Learn Top 5 Financial Management Strategies for a Successful Business

 

I’ve been in the small business world for a long time—first as a financial advisor, then as a Financial Accountability Coach™, and always as an entrepreneur myself. And if there’s one thing I’ve learned, it’s this: starting a business is exciting, but keeping it profitable and to keep enjoying it is a whole different challenge.

I’ve worked with so many solopreneurs with awesome business ideas. Most if not all of them are passionate, hardworking, and great at what they do… yet struggling behind the scenes when it comes to money. If that’s you, know this—you’re not alone, and you CAN fix it.

Here are the five biggest money struggles I see solopreneurs face (and how to turn things around):

1. Not Paying Yourself a Salary

I can’t tell you how many times I’ve heard: “I’ll pay myself once the business makes more money.”

But here’s the truth: If you don’t start paying yourself now, you probably never will.

I’ve seen solopreneurs work 60+ hours a week and take home $0 because “the business needs the money.” But if you don’t pay yourself, your business isn’t really working—it’s just a stressful hobby.

How to start to fix it: Start small. Even if it’s just $100 a week at first, build the habit of paying yourself. A good rule of thumb? Set aside a percentage of revenue for YOU—even if it’s 10-30%. You deserve to get paid.

2. No Tangible Profits (Despite Good Revenue)

I once worked with a solopreneur who made $10K a month… yet had $300 in her business account.

How? Expenses were eating up everything. This is one of the biggest financial mistakes I see—people focus on revenue instead of profit.

How to start to Fix it: Track your numbers. It’s all about cashflow here. Profits are great, yet it’s all about cash flow. Separate personal and business finances and review your expenses. Are you spending on things that actually bring in revenue? Cut out anything that isn’t helping you grow.

3. No Cash Reserves or Emergency Fund

I had a client who was doing great… until one of their biggest customers disappeared overnight. No warning, no payment, nothing. It nearly shut them down.

This is why cash reserves and emergency funds matter. If you don’t have savings, one bad month can wipe you out.

How to start to Fix it: Start setting aside a small percentage of each sale into a savings account. Aim for 2-6 months of business expenses. It doesn’t have to be huge at first—just start!

4. Inconsistent Income and Cash Flow Struggles

Some months are great. Others? You’re wondering how to keep the lights on. Feast-or-famine cycles are brutal, and they make long-term planning nearly impossible.

If you’re a solopreneur, you’ve probably lived through the “feast-or-famine” cycle—some months are booming, and others make you question all your life choices.

One of the best ways to smooth out your income? A Hills & Valleys account.

A Hills & Valleys account is a separate savings account designed to catch extra income during “hill” months (when you’re making good money) so you can pull from it during the “valley” months (when things slow down).

How to start to Fix it:

• Open a separate bank account just for this purpose.
• During big months, set aside a percentage of your income (e.g., 10-30%).
• When business slows down, pull from this account to keep cashflow steady.

This method helps create predictable income—so you’re not stressing every time there’s a slow period.

Finding ways of recurring revenue also helps smooth out the highs and lows, so you’re not constantly in survival mode.

5. Doing Everything Alone (and Burning Out)

I used to think outsourcing was a luxury. But the truth is—doing everything yourself is what’s REALLY expensive.

You have an idea of your strengths and weaknesses, you have an idea of your key tasks as a small business owner. Oh! You don’t!! 

I’ve seen solopreneurs get stuck in admin work, emails, invoicing, and social media instead of actually growing their business. And burnout? That’s a real business killer.

How to start to Fix it:

Start small. What’s the one thing you can automate or delegate? Maybe it’s:

• Using a bookkeeping tool instead of tracking expenses manually
• Hiring a VA for 5 hours a week to handle emails
• Automating scheduling instead of going back-and-forth with clients

The goal? Free up your time so you can focus on making money!

Final Thoughts: Build a business that works for you.

If you see yourself in any of these struggles, don’t panic—I’ve been there too, and so have most solopreneurs. The key is to make small, intentional changes that put you in control of your money instead of feeling like you’re constantly playing catch-up. Making these shifts will change everything.

There are a lot of things that we haven't mentioned in running a small business that you may need help with, we have small business coaches that can help you keep the dream alive and thrive. So, get matched up with your perfect coach through Accountable’s Coach Match process!

 

 

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About the Author

Connor Tyson (Owner/ Founder of Progress Solutions)

Hi, I’m Connor, I wrote this blog based upon 24 years of being a financial advisor, during which I have had the privilege of guiding hundreds of individuals and families as they embarked on their financial planning journeys. 

My goal is to help people going through life transitions who feel they aren't where they should be in their personal finances, feel unsure or uneasy about their current situation get unstuck from their current situation by providing a simple and proven path forward, so they can move forward with confidence and change the trajectory of their financial futures and that of their families.

• BS degree - Finance, from Quinnipiac University, 1999
• Financial Advisor for over 20 years, Series 65, Registered Investment Advisor
• ChFC ® designation - Chartered Financial Consultant