute fit call. This is not an emergency financial-advice service.
Business owners interested in the two-week free coaching offer can complete the assessment and application. Applications are manually reviewed and acceptance is not guaranteed.
