8 financial tips for business owners
With perks like setting your own hours and being your own boss, it’s no wonder people dream of owning their own company. And those dreams are becoming reality for more and more people as the number of small businesses in the US rises. There are over 34 million small businesses in the country, and these ventures make up 99.9% of all US companies.1 What’s more, small businesses employ just under half (46%) of working Americans.2 This entrepreneurial spirit shows no signs of slowing down either, as a record-breaking 5.5 million new business applications were filed in 2023.3
But it’s not all positive for mini enterprises: Many are struggling to recover revenue and customers following the COVID-19 pandemic.4 In fact, 65% of small businesses say the pandemic had a negative effect on them.5
Starting and running a small business takes hard work. You need to market yourself and get customers, manage and employ other people, and of course stay on top of finances. Though it may seem overwhelming, there are some tips that can help you get and keep your business up and running. Here are financial hacks that may help cut down on the stress of running your own company.
1. Have a buffer in place
Many small business owners fall into the “ambitious spenders” financial profile, according to The Guardian Study of Financial and Emotional Confidence™. The majority of small businesses also take risks, experiment, and push industries forward.6 Being comfortable with risks makes sense for people who are willing to go out on their own and start a company, but too much risk can be detrimental.
Cash reserves can help you mitigate risk and more. So, while keeping up with monthly expenses is good, if you’re just keeping up and have no other cushion, that can get you into trouble. With no cash reserves, a drop in sales, or the loss of a key employee can be an unmanageable challenge for a small business. Ideally, you want to have the equivalent of your salary in cash to help you weather any negatives. Another way to think about it is to set aside enough to cover three months’ worth of expenses, and aim for six months to be more conservative.
2. Set up a cash flow system
You probably think you have a pretty good idea of how the money is flowing in and out of your company. But can you easily rattle off your profit margins? How about your inventory turnover? Hard data and key metrics can show you exactly what’s going on with your business so you can make more informed decisions.
To get started, consider setting up a system to track all income and expenses. Identify your projected expenses — what you need to spend each month on basics such as rent and utilities, equipment and supplies, telecommunications, taxes, and insurance. Determine your pricing structure and set a monthly income goal that can help generate enough positive cash flow to cover your business expenses, pay yourself, and make some profit you can save or reinvest in the business.
3. Factor in debt
About 80% of people in the US have debt, and small business owners are no exception.7 Whether it’s a mortgage or student loans, repaying these debts can negatively impact your cash flow. When preparing your business’s financials, be sure to factor in every kind of debt repayment to help you be more realistic about the cash flow you need to cover all expenses.
4. Protect your income
Illnesses and accidents happen, and they can sideline you from working for a long time. This is why you’ll want income protection. Large corporations may provide short- and long-term disability as employee benefits, but when you’re the employer it’s up to you. Consider adding disability insurance so that in the event of a sudden health emergency, you’ll be more confident knowing the income can help your business, and your personal life, stay afloat. And don’t forget about saving for retirement. Make sure you’re making proper preparations to have an income stream in retirement.
5. Prepare for the lows
Do you know your terms with your suppliers? It’s good to set up a grace period before you need it. Talk with your vendors to see whether you can extend your payment terms out by 30 days or more in a cash flow crisis. If you’ve established a good relationship with them by paying on time, they may be amenable to giving you a break when you need it.
On the other hand, you also want to be timely in collecting on your receivables. Past-due invoices are a major irritant for businesses — and a key reason why positive cash flows go negative. Make it a priority with your team to get timely payment from your customers. Track your receivables on a weekly basis and have a system to follow up quickly on past-due invoices. Consider adding a small discount to motivate customers to make early payments.
6. Embrace the highs
In times when your cash flow is stronger, look for ways to reinvest in your business. For example, employees are important assets, and when you invest in their professional development, it pays off in multiple ways. Our research shows 46% of small business owners struggle with retaining talent.8 But an engaged, high-performing staff can help drive higher customer satisfaction — which can help drive higher earnings. Or look for ways to build your confidence in areas outside your expertise. Investing in a few well-chosen professional relationships to complement your own strengths may help you identify growth potential, save money operationally, and avoid costly mistakes.
7. Get an edge as a minority-owned business
According to the Minority Business Development Agency (MBDA), there are more than 9.2 million minority-owned businesses in the US.9 Minority-owned businesses employ more than 8 million people and generate more than $1.8 trillion in annual revenues.10 But if you’re a minority-owned business, you may face particular challenges that prevent you from getting capital.
Whether as a woman business owner of color or another minority business owner, there are steps you can take to help your business. First, you can register your company as a minority-owned business (MBE). This can be helpful as certain organizations exist solely to support MBEs with a variety of resources from consulting to capital, for example, the Minority Business Development Agency (MBDA).11 You can become a certified MBE online through the National Minority Supplier Development Council (NMSDC).12
Surrounding yourself with like-minded entrepreneurs can also help you gain insights, resources, and connections that help to drive you forward. A great place to start for women business owners of color is The Professional Women of Color Network (PWOCN).13 Or consider joining an incubator or accelerator to meet fellow entrepreneurs, as well as experienced professionals who can give advice on everything from finances to product sourcing and more.
8. Ask for help
You don’t have to go it alone. Network as much as possible to help drive referrals and expand your business reach. There are also great resources out there for when you have questions or feel stuck. Check out the Small Business Development Centers in your area to find assistance and counseling for starting, running, and growing your business.14
Financial professionals like myself can also be a great resource for small business owners. Our specialized knowledge helps entrepreneurs by acting as a sounding board for your business. We can suggest additional ways to meet your goals, overcome challenges, and help build the business you’ve dreamed of owning.
Disclaimer:
1 United States Small Business Statistics, April 28, 2025
2 Small Business Data Center, U.S. Chamber of Commerce, June 6, 2025
3 Map: New Business Applications Surge Across the Country, U.S. Chamber of Commerce, February 2, 2024
4 Small Business Pulse Survey, US Census Bureau, October 6, 2022
5 ibid.
6 Liam Austin, 101 Small Business Statistics 2026 Report: Growth, Revenue & Trends, entrepreneurs HQ, November 19, 2025
7 How much debt does the average person in the US owe?, USA Facts, June, 2025
8 Guardian's 14th Annual Workplace Benefits Study, 2025
9 Who We Are, Minority Business Development Agency
10 ibid.
11 MBDA Programs, Minority Business Development Agency
12 Certification Process, National Minority Supplier Development Council
13 Professional Women of Color Network, Professional Women of Color Network
14 Small Business Development Centers, US Small Business Administration, July 26, 2023
Brought to you by The Guardian Network ©2025 The Guardian Life Insurance Company of America®, New York, NY.
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.
8614748.1 Exp. 12/27 *pre-approved content*
