Financial Planning Basics for Small Businesses
Zero-Based Budgeting, Simplified
Assign every expected dollar a job before the month begins—rent, payroll, inventory, marketing, debt, and taxes. This approach exposes waste quickly and clarifies priorities. Revisit midmonth to reallocate funds as real-world results come in.
Forecast Seasons, Not Just Months
Seasonality sinks many budgets. Tag each category with seasonal adjustments based on last year’s data and local events. Add a small contingency line. If you run promotions, budget their costs and expected lift to avoid wishful thinking.
Tools You’ll Actually Use
A clean spreadsheet or simple dashboard beats complex systems you ignore. Pick one tool, set weekly reminders, and share read-only access with your team. Want our budget template? Subscribe and we’ll send it with setup tips.
Create distinct checking, savings, and card accounts for business activity only. Connect them to your bookkeeping software and lock personal spending elsewhere. This separation prevents commingling, reduces audit risk, and makes financial reports instantly more trustworthy.
Separate Business and Personal Money
Set a realistic monthly owner’s draw that fits your budget and tax plan. Automating it reduces random withdrawals and preserves working capital. Review quarterly, adjusting gradually as profit stabilizes instead of chasing every high or low.
Separate Business and Personal Money
Debt, Funding, and Financing Choices
Use term loans for long-lived assets and lines of credit for short-term working capital. Avoid financing inventory with expensive long-term debt. Align payment schedules with the asset’s useful life to protect monthly cash flow.
Debt, Funding, and Financing Choices
Compare APR, fees, prepayment penalties, and covenants—not just the monthly payment. Calculate total cost over the full term. If terms feel rushed or unclear, pause. A slower yes beats a fast, expensive mistake every time.
Taxes Without the Panic
Set aside a percentage of profit into a dedicated tax savings account after every profitable week. Use prior-year data to estimate quarterly payments, then refine as books update. Consistent habits beat last-minute scrambles and costly penalties.
Prepare for Growth and the Unexpected
Pair a three-month operating reserve with a quick annual insurance review. Document key contacts and claim steps. When something breaks or slows, you’ll respond calmly instead of improvising. Comment to receive our emergency checklist and worksheet.
Prepare for Growth and the Unexpected
Sketch three versions of the next quarter: base, optimistic, and conservative. Define hiring, inventory, and marketing triggers for each. This clarity turns uncertainty into action and makes decisions faster when signals shift in real time.
