As a woman entrepreneur, you’re juggling a lot—building a business, managing clients, balancing your personal life, and staying on top of your finances. Often, the financial side of running a business can feel overwhelming, especially when we aren’t sure where to start or how to keep track of everything.
But here’s the truth: mastering your business finances is the key to unlocking growth, stability, and ultimately, freedom. When you take control of your money, you empower yourself to make confident, informed decisions that propel your business forward.
If you want to listen to this blog in a podcast format, here is the link, https://www.buzzsprout.com/2143456/episodes/15868887
Outside my photography studio in Menomonie, Wi, where I teach women entrepreneurs how to grow a successful and sustainable business.
In this blog post, I’ll walk you through practical strategies to take charge of your business finances, so you can feel empowered, confident, and ready to take your business to the next level.
1. Gain Clarity on Your Numbers
The first step to mastering your business finances is understanding them. You can’t make informed decisions without knowing where your money is going and where it’s coming from.
Tips to gain clarity:
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Track all income and expenses: Use accounting software, apps, or a simple spreadsheet to monitor every dollar that flows in and out of your business.
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Review regularly: Set aside time each week or month to review your financials. This helps you spot trends, identify overspending, and stay on top of your cash flow.
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Know your key financial metrics: Focus on important metrics like net profit, gross margin, and cash flow, as these are critical indicators of your business’s financial health.
2. Create and Stick to a Business Budget or your Financial Mission Plan
A budget isn’t about restriction; it’s about freedom. A well-planned budget gives you control and helps ensure that every dollar you earn is working towards growing your business. Also, your budget is your Financial Mission Plan, and in this plan, you include goal setting, both short-term and long-term, your budget aka your numbers part, and your entire plan for paying down debt and building your savings. This can be for biz and also for your personal finances as well.
Steps to create a budget:
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List all recurring expenses: This includes rent, utilities, software subscriptions, and any other regular costs your business incurs.
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Plan for variable costs: Include things like marketing expenses, travel, and seasonal fluctuations that can impact your cash flow. Plan for the slow seasons!
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Prioritize investments: Budget for business growth—set aside money for marketing, new hires, or product development that will take your business to the next level.
3. Pay Yourself First
Many women entrepreneurs make the mistake of reinvesting all of their earnings back into their business without paying themselves. While reinvesting is important, it’s essential to treat yourself like an employee and ensure you are compensated for all your hard work.
Why pay yourself first?:
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Prevent burnout: Paying yourself helps avoid the resentment and burnout that can come from working hard without financial reward. I’ve done burnout before and I am NOT willing to do it again. I also don’t want you to come face to face with burnout.
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Build personal financial security: You need to prioritize your financial well-being, just as you would for any other employee or contractor.
Create a system where a portion of your profits is allocated to you, even if it’s a modest amount at first. As your business grows, your pay can increase accordingly.
4. Separate Business and Personal Finances
Mixing business and personal finances is a recipe for confusion and disaster, especially during tax season or when you’re trying to analyze your business’s financial health. Keep your finances separate!
How to keep finances separate:
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Open a business bank account: Keep all business transactions separate from personal spending.
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Use business credit cards: This can help you track business-related expenses more easily and build your business credit. If you’ve struggled with or are currently struggling with credit card debt, don’t use one, use a debit card instead.
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Set up an emergency fund: Just like in your personal life, your business needs a financial cushion for unexpected expenses or slow seasons.
5. Plan for Taxes and Save for the Future
One common mistake entrepreneurs make is not setting aside enough money for taxes or future investments. Don’t let a surprise tax bill derail your business!
Tax tips:
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Set aside a portion of your income for taxes: Estimate your tax rate and save that percentage of your income so you’re ready when tax season rolls around. I like to save 30% of my revenue in my tax account.
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Work with a professional: A tax professional can help you understand deductions, manage payroll, and ensure you aren’t overpaying or underpaying.
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Plan for the future: Start saving for future investments like upgrading equipment, hiring staff, or expanding your offerings.
6. Invest in Financial Education
Financial literacy is key to growing your business. The more you understand about managing money, the more empowered you’ll feel to make smart decisions for your business.
Ways to improve financial literacy:
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Take online courses: There are plenty of free and affordable online courses on budgeting, cash flow, and financial management for entrepreneurs.
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Read financial books: Stay up to date on financial best practices by reading books from industry experts.
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Hire a coach: A financial business coach, like ME!, can provide personalized strategies, accountability, and expert advice to help you master your finances. Head to www.Jesswayecoaching.com for my information on my 1:1 financial business coaching program.
7. Celebrate Your Wins
Lastly, don’t forget to celebrate your financial milestones! Whether you hit a savings goal, increased your revenue, or finally felt comfortable paying yourself regularly, each financial achievement deserves to be recognized.
Why celebrate:
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Motivation: Celebrating your wins keeps you motivated to continue growing and improving your business.
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Reinforce good habits: Recognizing progress helps reinforce the financial habits that contribute to your success.
Final Thoughts
Mastering your business finances isn’t just about numbers—it’s about empowering yourself to make confident decisions, grow your business, and live the life you’ve dreamed of. By taking control of your money, you’re setting yourself up for long-term success and freedom.
If you’re ready to dive deeper into managing your business finances and want personalized support, let’s connect. My coaching program is designed to empower women entrepreneurs like you to thrive both financially and personally. Let’s take your business to the next level, together!
xoxo
Jess Wayne
