Small Business, Smart Money: Financial Tips for Entrepreneurs

Running a small business is no easy task — and managing the financial side can feel like a full-time job in itself. But getting your numbers in order can mean the difference between surviving and thriving.

1. Separate Business and Personal Finances
It’s tempting to mix accounts when you’re starting out, but don’t. Open a business checking account and use it only for your company. It makes taxes easier and gives you a clearer picture of your business health.

2. Track Every Dollar
Inventory, rent, packaging, fees — small expenses add up. Use accounting software or apps like QuickBooks or Wave to track income and expenses in real-time.

3. Pay Yourself — But Wisely
You deserve to get paid, but don’t drain your business. Establish a salary or draw that reflects the company’s cash flow and leaves room for reinvestment.

4. Understand Cash Flow (Not Just Profit)
Your shop might be “profitable” on paper, but if cash isn’t flowing in when you need it, you’ll struggle. Monitor cash flow weekly and keep at least a month of operating expenses on hand.

5. Save for Taxes All Year
Self-employment taxes can sneak up fast. Set aside 25–30% of every payment you receive — and don’t wait until April to get organized.

6. Plan for Growth
Are you reinvesting in new products? Planning to hire? Expanding online? Budgeting for growth shows you’re not just surviving — you’re building something that lasts.

Small business ownership is a wild, rewarding ride. By keeping your finances in check, you give your passion the stability it needs to grow. Keep grinding — you’ve got this.