Financial Planning Strategies for Women Entrepreneurs to Build a Thriving Business 

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Consult a licensed professional for personalized guidance. The information provided is general and does not account for individual circumstances. FinFinancial LLC does not endorse specific financial strategies or outcomes.

Women are making their mark in the business world like never before. According to the 2024 Wells Fargo Impact Report, women own 39.1% of all U.S. businesses — that's over 14 million companies generating $2.7 trillion in revenue and employing 12.2 million workers.

The momentum is building. In 2023, women made up 49% of new business owners, compared to just 29% in 2019. That's a significant shift in just four years.

But there's more to the story. While women lead in business creation, they face unique obstacles when it comes to securing funding. The same report found that only 3% of women entrepreneurs received private capital investment in 2023, compared to 9% of male business owners. Traditional lenders also tend to favor male-owned businesses.

That's why having solid financial strategies is so important. Let's look at practical ways women entrepreneurs can build lasting success.

1. Establish Realistic Financial Goals

Clear financial goals are the foundation of every successful business. They give you direction and help you measure progress. Here's how to set goals that work:

Make your goals specific and measurable. Instead of "increase revenue," aim for "boost monthly sales by 15% in six months." That way, you know exactly what you're working toward.

Break down your goals into three categories:

• Short-term (3-12 months): Like improving your cash flow or building an emergency fund

• Mid-term (1-3 years): Such as expanding to a new location or launching new products

• Long-term (3+ years): Including major growth targets or possible exit strategies

Track your progress regularly. Set up monthly check-ins to review your numbers and adjust your plans. This helps you stay on track and make changes when needed.

Remember that goals can change as your business grows. What matters is having a clear target to work toward and a way to measure your progress.

2. Create and Stick to a Budget

A well-planned budget could potentially assist in making business decisions. And you'll want that clarity when managing your finances.

Here's how to build a budget that actually works:

Know Your Numbers First

Start by tracking all your income sources. This means your main business revenue, but also any consulting work or other income streams you're using to fund your business. Write down everything, even small amounts — they add up.

Map Out Your Expenses

Split your costs into two main groups:

• Fixed costs: These stay the same each month (rent, salaries, loan payments)

• Variable costs: These change based on your business activity (materials, marketing, seasonal inventory)

A really helpful tip: Look at your last three months of expenses. You'll probably find some costs you've forgotten about.

Plan for Profit

Some entrepreneurs might use the Profit First method, which involves setting aside a percentage for profit before handling other expenses.

Build in Some Flexibility

Your budget shouldn't be so tight that one unexpected expense throws everything off. Keep about 10% of your budget flexible for opportunities or surprises.

Make Regular Check-ins Easy

Set up a simple system to review your budget weekly. This could be as basic as 15 minutes every Monday morning with your favorite coffee, looking at what's coming in and going out. When you spot issues early, they're usually easier to fix.

3. Build a Cash Flow Management System

Even profitable businesses can run into trouble if they don't manage their cash well. The good news is that you can set up some straightforward practices to keep your money flowing smoothly.

Getting paid faster makes a big difference in your cash flow. Make it really easy for clients to pay you by sending invoices right after completing work. You might want to offer a 5% discount for early payments or use digital payment systems that process payments quickly. And always set clear payment terms upfront with new clients — it saves headaches down the road.

Timing matters a lot with cash flow. Take a close look at when money comes in and goes out of your business. You might need to spread out your big expenses instead of handling them all at once. Try to match payment dates with when you actually have money coming in, and keep track of which clients typically pay early or late.

Most businesses have slower periods, so planning ahead is crucial. Build a cash reserve during good months by saving 10-15% of revenue during peak seasons. You might also want to create additional income streams that work well in off-peak times. Working out payment plans with suppliers can give you more flexibility when you need it.

Technology can make managing cash flow much simpler. You don't need anything fancy — just some basic tools to set up automatic payment reminders and track receivables. Check your cash position daily through your banking app, and set alerts for when large expenses are coming up.

Looking ahead is really important too. Create a basic 3-month cash forecast and update it weekly. You'll start to see patterns in your business that can help you make better decisions about spending and saving. This kind of forward thinking can make the difference between just getting by and building a thriving business.

4. Separate Personal and Business Finances

Keeping your personal and business finances separate might seem like extra work at first, but it's crucial for your long-term success. Many business owners learn this lesson the hard way, especially during tax season or when applying for loans.

Here are the key steps to organize your finances effectively:

• Open a Business Bank Account: This helps track income and expenses clearly. When the IRS can't see the line between personal and business expenses, they'll often take a closer look at everything — and that's the kind of attention you really don't want. You could lose important tax deductions or face higher tax bills if your records aren't clear.

• Get a Business Credit Card: This helps build your business credit score and makes expense tracking automatic. Many cards offer rewards for business spending, like cash back on office supplies or travel. Keep all those receipts — they're gold when tax time comes around.

• Set a Regular Salary: Pay yourself like you would any other employee instead of taking money from the business whenever you need it. This creates a clean boundary between your business and personal finances and helps with personal budgeting.

Research different banks before opening your accounts — some offer great perks like waived fees if you maintain a certain balance, or free transfers between accounts. A bit of research here can save you money every month.

5. Save for Emergencies

Every business benefits from thoughtful financial planning, including preparing for unexpected challenges. According to a recent QuickBooks survey, 59% of small business owners reported using credit cards as emergency funding, which often come with high interest rates.

