How to Build a Strong Bost to Carry Your Business

A few years ago, I found myself sitting by the stunningly beautiful Sydney Harbour, watching a small wooden boat being painstakingly built by hand. The craftsman, weathered by years of experience, was meticulously shaping each plank, ensuring every joint was watertight. “A strong boat,” he explained, “isn't just about the materials. It’s about the balance, the design, and the preparation. Because once you’re out in the open water, it’s too late to fix leaks.”

That boat-building moment stuck with me—because running a business is a lot like setting sail. You’re navigating unpredictable waters, steering through calm days and storms alike. But if your “boat” (your business) isn’t built to withstand the challenges, you’ll find yourself struggling to stay afloat.  You can try to fix a boat in a storm but it is much harder and riskier to do so.

Let me tell you about Sarah, a local café owner I worked with. Sarah ran a thriving business that was the heart of her community. Her coffee? Divine. Her cakes? Legendary. And her customer service? Always warm and inviting. But behind the scenes, her “boat” had a few loose planks.

A Café in Troubled Waters

Sarah’s café was profitable, but her financial systems were a mess. She didn’t track cash flow properly, relied on outdated spreadsheets, and was months behind on reconciling her accounts. One unexpected hiccup—a supplier doubling their rates—threw her entire operation into disarray.

Her bank account dwindled, bills piled up, and for the first time, Sarah considered closing her doors. “How could this happen?” she asked me. Her business was beloved, but her systems weren’t seaworthy.

Strong Boats Start with Solid Foundations

Here’s the thing: Sarah’s story isn’t unusual. Many business owners focus on the “fun” parts—creating great products, connecting with customers—while neglecting the backbone of their business: robust financial and administrative systems.

Building a strong boat starts with ensuring you’ve got these key planks in place:

1. 
   Know Your Numbers: Do you have a clear picture of your cash flow, profit margins, and expenses? Imagine trying to sail without a map—it’s the same as running your business blind.
2. Prepare for Storms: Every business will face rough seas. Are you setting aside a financial safety net to weather unforeseen challenges?
3. Streamline Your Systems: Disorganisation can sink you. Modern tools and expert support can save you hours and eliminate costly mistakes.

The Lesson from the Café Owner

With guidance, Sarah implemented a few key changes. She invested in a bookkeeping system, set up automatic reminders for bill payments, and worked with a professional to understand her cash flow better.

When another challenge came—her coffee supplier increasing costs—Sarah was prepared. She negotiated a better deal, pivoted to a more profitable menu, and kept her café thriving.

Is Your Business Boat Ready?

Below are 9 things I recommend you do to start building that boat!

1. Separate your business and your personal finances

You can’t accurately determine what your business is making if you have business transactions mixed in with personal. So, the first thing to do is set up separate accounts. This way you are only taking from the business the costs that it incurs, this includes your salary. Yes, you should be paying yourself a salary but only what the business can afford to pay you.

The other important thing to do in separating your finances is to have a personal and business budget.

My blog post ‘5 reasons to build a brick wall between your personal & business finances’ explains in more detail why this is so important. 

1. Set up a set of business financial accounts from the beginning 

You should have a set of books and business records from the beginning and keep it accurate at all times, updating it either daily or weekly. If you are just starting out, it can be as simple as a spreadsheet but try to move to accounting software as soon as you can.

1. Set up the right bank accounts 

I always recommend having the following;

• A High-interest savings accounts – where deposit your takings or client payments
• A Business Transaction account
• A Debit card that is linked to your transaction account

If you can avoid using credit cards, then you should as it is just setting your business up for a debt it doesn’t need. Don’t mix your personal expenses with your business one and if you don’t want to pay yourself yet, then transfer lump sums into an owner’s drawings account. 

1. Set up and maintain a cash flow forecast

 A cash flow forecast is trying to model when your income and expenses are going to hit your bank account. This will look like a replica of your bank statement so that you can prepare for the future and not get caught out by an unexpected expense. 

Unfortunately, more than 40% of businesses fail in the first 3 years because they can’t manage their cash flow.

1. Monitor carefully what people owe you 

It is really tempting when you start out to treat every sale as a good sale, but this isn’t the case. Until you have received the money, a sale is a gift!

This goes back to having accurate records and ensuring that you are being paid for your services.

1. Develop multiple streams of income 

If Covid taught us anything besides toilet paper is like gold in a pandemic, it’s that life and business can change in an instant. One model of operating may not work for all circumstances so it’s important to have different means of supplying your goods and services. Whether this be in person or online, think about how you can operate no matter what!

1. Develop a cash buffer 

Unfortunately, the only way to do this is to pay income tax on the money you earn. A cash buffer is so important for when times get tough, and I would recommend working on an estimate of 3 months of expenses as your buffer. The more the better, don’t allow yourself to get caught out.

1. Gather a good crew  

There are so many people that can help you with your business, especially in the financial aspect. These are a bookkeeper, financial advisors, management accountants, etc.

Have a look at my blog post “Who sits in these 3 chairs in your business?” to help you think more about who you need.

1. Develop a routine to maintain the boat 

‘Set and forget’ is not a great way to handle your finances so it’s best to work out a way to review your accounts, expenses, customers and team at least every 3 months to ensure your boat doesn’t start to take on water.

A Challenge for You

Just like that craftsman building his boat, small, deliberate actions can make a world of difference. What’s one step you can take today to strengthen your business?

Maybe it’s scheduling time to review your cash flow. Perhaps it’s automating your invoicing. Or it could be reaching out to an expert to help you plug the gaps.

At Foundational Cashflow, we specialise in helping small businesses like yours build strong boats that carry them through the choppy waters of entrepreneurship. From cash flow management to bookkeeping, we’re here to help you create a stable foundation for growth.

Visit our services page today to see how we can support you on your journey. Let’s ensure your business not only survives but thrives, no matter what waves come your way.

What’s your next step to strengthen your business boat? Let us know in the comments—we’d love to hear your thoughts and share ideas!