That sinking feeling? You’re not the only one

It’s the last week of the month. Cash flow is tight. Invoices are late. Your bank balance is lower than you thought. And suddenly, payroll is looming — and you’re not sure if you can make it.

If you’ve ever been there, you’re not alone. Almost every founder who scales fast (or bootstraps hard) hits this wall at some point. It’s not talked about much, but it’s real. And the pressure — emotional, financial, reputational — is brutal.

This isn’t about shame. This is about what to do next.

Here’s how to stay calm, think clearly, and take action when you think you can’t make payroll — even when your stomach’s in knots.

Step 1: Know your exact position, not just your fear

The first step is getting a clear, unflinching view of your actual numbers. When panic hits, it’s easy to catastrophise. But “not sure” isn’t the same as “can’t.”

Run through:

• What’s the total amount needed for payroll, including pensions and employer NICs?
  
• What’s in the bank right now?
  
• What payments are definitely coming in — and when?
  
• What could come in if you chased hard?
  
• What costs (outside payroll) can be paused this week?
  

Often, the gap feels bigger in your head than it is on paper. And even if the gap is real, knowing the size of it helps you figure out your next move.

Step 2: Prioritise communication (internally and externally)

This is a tough one, but crucial. If you’re truly at risk of missing payroll, hiding it until the last minute makes things worse — for trust, morale, and your own leadership reputation.

Depending on how close you are to the wire:

• Tell your co-founders or CFO early — they may see options you’ve missed
  
• Loop in investors or board members if they’ve backed you for this exact reason: to support you in tough times
  
• Be honest with key team members if a delay seems likely. People can handle bad news — but they resent being blindsided.
  

Keep it clear, calm, and focused on what you’re doing to fix it. You’re not asking for sympathy — you’re being transparent as a leader.

Step 3: Explore immediate options (before panic sets in)

If you’re inside the danger zone — say, 3–5 days out — these are your tactical options:

1. Chase overdue invoices (hard)
It’s not begging — it’s cash that’s owed. Frame it around timing:
“We’re finalising payroll this week — could you confirm when payment will land?”

2. Offer discounts for early payment
If cash flow is tight, offer 5–10% off outstanding invoices in return for payment today. It’s not ideal, but it’s better than missing payroll.

3. Tap your investor or director network
A short-term bridge loan from a current investor or friendly backer is surprisingly common at this stage — especially if you’re open about the plan to stabilise.

4. Use financing if absolutely necessary
Options like invoice finance, revenue-based finance or even business credit may be available. Just be careful — quick fixes can create long-term pain.

Step 4: Decide how you’ll handle the worst-case scenario

If it’s truly not possible to pay on time, your job becomes one of containment, communication, and damage control.

That means:

• Prioritising your core team and full-time employees if you can’t pay everyone
  
• Communicating with your accountant or payroll provider to manage reporting and legal compliance
  
• Having a plan and a message: “Here’s what’s happening. Here’s how we’re handling it. Here’s how we’re avoiding this next month.”
  

It’s one of the hardest founder moments there is — but handling it with maturity builds long-term respect.

Step 5: Build your runway safety net (for next time)

After the fire’s out, do the reflection work.

Ask:

• Did we know this was coming, or did we miss early signals?
  
• Are we too reliant on a handful of clients or delayed invoices?
  
• Is our cash flow forecasting process good enough?
  
• Do we need better visibility — or more support?
  

Panic is a horrible teacher, but it’s an effective one. Use the experience to strengthen how you operate, not just survive this month.

This happens more than founders admit

Payroll panic is often whispered about after the fact — over a drink or at a founder retreat. But in the moment, it feels isolating and intense.

You’re not failing. You’re leading through a storm. And how you respond now will shape your business far more than any single missed invoice or tough month.