Mastering Cash Flow Management

10 Strategies to Improve Business Liquidity

For startups, cash flow isn’t just important — it’s everything. With 82% of businesses failing due to poor cash flow management (JP Morgan), mastering this skill can literally make or break your startup. Here’s your startup-focused guide to optimizing cash flow and extending your runway.

1. Forecast Like Your Startup Depends on It (Because It Does)

Anticipate cash crunches before they happen. Use tools like Float or Cashflow Plan by QuickBooks to create rolling 12-month forecasts.

A pro tip is to build multiple scenarios (best case, worst case, likely case) to stress-test your startup’s financial resilience.

2. Turbocharge Your Receivables

Slow-paying customers can kill your growth momentum. Some quick wins often include:

• Offer a small discount for early payments (e.g., 2% if paid within 10 days)
• Use automated invoicing and follow-ups
• Accept multiple payment methods, including credit cards and digital wallets

Consider factoring or invoice financing for large B2B receivables to get cash immediately.