Losing a major client is one of the sharpest shocks a small business can face. I’ve guided many owners through this exact moment, and the first 60 days are critical: act too slowly and you risk cashflow strain that affects payroll, supplier relationships and your ability to win new work. Act decisively and you can stabilise cashflow and, often, emerge stronger and more resilient.
Immediate assessment (first 48 hours)
When I advise a client after a loss, I start with a quick, ruthless appraisal. You need clarity before action. Spend the first 48 hours doing this:
Identify the exact revenue lost per month and the contract end date or notice period.Run a cash balance check: current bank balance, cleared funds, upcoming receipts in the next 30 days.List committed outflows for the next 60 days: payroll, rent, loan repayments, supplier payments, taxes, subscriptions.Segment fixed vs variable costs. Highlight unavoidable payments (payroll, tax) and discretionary ones (marketing campaigns, non-essential subscriptions).This gives you a simple cash runway: cash on hand divided by average monthly net outflows. If that runway is under 60 days, follow the accelerated actions below.
Immediate cash-preservation actions (days 1–7)
These are the things I tell clients to do in the first week. They’re practical and fast.
Pause or cut discretionary spending: freeze hiring, suspend non-critical software licences, postpone marketing spend that can be delayed without harming core lead generation.Renegotiate supplier terms: ring suppliers and ask for extended payment terms. Most suppliers prefer communication and a revised schedule to late payments.Defer VAT and some PAYE liabilities where eligible: check HMRC guidance — in some cases you can arrange time to pay. Don’t ignore HMRC, call early to agree a Time to Pay arrangement.Consider payroll options: can some staff move to reduced hours, furlough alternatives, or temporary unpaid leave? Use this only as a last resort and communicate clearly — this is about keeping the business afloat.Accelerate inflows (days 1–21)
Your priority should be to bring cash in quickly. I focus on three channels: invoices, alternative revenue, and collections.
Invoice fast: issue any unbilled work immediately. Use clear payment terms and offer discounts for early settlement where it makes sense (e.g. 1–2% for 7–14 day payment).Chase receivables aggressively: set a daily routine to call overdue clients. A friendly email is fine for small sums; for larger balances, pick up the phone. Use a script: recap the invoice, request payment date, offer payment plan if required.Offer short-term packages or retainers: convert longer-term services into a short, guaranteed paid package (e.g. 4-week emergency support package) that can be sold quickly to existing contacts.Tap alternative revenue sources: cross-sell to existing clients, sell a training session or workshop, or license templates and guides you already have (low marginal cost).Use recurring payments: set up GoCardless or direct debit for customers who can be moved to a subscription. I’ve seen moving 10 clients to GoCardless reduce the admin and speed up cash in one month.Short-term finance options to bridge the gap (days 3–14)
If your runway is tight, consider a bridging finance option. I always weigh cost vs. benefit and prefer options that don’t create long-term pain.
Business overdraft or short-term bank loan: speak to your relationship manager. Banks can be pragmatic if you have a credible plan.Invoice financing / factoring: particularly useful if you have large unpaid invoices and need cash immediately. Compare fees — platforms such as MarketInvoice or Iwoca are commonly used in the UK.Credit cards for short-term purchases: only for planned short-term needs and with a clear repayment plan.Director’s loan: injecting personal funds is an option, but set terms for repayment and tax implications.Rebuild revenue pipeline (days 7–60)
Stabilise now, rebuild immediately. I recommend a structured 8-week sales push that focuses on low-hanging fruit.
Reconnect with warm leads: prioritise prospects who engaged in the last 6–12 months. Personal outreach beats cold email.Ask for referrals: reach out to satisfied clients and ask for introductions — offer a small referral incentive if appropriate.Run a time-limited offer: a 60-day discount or a bundled service can convert fence-sitters quickly. Keep offers narrow and measurable.Partner up: collaborate with complementary businesses (marketing agencies, HR advisers) for joint offers — you can tap their client base fast.Protect margins and pricing (days 14–45)
In the rush to replace lost revenue it’s tempting to slash prices. I advise against blanket discounts. Instead:
Improve service packaging: create fixed-fee packages with clear deliverables and boundaries. This reduces scope creep and improves cash predictability.Adjust pricing for speed: offer an express service at a premium for customers who need immediate help.Review your cost of delivery: can you outsource lower-value tasks, automate with Zapier, or use cheaper tools like FreeAgent or Xero integrations to reduce time spent?Systems and processes to prevent recurrence (days 21–60)
Once you’ve stabilised, focus on resilience so losing a client in future doesn’t create the same near-crisis.
Diversify client base: aim for no single client to represent more than 15–20% of turnover. Set this as a KPI and monitor it monthly.Improve payment terms: move new clients to shorter payment cycles or upfront deposits. For example, take 30–50% upfront for new projects.Automate cashflow forecasting: use a simple spreadsheet or software (Float integrates well with Xero and QuickBooks) to project cash daily and flag shortfalls in advance.Create an emergency cash reserve policy: target an operational buffer equal to 2–3 months’ core costs.60-day checklist (timeline)
| Days | Critical actions |
| 1–2 | Assess cash runway, list outflows, identify fixed vs variable costs |
| 1–7 | Pause discretionary spend, renegotiate suppliers, issue outstanding invoices |
| 3–14 | Explore short-term finance, chase receivables, offer early-payment discounts |
| 7–30 | Launch short-term sales push, reconnect with warm leads, offer time-limited packages |
| 14–45 | Protect margins, introduce fixed-price packages, automate routine tasks |
| 21–60 | Implement forecasting tools, set diversification KPI, build emergency reserve |
Practical tools and templates I use
For clients I recommend practical, low-cost tools that make a real difference:
Xero or QuickBooks for fast invoicing and payment reminders.GoCardless for recurring payments and reduced friction on direct debits.Float or a simple 13-week cashflow spreadsheet for daily forecasting.Stripe or SumUp for quick card payments if you need immediate point-of-sale receipts.If you want, I can share a 13-week cashflow template and a supplier negotiation email script I use with clients. Those two items alone often buy weeks of breathing room and help turn a panic into a plan.
