5 Financial Planning tips for Small Business Owners
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5 Financial Planning tips for Small Business Owners

Smart financial decisions make your small business go round. The cash entering and leaving your business is vital for its growth and survival, so it’s important to be informed, prepared, and flexible.

Here are 5 financial planning tips every business owner needs to know!

  1. Pay yourself fairly

The success of your business largely depends on your dedication and motivation, and that’s quite difficult if you’ve got financial problems. You want to earn enough money to live comfortably, but not take too much away from your business.

Pay yourself out of your profits, not your takings, and don’t undervalue or overvalue your contribution. Your accountant or accounting software will be able to help you decide on an appropriate percentage.

  1. Focus on liquid cash as well as physical assets

Owning property and equipment is obviously valuable, but businesses that appear relatively wealthy on paper can still struggle without enough cash. Did you know that 90% of businesses that fail close down because of a lack of cash flow?

Some cash needs to be accessible. If most of it’s tied up in physical items, an unexpected bill could make it hard for you to afford even the essentials – not a good position for a small business owner to be in!

  1. Don’t forget about your retirement!

You’re in your prime now and running a successful business, but there’ll probably come a point when you’d rather spend your time drinking mojitos around a quiet pool. Or maybe that’s just me!

According to pension provider Hargreaves Lansdown, just 14% of self-employed business owners are saving into a pension fund. If you haven’t already set a fund up, it’s never too late to get started. The more you save, the more prepared you’ll be for whatever happens in later life.

  1. Be aware of the worst case scenario (even though it’s not very nice)

It’s not nice to focus on how your business could fail, but essential. Consider the possibilities and have plans in place to try and prevent damage.

Any business owner can find themselves running low on cash, even when they’ve done everything right. Have a rainy day fund, be mindful of what can go wrong, and underestimate rather than overestimate. You can’t predict everything, but you can be prepared.

  1. Find a small business loan that suits your business

Traditional business finance products and small business loans can be bizarrely incompatible with the dynamic of a real small business. Large monthly repayments are an intimidating prospect, making lots of business owners decide to struggle on without extra finance.

Capify’s small business loan can help you raise £3,500 to over £500,000 to grow your business. You’ll repay a small daily or weekly percentage of your takings over 6 to 12 months, whatever suits your business best. By paying back little and often, you’ll protect your business’ cash flow while still accessing valuable business finance.


Your business could raise over £500,000 in business finance with a Capify small business loan. Get a quick quote in just 60 seconds.

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