Small business owners wear many hats to keep their businesses running. They find customers, deliver products and services, manage cash flow, and stay out of trouble by following the law as best they can. Think of it as a three-legged stool. The goal is to maintain balance among these challenges to build a healthy business.
Many business owners dread the accounting and tax side of operations. However, with just a little time set aside each week, the paperwork can be conquered. With consistent attention, financial results often improve as well.
So how do small business owners stay financially successful? The key is developing habits that work for them. Below are several healthy habits that consistently produce strong financial results.
Set aside time each week to work on the business. Plan to make the job easier. Sit back, review, evaluate, and improve systems to achieve better results. Even one focused hour per week can make a difference. Slowing down often leads to greater efficiency.
Monitor weekly activity. Identify which activities drive success, then measure and track them each week. In a service business, client time creates sales. For product-based businesses, no product shipped means no sales. Choose three key actions that improve cash flow or profitability. More than three can become overwhelming.
Know your numbers. Focus on three key metrics: gross margin, overhead, and break-even sales. Confirm that every customer, product, and service contributes to overhead—not just sales volume. Review these monthly to prevent negative trends.
Choose customers wisely. Define the ideal client—one who values the work, can afford it, and pays well. Make it easy for them to do business. Customers shape company culture, so values should align. Grade clients regularly, keep the best, and develop a plan to improve or replace the rest.
Choose products and services wisely. Focus on what makes the most money and work to lower associated costs. Say no to work that isn’t done well.
Manage money intentionally. Pay yourself a fair wage, save for taxes, and build an emergency fund. These habits reduce stress and support better decision-making.
Invoice at the point of highest value. This may be when a customer commits or when the service is delivered. That moment offers the least resistance to collection. Never delay billing.
Review bank and credit card activity regularly. Whether online or on paper, review who payments are made to and what is being purchased. Look for unfamiliar charges or unused subscriptions.
Pay bills once or twice a month. Efficiency matters. Paying bills more often does not improve profitability.
Keep financial records up to date. History can’t be changed, but it can be learned from. Use past results to make better future decisions.
Financial health doesn’t happen overnight. Just like regular exercise and good eating habits, success improves as strong financial habits become routine.
Mary Guldan-Lindstrom, CPA