As an alternative, consider setting aside funds specifically for emergencies. While there is no one-size-fits-all approach, aiming for three to six months of operating expenses in a high-yield savings account may provide flexibility for handling unforeseen events, such as equipment failures, extended slow seasons, or unexpected opportunities requiring quick cash.

If starting with a full reserve seems challenging, small incremental steps can be a practical option. Setting aside even a modest percentage of your monthly revenue, such as 3% to 5%, can gradually accumulate into a meaningful emergency fund. Consider maintaining a separate savings account to avoid accidentally using the funds for regular expenses.

Automating transfers to your emergency fund on a schedule that aligns with your other financial obligations may simplify the process. While setting aside funds may seem difficult at first, having a dedicated reserve could provide financial security during challenging times.

6. Take Advantage of Business Loans and Credit

Smart credit management can fuel your business growth, but it requires careful planning. According to recent data, 37% of businesses sought external funding in 2023 — a 3% drop from the previous year.

And credit cards remain a popular financing choice, with 95% of small business employers using them for business purchases. But here's something to think about: 24% of small business owners don't expect to clear their credit balances without paying interest in 2024. With average APRs varying from 19.49% to 27.99% — credit card debt can get expensive fast.

Before taking on any credit, consider your business's current cash flow and growth plans. A business loan might work better for large investments like equipment or expansion, while a business credit card could help manage day-to-day expenses and earn rewards.

When looking at loans, shop around for competitive rates. Traditional banks, credit unions, and online lenders all offer different terms and requirements. Read the fine print carefully and make sure you understand all fees and repayment terms.

Create a solid repayment plan before borrowing. Factor loan payments into your monthly budget and consider setting up automatic payments to avoid missing due dates. And always keep some wiggle room in your finances — you don't want to borrow so much that you're stretched thin.

7. Invest in Your Business and Yourself

Strategic investments in your business and personal development can create long-term value. This means putting money into areas that will help your business grow and keeping your own skills sharp.

Technology investments often pay off quickly. A good customer relationship management (CRM) system can boost client retention and make your team more efficient. Marketing automation tools can help you reach more clients while spending less time on routine tasks. 

Marketing deserves attention too. Well-planned campaigns can bring in new clients and strengthen relationships with existing ones. You might want to try different approaches to see what works best for your business.

Whether adopting new technology, exploring new marketing, or upgrading your skills, strategic investments can unlock opportunities for innovation and increased profitability.

Professional development is another smart investment. Here are some ways to keep growing:

• Join professional networks like the National Association of Women Business Owners (NAWBO) for mentorship and resources

• Take targeted courses in areas like leadership or digital marketing

• Attend industry conferences to learn new strategies and build connections

• Work with a business coach to develop new skills and overcome challenges

Regular learning helps you stay ahead of industry changes and spot new opportunities. You might notice trends before your competitors or find better ways to serve your clients.

8. Plan for Taxes and Compliance

Tax season can be stressful for business owners — and you're not alone if you feel this way. According to recent research, 37% of small business owners and gig workers feel anxious and confused about filing taxes. But with some planning, you can make it much easier.

Keep in mind that business tax penalties are serious business. The IRS collected almost $6 billion in business tax penalties in 2023. Many of these came from simple filing mistakes that could have been avoided.

Here's how to stay on top of your taxes:

• Keep Clear Records: Use accounting software to track every dollar coming in and going out. Save receipts and organize them by category — this makes tax time so much simpler. You might want to scan receipts right away since paper ones can fade.

• Know Important Deadlines: Mark tax due dates on your calendar and set reminders a month ahead. Missing deadlines can cost you — the IRS charges 5% of unpaid taxes for each month your return is late, up to 25%.

• Work With a Professional: Meet with a tax advisor at least once a year. Tax laws change, and a professional can help you understand new deductions or requirements that affect your business. They can also help you plan for quarterly estimated taxes.

Make tax planning part of your regular business routine. Set aside 15 minutes each week to organize receipts and review your books. This small time investment can save you hours of stress (and maybe some money) when tax season arrives.

9. Get a Financial Advisor 

Even the most savvy women entrepreneurs can benefit from financial guidance. 

A financial advisor can clarify complex decisions, helping you craft strategies that balance your personal and business goals. 

Besides, professional advice can save you time, money, and stress, whether planning for expansion, managing cash flow, or navigating tax complexities.

How to Find the Right Advisor

Getting a financial advisor is one thing. Finding the right one is entirely different. Before you hire an advisor, ask yourself: 

• Do they have experience working with women entrepreneurs?

• What’s their approach to financial planning and problem-solving?

• How are their fees structured, and what’s included in their services?

While working with an experienced financial advisor for women entrepreneurs is essential, finding one doesn't have to be complicated. 

FINNY connects you with financial professionals who may align with what you're seeking, and could provide strategies based on your needs.

This simplifies the process, allowing you to focus on building your business. 

Financial Strategies for Women Entrepreneurs - The Bottom Line

As a woman entrepreneur, you’re not just running a business—you’re challenging norms, creating opportunities, and building something meaningful. 

But success doesn’t happen by chance. 

It’s built through thoughtful planning, resilience, and smart financial strategies that empower you to overcome challenges and seize opportunities.

That said, you don’t have to do it alone. 

Working with a financial advisor may provide valuable insights tailored to your business and personal needs, guiding you through challenges and helping you uncover new opportunities. 

With FINNY, you could potentially find an advisor who might understand the particular needs of women entrepreneurs.

Interested? You can book a demo below for more information. Booking a demo provides an opportunity to learn about FINNY’s tools. It does not constitute financial advice or an obligation to use our services.

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