Cash Is Tight, but You Can Still Turn Things Around

May 21, 2025

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A retailer in Bangkok was staring down a cash crunch after COVID. He was ready to sign for a loan, convinced it was his only option.

Instead, we dug into his numbers and found $30,000 in unsold inventory gathering dust and $8,000 in overpayments to suppliers. That cash was enough to stabilize his business; no debt was needed. The money was there; he just couldn’t see it.

Download The Profit Gap for free at TheProfitBootCamp.com to see 5 hidden reasons family businesses work hard but still fall short of profit.

Find hidden profit before you borrow

When cash flow gets tight, panic sets in. Your mind races, layoffs, loans, maybe even shutting down. But fear isn’t a strategy. The truth is, your business is probably sitting on hidden profit, even in tough times. You just need to find it.

Start with a zero-based budget. That means you begin each budget line at zero, not last year’s number, and build it up based on what’s actually needed. Each team member justifies every expense from scratch. No assumptions. No carryovers. Just what drives results. Look at your expenses, inventory, and contracts. What’s wasting money?

Maybe it’s unused subscriptions, overstocked supplies, or a vendor charging too much. One client found $500 a month in duplicate software licenses. Canceling them took one email and saved $6,000 a year.

Cut smart, not deep

Don’t just cut costs mindlessly; focus on waste, not muscle. Keep what drives value, like your best staff or marketing, that works. I’ve seen owners slash their top salespeople in a panic, only to tank revenue. Instead, realign spending to what moves profit.

For example, shift the budget from low-margin products to high-margin ones. One business I worked with dropped a product line that was barely breaking even. That freed up $20,000 for ads, bringing in $100,000 in new sales.

Small wins create momentum. Even saving $1,000 can shift your mindset from panic to possibility. Try this: call your top five vendors this week. Ask for a 10% discount or better payment terms. Most will say no, but some will say yes to keep your business.

A client of mine negotiated $5,000 off his annual shipping costs in one 15-minute call. That’s cash you can use to grow, not just survive.

Discipline is your secret weapon

Discipline beats loans every time. Borrowing might feel like a lifeline, but it’s a weight around your neck if you don’t fix the root problems. A logistics firm I worked with was desperate for a loan. Instead, we audited their spending and found $8,600 in waste, unused equipment leases, and overpaid utilities. That cash funded a marketing push that brought in new clients without debt. They weren’t out of options; they just needed clarity.

Here’s one last story. That same logistics firm thought they were done. But that $8,600 audit changed everything. They used the savings to relaunch ads, landing three new contracts monthly. The owner told me, “I thought we were stuck. Turns out, we just needed to look closer.” What’s hiding in your business?

You’ve now faced the five hard truths holding your business back. You know no one’s coming to save you, that delay kills profit, that family dynamics can trap you, that leadership drives results, and that you have options even in a cash crunch. Now, it’s time to act. Pick one step this week, cut an expense, fix a meeting, check your P&L, and do it. Your business depends on you.

Actions from prior episodes

Cut one cost: Block 30 minutes, review P&L, and cut one expense. Just one. Lead by example.
Find one drain: Review finances weekly, searching for one hidden loss. Act now.
Align the family: Hold a monthly, one-hour family meeting. Ask: “What will drive next month’s profit?” Prioritize profit over family tension.
Lead the team: Run focused weekly meetings with a clear agenda and one action item. Drive results.

The next action

Zero-based budgeting: Justify all expenses to free cash for growth.