Once you’re reviewing your numbers consistently, the next question becomes:
What should I actually be looking for during my weekly review, and what should I do if I don’t have enough cash to meet my obligations?
What Should Be Included in Your Weekly Cash Flow Review?
A weekly cash flow review doesn’t need to be complicated. In fact, most event and creative business owners can complete one in 15-20 minutes.
Review the following:
- Current cash balance in your business accounts
- Client payments expected in the next 7 days
- Bills and expenses due in the next 7 days
- Outstanding invoices and overdue payments
- Upcoming event expenses and vendor obligations
- Projected cash position for the next 30 days
The goal is simple: understand what’s coming in, what’s going out, and whether you’ll have enough cash available to cover your obligations. Cash flow is all about timing. Identifying an issue three weeks before it happens gives you far more options than discovering it three days before payroll is due.
What Should You Do If You Can’t Meet Your Cash Obligations?
If your review reveals that you’re going to be short on cash, don’t panic. The key is to act quickly and proactively.
1. Communicate with Vendors Early
One of the biggest mistakes business owners make is avoiding difficult conversations. If you know you’re going to be short on cash, contact your vendors immediately. Many vendors are willing to work with you if they receive advance notice. They may be able to offer extended payment terms, split payments, or other arrangements. What vendors don’t appreciate is being surprised after the fact. The earlier you communicate, the more they’re usually willing to work with you.
2. Tap Into Your Financial Reserves
This is exactly why every business should have reserves (i.e. a rainy-day fund). Financial reserves provide a safety net during moments of hardship, slow-paying clients, seasonal fluctuations, or when emergency expenses occur.
While building reserves takes time, creating a reserve fund should be a priority for every event and creative entrepreneur. Reserves allow you to continue operating, and avoid making reactive decisions, such as getting predatory loans, during temporary cash flow challenges.
Remember…reserves are a business protection tool—not extra spending money.
3. Accelerate Collections
If clients owe you money, now is the time to follow up. Review outstanding invoices and contact customers with overdue balances. In many cases, a simple reminder email or phone call can speed up payment significantly. You pay also consider pushing add-ons or upgrades to existed customers.
The fastest way to improve cash flow is often collecting money you’ve already earned.
4. Delay Non-Essential Spending
Not every expense has to happen today. During periods of tight cash flow, focus on essentials only and delay non-essential purchases.
This may include:
- Equipment upgrades
- Marketing initiatives
- New software subscriptions
- Expansion projects
Final Thoughts
Cash flow management isn’t just about tracking numbers; it’s about making informed decisions before problems arise. A simple weekly review can help you identify risks, protect your business, and give you confidence in your financial position.
If an issue arises, communicate early, collect what you’re owed, lean on your rainy-day fund when necessary, and stay focused on preserving your cash position.
At EDCAC, we help event and creative entrepreneurs develop practical systems for cash flow management, financial planning, and sustainable business growth. If you’re looking for tools to improve your financial visibility, ask us about our cash flow tracking resources and CFO support services.
Financial Tips for Entrepreneurs and Business Owners
