Are cashflow problems keeping you awake at night?
You’re not alone. Many entrepreneurs in the team leader phase feel the pressure of making payroll, paying suppliers, or managing monthly bills. You’re growing, your team is expanding, but the money doesn’t always flow like it should. It feels like you’re doing well, but your bank account says otherwise.
That’s not just frustrating – it’s dangerous. A profitable business on paper can still go under without healthy cashflow. So what can you do?
Why this matters
In the Circle of Business model by Bart van den Belt, the blue circle (organization) is the foundation for healthy profit. One of the most important result areas in this circle is finance. Without proper cashflow, you can’t invest, hire, or grow. Fixing this area is key if you want to move from stressed to strategic.
What is cashflow, really?
Cashflow means the movement of money in and out of your business.
- Cash in is money you receive from customers
- Cash out is money you pay to suppliers, staff, rent, taxes, etc.
If more money comes in than goes out, you have positive cashflow. That’s good.
If more money goes out than comes in, you have negative cashflow. That’s a problem.
Cashflow is not the same as profit. You can have profit on paper but still run out of cash if invoices are paid too late, or if you spend too much too fast.
Think of it like a water tank. Revenue fills the tank. Expenses drain it. Even if you’re filling it regularly, you can still run dry if there’s a leak or your outflow is faster than the inflow.
Here’s how you can fix cashflow problems step by step:
1. Create a cashflow forecast
Start by making a simple cashflow overview. Write down what money is coming in and going out each week. This gives you control and reduces stress.
- Use a spreadsheet or financial software
- Plan 12 weeks ahead
- Update it weekly
2. Send invoices faster and follow up
Many entrepreneurs wait too long to send invoices or remind clients. Speed this up to improve cashflow.
- Send invoices right after delivery
- Set clear payment terms (14 days is ideal)
- Use automatic reminders or a debtor tool
3. Cut or delay non-essential costs
Review your spending. Not all expenses are urgent or needed right now.
- Cancel unused subscriptions
- Delay big purchases
- Ask for payment plans for larger bills
4. Improve your gross margin
This means earning more on each sale. Check your pricing, reduce waste, or negotiate better deals with suppliers.
- Review all supplier contracts
- Check if your pricing still fits your value
- Look for cheaper or better ways to deliver your service
5. Create a finance dashboard
In the Circle of Business, one key tool is the growth drivers dashboard. For finance, this includes:
- Revenue per month
- Profit margin
- Debtor days
- Cost percentage
When you track this monthly, you make better decisions.
A common mistake
Many entrepreneurs believe cashflow problems are caused by low sales. Sometimes that’s true, but more often the problem is poor control over money already earned. That’s why the Circle of Business puts finances inside the organization circle, not the customer journey. You fix it by improving systems, not just selling more.
You can grow without the money stress
When your finances are in order, your business feels lighter. You sleep better. You make smarter choices. The Circle of Business helps you build a business that works for you – not one that depends on you.
Start with your numbers. Take leadership. And fix what’s under the surface.
Want help creating a simple finance dashboard? Or want to check where your biggest leak is?
Talk to a coach who works with the Circle of Business model.
