I live in Queens. Which means my mornings usually start with the sound of someone yelling at a bus, someone else yelling from the bus, and me staring at my phone wondering why my business bank balance looks… emotionally distant.
You ever open your banking app and immediately close it?
Like, not today, Satan.
Yeah. That was me for a long time.
When people talked about financial planning for small businesses, I assumed it was code for “things accountants care about” or “something you do after you’re successful.” I was wrong. Painfully wrong. Like “wearing two different shoes to school” wrong. (8th grade. Monday. Still think about it.)
This isn’t a polished guide. This is me telling you what I wish someone had told me earlier—over coffee, maybe a slightly burnt bagel, and zero judgment.
The Big Lie I Believed About Money
Here it is. Ready?
“I’ll figure it out as I go.”
Which sounds brave. Entrepreneurial. Cool, even.
It is none of those things.
It’s just stressful.
Small business financial planning isn’t about predicting the future like some Wall Street wizard. It’s about not being surprised every month. That’s it. That’s the bar. No fainting when bills show up.
So let’s talk about this step by step. Not in a textbook way. In a “real human with mild anxiety and ambition” way.
Step 1: Admit You’re Guessing (This Is the Hard Part)
Before spreadsheets or tools. Before “systems.”
You have to admit you’re guessing.
I was running my business off vibes and vibes alone.
“Feels like a good month.”
“I think we can afford that.”
“Pretty sure this client will pay soon.”
Spoiler: pretty sure is not a financial metric.
I literally said to a friend once, “I don’t need a budget, I know my numbers.”
She looked at me and said, “You don’t even know your email password.”
Fair.
So step one in financial planning for small businesses is honesty. Quiet, uncomfortable honesty.
Write this down somewhere:
- What comes in monthly (roughly)
- What goes out monthly (roughly)
- What surprises you every time (subscriptions, fees, life)
That’s it. No fancy categories yet.
Step 2: Separate Business Money From “Life Money” (PLEASE)
If you do nothing else from this post—nothing—do this.
Separate. The. Money.
I used to pay business expenses from my personal account like a raccoon grabbing shiny things. Then I’d wonder why my rent money felt… theoretical.
It’s not dramatic. It’s sanity.
Once I did this, financial planning steps actually started to make sense. Because I could see the business as its own thing. Not just a chaotic extension of my personal life and questionable late-night food orders.
Step 3: Get a Very Boring Budget (That Saves You)
I hate budgets.
Let’s just get that out there.
But here’s the plot twist: I hate financial panic more.
A budget for business budgeting for small business doesn’t need to be fancy. Mine started as a list titled:
“Stuff I Have to Pay No Matter What”
That included:
- Rent (business-related)
- Software
- Internet
- Contractors
- Taxes (ugh)
Then another list:
“Stuff That’s Nice But Not Sacred”
Marketing. Tools. Random experiments.
This alone changed my decision-making. Suddenly I wasn’t asking, “Can I afford this?”
I was asking, “Is this sacred or just shiny?”
That question has saved me real money.
Step 4: Cash Flow Is the Main Character (Not Revenue)
This one messed me up for years.
I thought revenue meant success.
Revenue lies.
Cash flow tells the truth.
I had months where sales looked great but I still felt broke. Why? Because money wasn’t landing when I needed it.
Cash flow planning is about timing. When money comes in vs. when it goes out. That’s it. That’s the whole thing.
Once I mapped that out—even roughly—I stopped being surprised by slow months. I didn’t love them. But I wasn’t shocked.
Step 5: Build a “Oh Crap” Fund (Yes, Even Now)
Call it:
- Emergency fund
- Buffer
- “Please Don’t Let This Break Me” fund
Whatever helps you emotionally connect to it.
Mine started embarrassingly small. Like, “this covers one bad week” small.
But it grew.
And the first time a client paid late and I didn’t spiral?
Game changer.
This is a core part of financial planning for small businesses that no one talks about enough. Emotional safety matters. A lot.
Step 6: Check In Weekly (Not When You’re Panicking)
I used to avoid my numbers until something felt wrong.
That’s like only going to the doctor when you’re already Googling symptoms at 2am.
Now I do a weekly check-in. Same day and same coffee. Same 15 minutes.
I look at:
- Account balances
- Upcoming expenses
- Invoices out
That’s it. No deep analysis. No judging myself.
Consistency > intensity. Every time.
Step 7: Plan Forward, Even If It’s Fuzzy
Future planning scared me because I thought it had to be accurate.
It doesn’t.
You just need direction.
I started asking:
- Where do I want this business in 6 months?
- What needs to be true financially for that to happen?
- What’s one thing I can prep now?
This is where small business financial planning becomes empowering instead of scary. You stop reacting. You start steering.
Step 8: Ask for Help (Before You’re Desperate)
I waited too long to talk to professionals because I thought it meant I was failing.
It means the opposite.
A bookkeeper helped me clean up messes I was too close to see. A CPA explained taxes without making me feel dumb (huge).
Even reading blogs from real people helped. Not corporate nonsense.
Two I genuinely enjoy:
- https://waitbutwhy.com (for perspective and humor)
- https://www.iwillteachyoutoberich.com (straight talk, no fluff)
You don’t need a full team. You just need someone outside your own head.
Things I Still Mess Up (Because I’m Human)
Let’s be honest.
I still:
- Overestimate future motivation
- Underestimate small expenses
- Occasionally say “it’ll be fine” when it absolutely will not
But now? I recover faster. And that’s the real win.
Financial planning for small businesses isn’t about perfection. It’s about resilience. The ability to mess up and not implode.
Final Not-Conclusion (Because Life Keeps Going)
If you’re running a small business and feel like everyone else has it figured out—
They don’t.
Some just panic quietly.
This step-by-step stuff? It’s not magic. It’s habits. Small ones. Boring ones. Human ones.
And slowly, you stop being afraid of your own numbers.
