Jul 12, 2021
A few months ago, I had the opportunity to make a guest
appearance on the leadership series of my friend Tim Croll’s B2B
Made Simple podcast. In that episode, we discussed 10 ways in which
numbers can provide clarity to you and your business. You’ve heard
Tim Croll on the Solopreneur Money podcast before on episode
Today we’re going to flip this solopreneur podcast around. In
this episode, you’ll hear Tim interviewing me. Listen to this
episode to learn 10 financial tips to improve your business and
you’ll hear Tim ask me about leadership and money.
You will want to hear this episode if you are interested
- A bit of my backstory [1:22]
- 10 financial tips to improve your business [9:38]
- Improving your financial outlook if you are struggling in your
- Not letting your ego get in the way of success
- Taking time to think [34:39]
10 financial tips to improve your business
- Start with vision. Before you even begin
looking at your numbers you have to have a vision. You need to have
the vision to understand where you are going with your business.
Once you have determined your vision, this will help you define
where your money is going.
- Stop commingling your business and personal
expenses. You need to have separate accounts for
business and personal expenses.
- Run an annual budget. We all hate to budget,
but it is important to understand the flow of your money. Look back
over the past 24 months and look for trends. Having a budget in
place will give you clarity and focus.
- Understand your revenues. What were your
revenues over the past 2 years? Were there spikes and dips? Once
again, look for trends.
- Pay your quarterly tax
estimates. Creating a separate tax account will
reduce the stress of paying taxes.
- Save for retirement. Not only will this
help you prepare for the future, but saving for retirement provides
you and your employees with tax-saving opportunities. Remember,
hope is not a retirement plan.
- Build an emergency savings fund for your small
business. Do you have 6-12 months' worth of savings?
This takes us back to step 3; knowing your numbers will help you
get started. Having 6-12 months of expenses in an emergency fund
will reduce stress.
- Automate your expenses. If you have your
expenses automatically deducted when possible this will reduce the
busy work that comes with paying bills.
- Seek advice. Financial advice from a CPA
or financial advisor is invaluable to solopreneurs. They can help
you avoid financial pitfalls that you may not see.
- Revisit your numbers
quarterly. Scheduling time to check in with your
budget on a quarterly basis will allow you to gain an understanding
of where you are and where you need to be.
How to improve your financial outlook if your business is
These tips are great for anyone starting out or already
succeeding in their business, but how can solopreneurs who are
struggling to make ends meet do all of these things on top of
running their business?
If you are having trouble staying afloat, there are 4 things
that you can do. The most important thing to start with is by
saving money. Even if it is only $50 per week or month, any little
bit will help. As a business owner, life can throw you into
perpetual chaos. Having a bit of savings behind you can ease your
The next thing you’ll want to do is to begin to tackle your
debt. Try taking advantage of the historically low-interest rates
to refinance debt.
Before you get to the last step you’ll want to know your costs.
What does it cost you to do your work? What is your cost per
This may come as a surprise, but the last step is to raise your
fees. This is the quickest way to raise your revenues. Study your
market to see if you can increase your rates. This is why it is so
important to know your numbers. Once you understand your cost per
unit or cost per client then you can follow the ⅓ rule. Tune in to
find out what that rule is and how it can help you improve your
Resources & People Mentioned
Connect with Tim Croll
Connect With Gabe Nelson
Subscribe to Solopreneur
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