Cash Flow at Scale: Why It’s Harder Than You Think
When you were running a smaller business, cash flow was often tight, but you could usually see the problem. A late-paying client. A big inventory purchase. A slow month.
But now you’re running a multi-million dollar business. You’ve grown your team, added systems, and signed bigger contracts. On paper, the business is thriving.
And yet, cash is still tight. Sometimes tighter.
You’re not alone. One of the most common frustrations we hear from business owners at this stage is:
"We’re busier and bigger than ever, but I still feel like we’re chasing cash."
Here’s why cash flow becomes more complicated and more critical as your business scales, and what to do about it.
Why Cash Flow Gets Harder as You Grow
1. Revenue Grows, But So Does the Lag in Collecting It
Larger clients often mean longer payment terms. A business that was used to 7-day invoices is suddenly dealing with 45- or 60-day terms.
At scale, the amounts involved are much larger so even one delayed payment can impact payroll, tax obligations, or supplier payments.
2. Overheads Climb Quickly
Scaling usually means hiring, investing in systems, increasing office space, or adding marketing spend. These fixed costs don’t flex with revenue, and they create a higher monthly cash requirement.
If revenue dips or payments are delayed, you don’t have the same buffer you used to. Even healthy businesses can end up tight on cash because their cost base has grown faster than their cash cycle.
3. More Moving Parts = More Timing Risk
You’re probably running multiple service lines or product categories. You may have payment terms with different suppliers, seasonal income, large one-off purchases, or recurring contract work.
All of this makes your cash inflows and outflows more complex. The timing mismatches might not show up on your profit and loss but they hit your bank balance hard.
4. Your Profit Doesn’t Equal Your Cash
This is one of the biggest misconceptions mid-tier business owners face. Profit is an accounting measure. It tells you whether your business is viable over time. But it doesn’t reflect the timing of payments, capital expenditure, or debt repayments.
You can be profitable on paper but have no cash in the bank, especially if:
You’ve made large upfront investments
You’re growing fast and holding more receivables
You’re carrying a lot of inventory
You’re repaying debt on a schedule that doesn’t match incoming revenue
Building a Scalable Cash Flow Strategy
1. Move from Looking Backwards to Real-Time
Too many businesses rely on their monthly P&L to gauge performance. That’s a lagging report.
Instead, implement a rolling 13-week cash flow forecast. This gives you a forward-looking view of what’s coming in and going out week by week so you can plan with confidence.
This forecast should include:
Projected client payments (based on actual terms and payment behaviour)
All regular and one-off outgoings
A cash buffer target for each week
We helped one client implement this during a high-growth period. Within two months, they avoided two near-misses on payroll simply because they could see the shortfall ahead of time and take action early.
2. Revisit Your Working Capital Cycle
At scale, improving your working capital (the gap between when you pay for things and when you get paid) can have a bigger impact than increasing revenue.
Look at:
Debtor Days: Can you shorten payment terms or improve collections?
Creditor Terms: Can you negotiate longer terms with key suppliers?
Inventory Levels: Are you tying up cash in stock that isn’t moving?
Small changes in payment timing across multiple areas can free up significant amounts of cash.
3. Understand Your Fixed vs. Variable Cost Base
As businesses grow, they often lock in overheads that don’t scale efficiently. High fixed costs mean you need consistent, predictable income to stay afloat.
Reassess:
What costs are truly fixed?
Where can you shift to more variable models (e.g. part-time or contract staff)?
Can any roles or systems be outsourced or automated?
This gives you flexibility in lean months and frees up cash when growth slows.
4. Build a Cash Reserve
Most business owners plan for growth, not risk. But a cash reserve is your fallback when things go sideways.
Set a target reserve (e.g. 2-3 months of core operating costs) and build it into your forecast. You don’t need to get there overnight, but treating it like a non-negotiable expense changes your approach to managing surplus cash.
5. Elevate Your Financial Conversations
If you’re relying on your bookkeeper or accountant to manage cash flow reactively, it’s time to bring in strategic financial support.
A Virtual CFO or strategic finance partner can:
Build and maintain your cash flow models
Provide scenario planning
Help with funding decisions or capital management
Act as a sounding board for big financial moves
Ensure you are optimising cash to get the best return
At this level, you don’t just need reports. You need insight.
Final Thoughts
Cash flow at scale is a different game. It’s not just about spending less or chasing invoices faster. It’s about understanding how money moves through your business and putting the systems, habits, and strategies in place to stay ahead of it.
The good news? You already have the revenue. Now it’s about making sure your cash works as hard as you do.
At Olive Business Partners, we help businesses like yours build sustainable, scalable financial foundations. If you’re growing fast but feeling cash-strained, let’s fix that.