As of mid-2025, small businesses are facing a mix of persistent and emerging challenges. Based on current trends, surveys, and expert analyses, here are my top three critical issues small businesses are most concerned about today:

1. Cost Pressures and Cash Flow Uncertainty
2. Adapting to Rapid Tech and Market Changes
3. Talent Shortages and Workforce Retention

Today I am focusing on CASH FLOW. With cost pressures and cash flow uncertainty: what’s squeezing you and what to do about it.

“We were always focused on our profit and loss statement. But cash flow was not a regularly discussed topic. It was as if we were driving along, watching only the speedometer, when in fact we were running out of gas.” Michael Dell

David Paul Carter, The Clarity Guy™

What's On Deck

• Cash Flow Squeeze? Here's How To Take Control.

• Market Pulse Spotlight

• Your One Phrase Strategy

• Recommended Resources

• Closing Thoughts

Cash Flow Squeeze? Here’s How To Take Control.

Cash Flow Clarity in a Time of Pressure

Let’s not sugarcoat it. If you run a business today, you’re likely feeling the squeeze—from all sides.

Operating costs are up. Margins are under pressure. Cash flow feels like a daily juggling act. And while headlines claim inflation is “cooling,” your monthly bills might tell a very different story.

In today’s business environment, uncertainty is the new constant. And cash flow—the lifeblood of any business—is a top priority talked-about metric. It’s not just about survival. It’s about regaining control.

What’s Really Behind the Squeeze?

Several forces are converging:

• Sticky inflation: Prices for supplies, rent, insurance, and services remain elevated. Many vendors raised rates during the supply chain chaos—and never lowered them again.

• Labor costs: Hiring and keeping people costs more. Wages are up, benefits demand more investment, and finding the “right fit” often takes longer.

• Tighter capital: Banks and lenders have pulled back. Lines of credit are harder to secure, and interest payments eat more of your cash.

• Slower customer payments: Clients are stretching payment terms, especially in B2B. A 30-day invoice is now paid in 45—or 60.

The result? Decisions become more reactive. And your tolerance for risk gets tested daily.

Cash Flow Is a Strategy—Not Just a Report

Too often, businesses treat cash flow like a rear-view mirror: “We’ll check the numbers at month-end and see where we stand.”

That’s backward. Cash is your oxygen, you can’t afford to wait and see whether you can breathe.

You need to lead with cash clarity—which means understanding your inflows, outflows, and risks in real time. And more importantly, you need to design your business model around sustainable cash flow, not just revenue.

Five Smart Moves to Regain Cash Control

Here are some smart moves to consider:

1. Get granular on your cost structure
2. Tighten up your pricing strategy
3. Rethink payment terms
4. Forecast cash weekly, not monthly
5. Improve your “Revenue per X”

If you’re reading this, you’ve made it through some tough times already. This moment might be uncomfortable—but it’s also a turning point.

Get clear on your cash. Lead with courage. Focus your strategy around what creates real value and steady flow. And remember: control isn’t about predicting the future—it’s about building a business that can thrive in any version of it.

CLICK HERE for smart moves discussion and actions to take →

Market Pulse Spotlight

The Overworked American. The 4-Day Workweek: Point/Counterpoint.

The world’s largest four-day workweek trial conducted by 4 Day Week Global resulted in most companies making the policy permanent. Research shows that a four-day workweek can lead to improved employee well-being while maintaining productivity levels, often following the "100-80-100" model where workers receive 100% of their pay for 80% of the time while maintaining 100% productivity.

Not every business can easily shift to this model. Customer service industries face particular challenges maintaining coverage with fewer workdays.

Financial concerns also arise. While some models maintain 40 hours over four days, others reduce total hours. The latter can create worries about: Decreased total output, Reduced customer availability, Increased hiring needs to cover gaps.

Question: What is your view point?

Exclusive Offer

Is Your One Phrase Strategy Current?
Book a 30-minute Strategy Clarity Session with me—free for Carter Reports subscribers this month.
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Recommended Resources

Free Start-Stop-Keep Planning Survey
I have found that a very simple, pragmatic and impactful tool can help you and your leadership team frame planning discussions.  This tool is the Start-Stop-Keep Survey developed by the Gazelles organization. Download Your Free Survey (instructions included).

Free Rockefeller Habits Checklist.
This Checklist provides the ten most important functions of everyday business that should be on automatic pilot in order for your business to run predictably and consistently. Download Your Free Checklist

Closing Thoughts

Let’s face it—there’s a lot outside our control right now. But what is within your control is how you lead through it.

Cash clarity isn’t just a finance function. It’s a leadership mindset. When you know what’s coming in, what’s going out, and where your pressure points are, you stop reacting—and start leading with intention.

You don’t need to have it all figured out. But you do need to get visible. Talk about cash flow as a team. Revisit your assumptions.

Lead boldly. Lead clearly. You’ve got this.

Let’s Grow Together
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All the best-