Busy business. Tight cash: Business Navigators
Busy business. Tight cash.
Sometimes the money hasn’t disappeared. It’s just taking its sweet time getting home. 😅
Picture this.
You’ve bought the materials, paid the team, completed the job and sent the invoice.
But the customer won’t pay until next month.
Meanwhile, another job starts. More materials. More wages. More money going out.
The business is growing, but you’re funding the work long before the cash comes back.
Multiply that across several jobs, and suddenly a busy business can feel surprisingly tight.
Here’s a useful little exercise.
Take your last three completed jobs and check:
1. When did you pay for materials and labour?
2. When did you send the invoice?
3. When did the customer actually pay?
The gaps between those dates can tell you plenty.
Sometimes the answer is better payment terms, progress invoicing or simply getting invoices out sooner.
It’s not always about selling more. It’s about making sure the work you’re already doing supports the business.
I’m Lu, Chartered Accountant and founder of Business Navigators.
I help NZ business owners get clarity and control over their numbers, so they can make better decisions.
Based in Nelson & Tasman, working with good businesses across NZ.
If this sounds a little too familiar, let’s have a chat.
Good Business. Made Better.
“Can you sharpen the price?”
Before you say yes, check what it leaves you.
On a $1,000 job with $800 in direct costs, there’s $200 left for overheads and profit.
Take 10% off the price, with those costs unchanged, and you’re left with $100.
The customer saves $100. Your business has half as much left.
A discount can still make sense. It deserves a quick calculation first.
All figures exclude GST.
Business Navigators helps NZ business owners get clarity and control over their numbers.
Good Business. Made Better.
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