The Business Owner’s Survival Kit: 10 Must-Have Money Habits

Imagine heading out for an important trip. The destination is set, the tank is full, and the excitement is high. But somewhere along the way, the GPS loses signal, the speedometer stops working, and suddenly, the gas light flickers on. Without the right tools to guide the trip, there’s no telling where—or if—you’ll arrive.

Running a business without strong financial habits is a lot like that uncertain road trip. Even businesses with great products, dedicated teams, and growing customer bases can struggle if their finances aren’t under control. The difference between a company that survives and one that thrives often comes down to a structured financial system—one that includes clear goals, a plan, and the ability to adjust when needed.

Financial literacy is more than just understanding numbers; it's about making informed decisions that drive success. According to Forbes, “Financial literacy empowers business owners to make informed decisions, strategically allocate resources, and ultimately gain a competitive edge in their industry”. Yet, many business owners overlook this critical skill, leaving them vulnerable to financial missteps.

This ten-step survival kit provides the financial tools needed to navigate business ownership with confidence.

1. Set Clear Financial Goals: Choose Your Destination

Every successful journey begins with a clear destination. In business, this means establishing specific, measurable, achievable, relevant, and time-bound (SMART) financial goals. Without financial goals, business owners react to challenges rather than plan for success. 

Maybe your plan is to launch a landscaping business so you can leave your current job. When you convert that goal to a SMART destination, your plan then might be "By December, my landscaping company will generate sales of $25,000 each month and spend $15,000 monthly. Once the company reaches a net income of $10,000 consistently for three months, I can leave my job and run my business full time."

With this clearly defined goal, you will know exactly when you have achieved what you set out to do.

2. Create a Financial Plan: Know the Route

A financial plan serves as a map, outlining where a business is headed and how to get there. Without a structured plan, it’s easy to veer off course. A strong financial plan includes projected income, expenses, savings, and reinvestment strategies.

Start by building a budget. It's OK if it is simple. Just start with something. Include a sales target (monthly is best) with estimated expenses. Calculate your net profit. Get the numbers on the board. Not only does this give you a clear target, but it also can help you manifest your success because you took the time to write it down!

According to research by ProfitTree, businesses with written financial plans grow 30% faster than those without one. A well-structured financial plan not only drives growth but also helps business owners navigate slow seasons, manage unexpected costs, and seize investment opportunities.

3. Prioritize Cash Flow Management: Keep the Tank Full

A business can generate revenue but still run out of money if cash flow isn’t properly managed. When expenses outweigh available funds, financial trouble is unavoidable - you can miss payroll, slow pay vendors and lack capital to take advantage of great market opportunities. Your business stalls.

To maintain steady cash flow, businesses should:

• Maintain an 8 week cashflow forecast
• Secure access to a line of credit
• Stay on top of the clients who are slow to pay

Proper cash flow management ensures day-to-day operations continue smoothly. The Small Business Administration offers helpful tips for managing your finances and explains the basics of accounting.

4. Use Financial Tools: The Business Dashboard

Every vehicle has a dashboard that tracks speed, fuel levels, and system warnings. Businesses need a financial dashboard to monitor financial health in real time.

Some key metrics to track include:

• Gross Profit: Measures the difference between the cost of the item you sold and how much it costs you to acquire or manufacture it. 
• Net Income: Tracks total earnings after expenses. 
• Quick Ratio: Measures the relationship between your cash plus accounts receivable versus your accounts payable plus other short term debt like credit cards. Target at least 1.25 and improve this over time. Banks use this ratio to determine if they will lend to you. 
• Net Profit and Gross Profit Margins: Both are measured as a percentage of sales. Net margin is simply net profit divided by sales and gross margin is gross profit divided by sales. A strong business is not necessarily about having great sales… its about keeping a strong percentage of the sales after you pay your expenses.

Financial tracking tools like QuickBooks or Xero can help business owners collect their business’s financial activity and build these metrics. If you need help, MoneyFit’s financial services provide customized financial tracking solutions for businesses.

