The emotional cost of waiting to get paid and how to fix your cash flow

It’s a quiet afternoon, and you sit by the window with your laptop open, looking at all the invoices you sent in the last week. You refresh your banking app and wait for the payments. You tell yourself it’s okay. You’ve been through this before. You know you can manage the bills, stretch the groceries, and make it work for a few more days.

Something you read recently drifts into your mind; almost 37% of entrepreneurs have thought about walking away from their businesses in the past year because of cash flow struggles. You pause, letting the thought settle. Maybe you’ve felt a little of that, too. But even in the quiet doubt, there’s a part of you that still believes in what you’re building.

Your eyes land on your journal. Maybe, you think, it’s time to let some of the weight out. You open it slowly, letting the pen hover for a moment before you begin jotting down how the financial strain of poor cash flow has affected your emotional and mental well-being. 

Maybe knowing what you are struggling with can help you find a way to fix your cash flow, healing both your business and yourself. With this hope, you start journaling. 

The waiting results in restlessness

You tell yourself to be patient. To trust. But the longer the silence stretches, the harder it becomes to sit still. 

You find yourself reaching for your phone at red lights, checking your inbox before your eyes are even fully open. It’s no surprise, really – waiting for payments can take a serious toll on your mental state. It disrupts your ability to focus on the work you love to do, and instead, you find yourself consumed by the anxiety of the “what ifs.”

You remind yourself that everything will be okay. After all, at least 26% of business owners report that their cash flow problems improve with time and through practical steps. But the uncertainty still lingers. 

It steals the simple joys

The effects of poor cash flow ripple through your day-to-day business operations. Even simple tasks you once enjoyed, reviewing new proposals, meeting with clients, or updating your social media, start to feel like burdens. When cash flow isn’t consistent, it’s hard to keep that sense of motivation and optimism that drives your business forward.

Now, even your most productive hours are clouded by the ticking clock and the worry of unpaid invoices. Instead of celebrating small wins with clients or looking forward to building out your next big idea, you’re caught up in a constant loop of checking your bank accounts.

Intrusive thoughts and sleepless nights

Throughout the day, you catch yourself calculating what’s left in your account. Replaying conversations with clients and wondering when the late payments will come through. Your mind racing with scenarios of what could happen if the payment doesn’t arrive in time. 

Will you be able to cover payroll? What if you miss that rent deadline? And then, you remember all the things you’ve been putting off: new stock orders, important bills, and the upcoming loan repayment. This unpredictability affects your plans to restock inventory or commit to a new project with complete confidence. 

As an economist at Xero explains, “Small businesses have lots of their own payments to make, such as wages, rent, loan repayments, and buying new stock. If the small business is being constantly paid late, it can mean they have to dip into retained earnings or take out a loan to cover their own bills while they wait for the late invoice payments to come through. This can then put them in a tight spot financially, especially with today’s high interest rates.”

The thought that your business could be at risk, simply because you haven’t been paid on time, is enough to keep you up at night, consumed with intrusive thoughts and concern for your business’s finances. 

The fear of failure

That nagging thought, “What if it doesn’t work out?” grows louder. Failure feels like it’s always just around the corner, even though you’re doing everything you can (and more) to stay afloat.

In moments when the fear is too much, you try to think of that entrepreneur, who shared how this fear affected his life. 

“I’d barely earned anything in years. We were sinking into debt, as entrepreneurs do.”

As you remember his words, you feel a sinking feeling in the pit of your stomach. This entrepreneur poured everything into his business. He worked tirelessly, convinced that pushing through the fear was the only way to make it. 

“You can’t work long hours every day, under immense stimulation (not always stress), with a newborn, and bills you often can’t pay, without something giving.” In the end, the long hours and constant pressure caught up with him, and he faced burnout.

You feel like this, too, this pull to work endlessly, to make up for lost time. You realize it’s understandable, but it’s also important to take a step back and recognize when the pressure is too much. You’re doing your best, and that effort is what counts. But finding a balance between managing your business and taking care of your well-being can help your business, your health, and your happiness, too.

Mood swings affect relationships with clients and vendors

As the stress of poor cash flow builds, it’s easy for your emotions to shift. One moment you’re focused and motivated, and the next, the worry creeps in. It’s hard not to let that affect how you interact with others.

But the weight inside you spills over sometimes, in distracted meetings or feeling frustrated with delayed payments and slow responses from customers. You don’t want to be this version of yourself. 

“So, what can I do?”

You’re doing your best, and sometimes, that means taking a moment to breathe and reset. The pressure of managing everything can be taxing, but it doesn’t define who you are or the quality of your work.

But what about the cash flow? How can you take control of it to ease the stress? You shut down your journal with a sigh of relief and get to work, looking for ways to fix your cash flow. 

Here’s how you can fix poor cash flow

When you’re in charge of multiple responsibilities, like managing clients, handling invoices, and keeping track of expenses, it’s only natural that you constantly worry about the money. However, worrying alone is not going to fix any problems. If anything, it’s going to make everything much harder. There are solutions that can actually help improve cash flow.  While they won’t make everything perfect overnight, they can offer you the certainty and control you need.

1- Real-time payment platforms

Around a third of small businesses that adopted real-time payment methods in the past 6 to 12 months have reported positive outcomes: 31% gained access to a new customer base, 30% saw reduced payment times, and 28% were able to retain more business. 

Even though it may seem like a small step, this can help ease the pressure, allowing you to keep operations running smoothly.

2- Set clear payment terms

Being upfront with clients about your payment terms can avoid misunderstandings. It can also reduce the anxiety of wondering when you’ll be paid.

3- Offer discounts 

If it’s feasible for your business, offering a small discount for early payments can be a great incentive for clients to pay on time. You might be surprised at how many people appreciate the opportunity to save a little, and in return, you get the funds you need sooner.

4- Trim your expenses 

Small businesses often face high expenses, so why not take a second look at your budget? Cutting down on unnecessary costs, such as overspending on supplies you no longer use or excess inventory, can free up more of your cash flow and ease some of that financial burden.

And here’s a tip: watch out for the sunk-cost fallacy. It’s when you keep investing in something just because you’ve already spent money on it, even if it’s not helping your business anymore. For example, you might feel like you need to keep paying for a subscription you’re not using. But letting go of things that aren’t serving you can actually save you money and help improve your cash flow.

5- Review your books 

By reviewing your financial reports regularly, you’ll know exactly where you stand. This knowledge allows you to make informed decisions and stay ahead of any potential cash flow hiccups.

Also read: The impact of accurate bookkeeping on cash flow management

The bottom line

Remember, it’s the little things that add up over time. Negotiating more favorable payment terms, reviewing your pricing strategy, and being mindful of your expenses can all help build a healthier cash flow.

But while you’re managing the financial side of things, don’t forget to prioritize your mental health, too. As Dr. Joyce says, “When you’re investing in your mental health, the positive ripple effect is quite profound in all areas. On a personal level, on a relationship level, and on a physical level. But there is also a true return on investment in terms of our business.”

And that’s where CoCountant can make a difference, helping you streamline your finances.

Through our bookkeeping services for small business owners, we make managing your finances easier by:

• Tracking income and expenses in real time, ensuring you always have a clear picture of your cash flow and financial health.
• Accurately categorizing every transaction, providing better financial insights and making tax preparation stress-free.
• Properly recording future revenue and expenses, keeping your cash flow predictable and on track.
• Tracking every bill and matching invoices, reducing errors and ensuring no payments are missed.

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