Cash is king on the tools

You can be fully booked, delivering great work, and still go under — if the money isn't coming in on time. Cashflow problems aren't just about slow clients. They're about timing: when money goes out vs when it comes in.

Here's how to get on top of it.

Invoice immediately

Every day you wait to invoice is a day later you get paid. Make it a rule: invoice the same day the job is done, or at the very latest the following morning.

If you're running larger projects, invoice in stages — deposit upfront, progress billing mid-project, final payment on completion.

Require deposits

For any job over $500, ask for a deposit — typically 30–50% upfront. This does two things:

It covers your material costs before you start
It filters out clients who aren't serious

Clients who argue about a reasonable deposit are often the ones who'll argue about the final invoice too.

Tighten your payment terms

If you're running 30-day terms, try 14 days. For residential work, 7 days is standard. Most clients won't push back if you're upfront about it from the start.

Put your payment terms on every quote and every invoice — not just in your Ts and Cs buried at the bottom.

Know your numbers week to week

You don't need complex accounting software to manage cashflow. A simple spreadsheet works:

Money coming in this week (invoices due)
Money going out this week (suppliers, wages, overhead)
What's outstanding

Check it every Monday morning. Five minutes of awareness beats a nasty surprise.

Build a buffer

Aim to keep one month's operating expenses in the bank. If you're not there yet, set a target and work toward it. The buffer turns a slow week from a crisis into an inconvenience.

Chase invoices immediately

The moment an invoice goes overdue, act on it. Every day you wait makes it harder to collect. A professional phone call on day one of being overdue gets results that a polite email three weeks later rarely does.