Poor cash flow is one of the biggest reasons small businesses go under — and it’s also one of the most stressful things to live with as a business owner. Here are five ways to improve your cash flow — and stop money stress from ruining your business.

Fi explains what cash flow really is, why so many businesses struggle with it (even profitable ones), and the simple shifts you can make to create more stability, confidence, and breathing room in your business finances.

Listen to Episode 60

What You’ll Learn in This Episode

What cash flow actually is (and why profit isn’t the same thing)
Understanding the difference between money coming in and out of your bank account — and why businesses can be “profitable” but still broke.
The difference between temporary and chronic cash flow problems
How to tell whether you’re dealing with a short-term cash squeeze or a deeper structural issue in your business.
Why paying attention is the first (and most important) step
You can’t fix what you’re avoiding. Fi explains simple ways to start tracking cash flow without overwhelm.
How pricing directly impacts your cash flow
Not raising prices is one of the fastest ways to create cash flow problems — and how underpricing sneaks in over time.
Why your systems matter more than your revenue
The businesses that last aren’t always the ones making the most money — they’re the ones managing it well.
How systems like Profit First support better cash flow
Why separating your money into clear “buckets” helps you stay solvent, pay the ATO, and actually keep some profit.
Why growing too fast can break your cash flow
How rapid growth puts pressure on wages, stock, and systems — and why slower, steadier growth is often healthier.
The concept of fast, medium, and slow money
How having multiple income timelines protects your business and smooths cash flow across the month.
Why relying on one revenue stream is risky
How diversifying income sources and payment timing can stabilise your business long-term.
How to build cash flow that supports your life — not just your business
Why the goal isn’t just “more money,” but calmer, more sustainable financial momentum.

5 Ways to Improve Your Cash Flow (EP#60)

Money Secrets Podcast – Episode 60

Introduction

We've made a lot of progress as a society in many areas, but one thing that hasn’t changed enough is our relationship with money. If we want to tip the scales in favour of marginalised people, we need to understand the secrets to making money in small business.

The more we talk about money — especially the secrets that usually stay behind closed doors or on the golf course — the more empowered we become. My mission is to get more money into the hands of good people, specifically business owners like you.

Because I believe small business can change the world. And to do that, we need to be making more money.

Acknowledgement of Country

This episode was recorded on the lands of the Wurundjeri People of the Kulin Nation. I’d like to acknowledge them as the Traditional Owners and custodians of this land and water that I live, work and play on.

I pay my respects to Elders past and present, and recognise that sovereignty has never been ceded. This always was, and always will be, Aboriginal and Torres Strait Islander land.

Five Ways to Improve Your Cash Flow (and Stop Money Stress Running Your Business)

Poor cash flow is one of the biggest reasons small businesses go under — and it’s also one of the most stressful things to live with as a business owner.

You can be busy, booked out, and even technically “profitable”, yet still feel constantly on edge about money. If that sounds familiar, you’re not alone — and you’re not doing anything wrong.

In this episode of Money Secrets, Fi Johnston breaks down five practical, proven ways to improve your cash flow, so you can move out of survival mode and into a business that actually supports your life, values, and impact goals.

What is Cash Flow (And Why It Matters So Much)?

Cash flow is simply how much money is coming into and going out of your business bank account — week to week, month to month, year to year.

Positive cash flow means more money is coming in than going out.
Negative cash flow means the opposite.

Here’s the important thing, many business owners don’t realise:

Profit and cash flow are not the same thing.

You can be profitable on paper and still run out of money — especially if:

You haven’t set enough aside for tax
You pay wages or suppliers before clients pay you
You’re growing quickly
You invest in stock or systems months before revenue lands

Cash flow is about timing, not just totals.

Temporary vs Chronic Cash Flow Problems

Not all cash flow issues are equal.

Temporary Cash Flow Problems

These are usually caused by surprises — like an unexpected ATO bill or a large expense. They’re stressful, but recoverable once you adjust.

Chronic Cash Flow Problems

These show up as ongoing patterns:

There’s never quite enough money

Bills are paid late

Payment plans are constantly negotiated

You’re robbing Peter to pay Paul

Chronic cash flow stress is exhausting — and it’s one of the biggest contributors to burnout and business closure. The good news? These issues are usually structural, which means they’re fixable.

