Cash Flow Fire Drill: What to Do When You're Two Payrolls from Empty

You’re two payrolls from empty.

You need immediate action.

You need a fire drill.

You need cash now.

Cash flow fire drill. Immediate action. Emergency plan. Your survival.

This guide shows you how.

Fire drill. Crisis management. Emergency response. Your solution.

Read this. Act immediately. Save your business.

Why Fire Drill Matters

Fire drill saves your business.

What happens without fire drill:

• Cash runs out
• Payroll fails
• Business closes
• Everything is lost

What happens with fire drill:

• Cash is preserved
• Payroll is covered
• Business survives
• Recovery is possible

The reality: Fire drill enables survival.

Assess Situation

Assess your situation immediately:

Calculate Runway

Calculate it:

• Use our Cash Runway Calculator
• Enter current cash and monthly burn rate
• See exactly how long cash will last

Why it matters: Runway shows time available.

Identify Critical Dates

What dates to identify:

• Next payroll date
• Critical payment dates
• Revenue collection dates
• Cash inflow dates

Why it matters: Dates show urgency.

Assess Cash Gap

What gap to assess:

• Cash needed vs. available
• Timing of needs vs. inflows
• Shortfall amount
• Time until crisis

Why it matters: Gap shows problem size.

Pro tip: Assess immediately. Calculate runway, identify critical dates, assess cash gap. Use our Cash Runway Calculator for accurate assessment.

Quick Cash Sources

Find quick cash sources:

Accelerate Collections

What to accelerate:

• Invoice collections
• Payment reminders
• Early payment incentives
• Collection calls

Why it matters: Collections bring cash faster.

Delay Payments

What to delay:

• Non-critical vendors
• Deferrable expenses
• Optional services
• Non-essential costs

Why it matters: Delays preserve cash.

Secure Credit

What credit to secure:

• Line of credit
• Business credit card
• Short-term loan
• Emergency financing

Why it matters: Credit provides buffer.

Access Reserves

What reserves to access:

• Cash reserves
• Emergency funds
• Personal savings
• Investment accounts

Why it matters: Reserves provide immediate cash.

Pro tip: Find quick cash. Accelerate collections, delay payments, secure credit, access reserves. See our cash flow safety net guide for planning.

Expense Cuts

Cut expenses aggressively:

Eliminate Non-Essential

What to eliminate:

• Non-critical subscriptions
• Optional services
• Unnecessary expenses
• Nice-to-have items

Why it matters: Elimination saves cash.

Defer Non-Critical

What to defer:

• Non-urgent projects
• Deferrable maintenance
• Optional upgrades
• Non-essential purchases

Why it matters: Deferral preserves cash.

Reduce Overhead

What to reduce:

• Office costs
• Utilities
• Services
• Administrative expenses

Why it matters: Reduction saves cash.

Negotiate Terms

What to negotiate:

• Payment terms
• Service contracts
• Vendor agreements
• Lease terms

Why it matters: Negotiation improves cash flow.

Pro tip: Cut aggressively. Eliminate non-essential, defer non-critical, reduce overhead, negotiate terms. See our Monthly Burn Rate Calculator to track reductions.

Cash Forecasting

Forecast cash flow:

Model Scenarios

What scenarios to model:

• Best case
• Base case
• Worst case
• Different actions

Why it matters: Scenarios show outcomes.

Use Forecast Calculator

Calculate it:

• Use our Cash Flow Forecast Calculator
• Enter cash inflows and outflows
• See future cash positions

Why it matters: Forecast shows future.

Test Solutions

What solutions to test:

• Different expense cuts
• Various collection strategies
• Multiple financing options
• Combined approaches

Why it matters: Testing finds best solution.

Pro tip: Forecast cash. Model scenarios, use forecast calculator, test solutions. See our scenario planning guide for detailed modeling.

Action Plan

Create action plan:

Immediate Actions (Today)

What to do today:

• Calculate runway
• Identify quick cash sources
• Cut non-essential expenses
• Accelerate collections

Why it matters: Immediate actions buy time.

Short-Term Actions (This Week)

What to do this week:

• Secure credit if needed
• Negotiate payment terms
• Defer non-critical expenses
• Monitor cash daily

Why it matters: Short-term actions extend runway.

Medium-Term Actions (This Month)

What to do this month:

• Implement expense reductions
• Improve collection processes
• Build cash reserves
• Review business model

Why it matters: Medium-term actions prevent recurrence.

Pro tip: Create plan. Immediate actions, short-term actions, medium-term actions. See our Cash Runway Calculator to track progress.

Your Next Steps

Act immediately. Find cash. Cut expenses.

This Week:

1. Review this guide
2. Calculate runway immediately
3. Identify quick cash sources
4. Cut expenses aggressively

This Month:

1. Secure credit if needed
2. Improve collections
3. Build cash reserves
4. Prevent future crises

Going Forward:

1. Monitor cash flow regularly
2. Maintain cash reserves
3. Use forecasts proactively
4. Build safety net

Need help? Check out our Cash Runway Calculator for runway assessment, our Cash Flow Forecast Calculator for forecasting, our Monthly Burn Rate Calculator for burn rate tracking, and our cash flow safety net guide for prevention.

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