There are some businesses out there that are living practically payroll to payroll. That’s a tough way to go at it. One little speed bump can create a significant crisis, like not being able to make payroll.

It doesn’t have to be that way.

Consider the alternative, having enough cash on hand to cover the next month. Think what a relief that can be to have that set and then be able to focus on other things during the month. Wouldn’t it be great to not have that distraction looming in the back of your mind?

So, what are some things you can do to build some buffer on the cash flow:

1. Banking. Your banking relationship might be able to provide some buffer for you. Do you have a line of credit setup? If not, that might be able to give you some cushion there? Does your company have receivables? Do you have inventory? If so, you could have the collateral that a bank could use to support giving you a line of credit. That just might be what you need to give yourself a buffer.

2. Revenues. What could you do differently with your billing practices? Perhaps, if you are a professional service firm, can you shift to a retainer model or could you shift to upfront annual licenses. If you are a software company, what can you do to build and get more revenue upfront and give yourself some cushion there?

3. Collections. How about your collection process? Are pulling in money as soon as you should be? Where are the leaks in your collection process? What can you do to tighten them up? If you could cut down your days outstanding receivables by 10 or 15 days, what would that mean for your cash?

4. Expenses. Are there certain discretionary expenses that you could delay for a while and build up a buffer?

5. Accounts payable. Are you getting turn from your suppliers? If not, who could you renegotiate with? Who might you be paying sooner than you need to?

You might have some other suggestions knowing your business, but take a look at it and see what can you do to give yourself some cushion and build a buffer so you are not having to live payroll to payroll. Give yourself that breathing room.

By the way, this can be a great one on the personal side too. When you start a month, have you got your mortgage covered, have you got your credit card payments covered, car payments covered? It can be just as much of a relief there on the personal side. If you’re burdened on the personal side, that can spill over to the work world.

So whether it’s work or whether it’s personal, give yourself some breathing room on the cash.