The Cash Flow Compass
Original data report from 750+ U.S. small businesses
We surveyed hundreds of businesses on the strength of their cash flow. The results show that most small businesses are heading for a cash flow crisis they never see coming—and that simple fixes can help them avoid disaster.
Ready to learn more? Download the Cash Flow Compass report to unlock all of our findings, and learn strategies to navigate any unexpected cash flow challenge.
Download the report91% of small businesses face serious cash flow challenges—and most never see them coming
- The Cash Flow Compass is powered by a survey of 760 U.S. small businesses across a variety of industries
- The results reveal that most small businesses are severely overestimating their cash flow control
- Take the Cash Flow Compass quiz to find out if you're at risk, and download the full report to chart your path forward
95% of owners check their bank balance before making key business decisions—but they're missing out on critical info
"Most business owners aren’t looking at the data… You have to know what your real cash situation is at any given time."
Mike Michalowicz
Author of Profit First,
on The Cash Flow Compass
The Cash Flow Compass reveals that 95% of business owners make major financial decisions based on their bank balance—but just 24% take the key step of organizing their cash into multiple accounts. Mike Michalowicz, author of Wall Street Journal bestseller Profit First, shares why this insight and more from the Cash Flow Compass Report should raise alarm bells for every small business owner…and what they can do about it.
Spot Cash Flow Issues
The Cash Flow Compass uncovered key drivers, business outcomes and the personal toll of cash flow issues. Here are the signs to look out for in your business:
91% have cash flow issues
The top 3 drivers are:
- Rising labor costs
- Seasonal fluctuations
- Late payments from clients
A third (31%) have missed or delayed big payments this past year
These include the owner’s salary, supplier bills and even rent.
71% say cash flow issues are taking a personal toll
66% of those point to
- Persistent stress
- Burnout
- Lack of sleep
Curious how your cash flow control stacks up? Take the Cash Flow Compass Quiz to find out if you’re a cash flow optimist or cash flow realist. Then, access the full report for tips on how to avoid the top cash flow curveballs.
Take the quiz
Owners & Experts
"When you’re in a huge [cash] crunch…it can get really emotional…Feelings of extreme discouragement and even failure, while not true, can rear their ugly head."
Are you heading towards an unexpected cash flow crisis?
Take the Cash Flow Compass Quiz to access the full report
Find out where you stand, then read the full report for tips and strategies to avoid any cash flow curveball.
Methodology
The survey was conducted in July 2024 by Research+Knowledge=Insight, an independent research company, in partnership with Relay. Cash Flow Compass surveyed 760 small and medium businesses across the US, from a wide range of sectors. All companies participating reported annual revenues of at least $240,000/year. All companies reported having at least 2 employees or contractors. The margin of error is overall, plus or minus 3.6 percentage points, 19 times out of 20.
Build confidence in your cash flow
Whether you’re running a business or managing personal finances, having a solid grasp on your cash flow can really set you up for success
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