1. Track & Forecast Your Cash Flow

Why It Matters

Understanding where your money is coming from and where it's going helps prevent financial surprises. Regular tracking allows you to make informed business decisions.

How to Do It:

• Use Accounting Software: Tools like Xero or QuickBooks help you track income, expenses, and trends.

• Create a Cash Flow Forecast: Predict future revenue and expenses for the next 3-6 months to avoid shortfalls.

• Review Weekly: Set aside time each week to review finances and adjust accordingly.

💡 Pro Tip: Keep a simple spreadsheet if you're not using software yet. Track all incoming payments, fixed costs, and variable expenses.

2. Establish a Payment Policy & Get Paid Faster

Why It Matters

Late payments from clients or funding bodies (like NDIS or private insurers) can create cash flow bottlenecks. Setting clear policies ensures you get paid on time.

How to Do It:

• Set Clear Payment Terms: Require upfront payment or payment within 7 days of invoicing.

• Automate Invoicing & Reminders: Use software like Cliniko, Halaxy, or Xero to send automatic reminders.

• Offer Multiple Payment Methods: Accept EFTPOS, online payments, and direct debit for convenience.

• Request Deposits for Programs: For long-term services or group programs, secure a deposit upfront.

💡 Pro Tip: If working with NDIS clients, regularly check claims to ensure payments are processed on time.

3. Control Expenses & Reduce Unnecessary Costs

Why It Matters

Managing cash flow isn’t just about earning more—it’s about spending wisely. Cutting unnecessary expenses can improve financial health.

How to Do It:

• Review Monthly Expenses: Identify and eliminate low-value expenses.

• Negotiate Better Deals: Ask landlords, suppliers, or service providers for better rates.

• Use Cost-Effective Marketing: Focus on referrals, social media, and community networking instead of paid ads.

• Buy in Bulk: Save on consumables like resistance bands and taping supplies.

💡 Pro Tip: Categorize expenses as essential (rent, wages) or non-essential (subscriptions, paid ads) to prioritize spending.

4. Diversify Revenue Streams

Why It Matters

Relying on just one type of income (e.g., only 1:1 sessions) can be risky. Expanding services increases income stability.

How to Do It:

• Offer Group Programs: Lower-cost, high-volume services improve profit margins.

• Introduce Online Services: Telehealth consultations, online coaching, or digital exercise programs.

• Partner with Businesses: Work with gyms, schools, or corporate wellness programs.

• Sell Additional Products: Branded equipment, exercise guides, or home workout kits.

💡 Pro Tip: If certain times of the day are consistently slow, introduce a lower-cost group class to fill those gaps.

5. Maintain a Cash Reserve for Emergencies

Why It Matters

Unexpected expenses (e.g., equipment repairs, slow months, or rent increases) can disrupt your business if you don’t have a financial cushion.

How to Do It:

• Set Aside a Percentage of Revenue: Aim to save 5-10% of monthly income in a separate emergency fund.

• Keep 3-6 Months of Expenses Covered: This ensures financial stability in case of unexpected challenges.

• Reinvest Strategically: Use surplus funds to grow your business rather than spending impulsively.

💡 Pro Tip: Open a separate savings account for your emergency fund to keep it untouched.

Final Thoughts

Cash flow management is the backbone of a successful exercise physiology business. By tracking finances, enforcing smart payment policies, cutting unnecessary costs, diversifying revenue, and maintaining cash reserves, you can ensure long-term financial health and growth.

💡 Action Step: Choose one of these tips to implement this week and start improving your cash flow today!