Cash Flow Confidence for Very Small Businesses
Field Notes from Tiny Teams
Policies That Protect Your Cushion
01
Deposits and Milestones Without Friction
Ask for partial payment at the start so materials, bookings, or hours are funded. Explain that deposits protect scheduling for both sides, and present them as standard practice, not an exception. Break projects into clear milestones with deliverables tied to invoices. When customers see progress checkpoints, payments feel natural and earned. This approach reduces risk, improves forecasting accuracy, and makes large work feel manageable while honoring momentum and mutual accountability.
02
Late Fees, Discounts, and Clear Expectations
State late fees in writing and on invoices, but lead with empathy and solutions. Pair firmness with helpful options: partial payment today, remainder on an agreed date. Consider small early-payment discounts that reward prompt action. Every policy should answer why it exists, how it protects quality, and what flexibility remains. Clarity prevents surprises and awkward conversations, ensuring your business remains respectful, viable, and ready to serve long after any single invoice is settled.
03
Trust, Credit, and Small Safeguards
When extending informal credit, document limits, terms, and review dates. Use references or lightweight checks for larger orders, and require purchase orders where possible. Keep exposure per client modest so one delay never threatens rent or payroll. Offer installment plans through reputable providers if appropriate. These small safeguards communicate professionalism, protect relationships, and allow you to say yes to opportunities confidently, knowing boundaries and shared responsibilities are clear before work begins.
Forecasts, Metrics, and Habits
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Use a Thirteen-Week Cash Model
