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If your business is growing but cash is always tight, then the below is for you.

I’ve worked with a lot of SMBs over the last 15+ years. Many of them have grown from $2M to $5M to $10M+, but growth alone doesn’t guarantee success. 


This is the story of two such businesses:

  • Same turnover — around $10 million.

  • Different industry (but that wasn’t the issue).

  • Both were technically excellent and in demand.

  • But only one is still trading today.


Let's look at what made the difference.

Growth Without Guardrails

Business 1 looked like a success story.

  • Sales were strong.

  • Work was flowing.

  • The team was growing.

So they did what many ambitious owners do — they invested in new gear, upgraded plant, and pushed hard to keep growing. 

But under the surface, trouble was building fast.

Here’s what went wrong:

  • Paid for long-term assets using short-term cash. 

  • They ignored early warning signs. 

  • Took out debt they couldn’t service with existing turnover. 

  • Ignored IRD obligations. 


  • Accounts receivable dragged out to 60+ days. 

  • Pricing and margin weren’t reviewed properly. 

  • Back-costing of work wasn’t being done. 

  • Took too much cash out of the business personally. 

  • Stopped chasing new sales. 

  • Ignored advisor warnings and missed Advisory Board meetings. 

The result?

  • Cash reserves dried up.

  • Loan repayments hit while customers were still dragging their heels.

  • They were left scrambling to cover debt with working capital.

They weren’t bad people or bad operators — just overwhelmed, buried their head in the sand, and reacting too late.

Rhythm, Visibility, and Advice

Business 2 looked the same from the outside — strong growth, good people, busy team. But behind the scenes they treated cash differently, like a strategy. Here’s what they did right:

  • Tracked cash flow weekly — with a forecast updated every Friday. 

  • Used Spotlight reporting — produced monthly by their accountant. 

  • Matched asset purchases with debt — no big capex from day-to-day cash. 

  • Followed up debtors weekly — and knew who owed what. 

  • Set aside GST and tax monthly — like a non-negotiable bill. 

  • Had an Advisory Board — and made time to listen to advice. 

The result?

  • They made bold decisions with confidence. 

  • They slept better at night. 

  • They stayed in control of the business — not the other way around. 

Where Are They Both Now?

THE LESSON:
Cash Flow Is Not Just A Finance Function

It’s a leadership responsibility. The biggest difference wasn’t luck. It wasn’t industry. It wasn’t the accounting software. It was discipline:

  • Forecasting. 

  • Making cash visible. 

  • Planning purchases. 

  • Taking advice. 

  • Following through. 

Cash flow doesn’t manage itself:

  • You need a rhythm. 

  • You need structure. 

  • You need the right lens to see what’s coming.  

Final Thoughts

If you’re leading a business and growth is starting to feel risky, not rewarding — you’re not alone. 

This story plays out again and again across NZ SMBs. The businesses that survive are the ones who take cash flow seriously, long before the pressure shows up. 

If that’s a conversation worth having in your business — I’d be happy to help! 

Want to know more about how I have spent 15+ years supporting SME owners scaling from $2M to $5M to $10M+, then check out www.planaconsulting.co.nz or contact me on john@planaconsulting.co.nz

About PlanA Consulting

PlanA Consulting has worked with business owners for 15+ years,
helping their companies become more effective and profitable.

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