5. Build an Emergency Fund: Roadside Assistance

Even the most well-planned trips run into unexpected detours. Businesses need emergency funds to handle surprises without disrupting operations.

Experts recommend setting aside three to six months’ worth of operating expenses in an accessible account. This buffer provides security when cash flow is tight, equipment breaks down, or unexpected expenses arise.

Every business owner needs a great banker, a reliable financial advisor, and a plan to ensure their company can weather financial bumps in the road. A strong banking relationship can help you access lines of credit or business savings accounts designed to keep you prepared for the unexpected.

6. Work with Financial Experts: A Trusted Guide

Even experienced drivers use GPS when navigating unfamiliar territory. No matter the size of your organization, taking time to build your own board of directors. The experienced professionals can help guide you out of the woods.

Consider recruiting a board that includes:

• Accountant - to support daily operations
• Tax Preparer
• Lawyer
• Human Resources Professional
• Banker
• Marketing Expert

7. Keep Learning: Adjusting the Route as Needed

The landscape is always changing. Staying informed helps business owners make better decisions. Regulatory updates, market trends, and business strategies evolve, and ongoing education ensures financial plans remain relevant.

Drivers watch the horizon and road signs - not just the dashboard. As an owner, you need to know your company's space in the marketplace as external factors shift. You have to watch the horizon.

Some ways to stay informed:

• Attend small business finance workshops.
• Connect with your industry by joining an association or attending industry conferences.
• Connect with your community through professional groups or mentoring.
• Connect with the economy by reading a periodical like the Wall Street Journal or listening to podcasts.

If you need help understanding financial basics, try taking a class at a local community college. Alternatively, the National Financial Educators Council provides resources to help improve financial literacy as well. There are many different ways to stay up to date on what’s happening and improve your financial literacy to the best of your ability.

8. Track Financial Progress: Monitor the Dashboard

A dashboard helps drivers track their progress, and financial metrics help business owners do the same. 

If a car dashboard measures speed, fuel levels and engine RPM, what factors are most important to your company's health? Not every company uses the same metrics. It's OK to listen to your gut on this one.  Is it the number of new customers each month?  Gross profit margin? Cash on deposit? Pick what matters and track it.

To learn more about choosing a great KPI for your company, read “Good to Great” by Jim Collins. 

9. Stay Disciplined: The Long Road to Success

Financial success isn’t built overnight. Businesses that survive and grow develop consistent habits that keep them financially strong. This includes:

• Avoid impulsive financial decisions - follow your plan.
• Keep your product and service offering simple. Be excellent at fewer things.
• Be willing to adjust the plan if the data indicates it is necessary. 

Long-term success comes from making steady, intentional financial decisions.

10. Reinvest in Growth: The Next Destination

Profitable business owners reinvest profits back into the company to fuel growth. Strategic reinvestment can move a business from running on 4 cylinders to a turbo V6. 

Some reinvestment strategies include:

• Upgrading technology and equipment for better efficiency.
• Expanding marketing efforts to attract more customers.
• Investing in employee development and training.

Financial Habits: The Quiet Superpower of Business Success

Successful business owners don’t rely on luck—they establish strong financial habits that guide their decisions. By following this ten-step financial survival kit, businesses can create stability, adapt to challenges, and position themselves for long-term growth.

Successful businesses follow a system that keeps them financially prepared—just like a well-planned road trip.

• Fuel = Cash Flow – Without fuel, the journey stops. Cash ensures daily operations continue smoothly.
• Road Map = Financial Plan/Budget – A clear plan guides decisions and prevents costly detours.
• GPS or Dashboard = Financial Tracking – Just as a dashboard tracks speed and fuel, financial reports help businesses stay on course.

Entrepreneurship is thrilling and can also be a bit scary. If you would like a road buddy, there are professionals available to help. MoneyFit provides financial expertise and resources to help business owners develop and maintain financial success. A strong financial foundation isn’t just about making money—it’s about making the right choices with money. Contact MoneyFit today to make sure you’re on the right road for your business journey.