Five Ways to Improve Your Cash Flow

1. Pay Attention (Without Judgement)

You can’t fix what you’re not looking at.

Avoiding your numbers might feel protective in the short term, but it always makes things worse long term. Improving cash flow starts with simply paying attention.

That might mean:

Reviewing your bank statements from the last few months
Noticing how much needs to go out each month
Using a cash flow report in Xero (the Cash Summary report is a great place to start)

Clarity creates choice. Avoidance creates anxiety.

2. Increase Your Pricing

When was the last time you raised your prices?

If it’s been more than a year, chances are:

Your costs have increased
Your skills and efficiency have improved
The value you deliver is higher than it used to be

Underpricing is one of the fastest ways to create cash flow problems. Many small business owners undercharge because they want to be “affordable”, fear losing clients, or haven’t factored overheads and non-billable time into their pricing.

Even a small price increase can have a meaningful impact on cash flow — without adding more work.

3. Put a System Around Your Money

The businesses that last aren’t always the ones making the most money — they’re the ones managing it well.

Having a system around your money removes decision fatigue and emotional spending.

Fi often recommends Profit First, a system that:

Separates income into different bank accounts
Allocates money for tax, expenses, wages, and profit
Creates clarity about what you can actually afford

Whether you use Profit First or another system, the key is being intentional about where your money goes before you spend it.

4. Slow Down Growth (On Purpose)

This one surprises people.

Growing too fast is one of the most common causes of cash flow stress because costs usually come before income.

You might:

Pay wages before clients pay invoices
Purchase stock months before it’s sold
Outgrow systems that once worked well

Fast growth can look exciting, but it often creates instability behind the scenes. Slower, steadier growth — often around 25% per year or less — gives your cash flow, systems, and nervous system time to catch up.

5. Create Multiple Income Timelines

Fi encourages business owners to think about income as:

Fast money – income that lands within 7 days
Medium money – regular, business-as-usual income
Slow money – larger opportunities that take longer to land

Relying on one payment cycle or one client type increases risk. When money drops into your account at different times from different sources, cash flow becomes smoother and far less stressful.

Cash Flow Isn’t About Hustling Harder

Poor cash flow isn’t a personal failure. It’s usually a sign that something in the structure of your business needs adjusting.

When you:

Price properly
Understand your numbers
Use supportive systems
Grow sustainably
Diversify income timing

Cash flow improves — and so does your sense of safety and ease.

Good Money Club

Are you a female or LGBTQIA+ business owner who wants to make more money and create meaningful change? My 6-month program, Good Money Club, is designed to help you do exactly that.

We work on your pricing, positioning, business model, and mindset — so you can build your bank account and your impact. Read more about Good Money Club.

Final Thoughts

Cash flow doesn’t improve because you work harder, push more, or sacrifice yourself further.

It improves when you slow down enough to look clearly at what’s actually happening in your business — how money moves, where pressure builds, and what needs to change structurally rather than emotionally.

If cash flow has felt stressful or overwhelming, let this be your reminder that it’s not a personal failure. It’s information. And with the right awareness, pricing, systems, and pacing, it’s something you can absolutely change.

You don’t need to fix everything at once. Start with one small shift. Pay attention. Make a decision. Build from there.

Calm, sustainable cash flow isn’t just possible — it’s something you can design.

Outro

Thank you for listening to Money Secrets. If you loved this episode, please subscribe, share it with a friend, or leave a review. Your support helps us get these conversations into the hands of more good people who deserve to thrive in business.

We’ve come so far as a society in many ways, but money is one of the areas where progress hasn’t been enough. If we want to tip the scales in favour of marginalised people, it starts with understanding the secret: money in small business.

In this podcast, Money Secrets, host Fiona (Fi) Johnston—Chartered Accountant, small business advocate, and impact enthusiast—dives into the conversations we need to have about money. The secrets that once stayed behind closed doors (or on the golf course) are finally out in the open.

Fi’s mission? To get more money into the hands of good people, like you. She believes small businesses have the power to change the world, and the key to making a bigger impact is to make—and manage—more money.

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Thank you to everyone involved for bringing this podcast together. We are excited to hear from you with any questions, feedback or suggestions for future episodes that you might have. Send a Direct Message to @peach.business

If you are excited for what’s to come, please like this episode, follow the podcast and share it with your friends. We are thrilled you're here.

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