10 Top Financial Tips for Small Business Owners

Australian small businesses contribute more than half a trillion dollars to our nation’s economy. ActOn Wealth financial planners recognise that the strength of the small business sector directly reflects our country’s economic vitality. This understanding drives our commitment to supporting small business owners and entrepreneurs in their journey to success. 

In this article, we’ll share essential financial advice for small business owners—insights often overlooked amid the daily challenges of keeping a start-up afloat. While some tips may seem straightforward, their importance cannot be overstated.

We hope these business finance tips help you get ahead. 

1. Good Figures Need a Solid Business Plan

You would be surprised how many start-ups get going without a solid plan. It’s often a hurriedly-collated afterthought or gets pulled together in bits and pieces over time. This is typically a shortcut to failure. 

A business plan forms the blueprint for everything you will do, including why, how, when, and to what anticipated outcome. It provides clarity and reason when your better judgment might be clouded. 

From a finance perspective, your plan will include forecasting revenue, expenses, budget and cashflow. Get this right (and get it done in the first place), and give yourself strong foundations for success. 

2. Appoint Financial Experts to Help You  

Unless your business is finance-related, you probably can’t give all your bandwidth to numbers. Whilst this is understandable, it puts you on very shaky ground. You need to become almost forensically familiar with your business numbers. 

That’s where Melbourne financial advisers like ActOn Wealth come into the picture. We’re the numbers gurus who do the background work for you. Upon understanding your financial and lifestyle goals and desires (and a wealth of additional information we gleaned during a fact-finding meeting with you), we develop a financial strategy to complement your business plan. This could cover everything from budgeting and cashflow management to business tax, investments, insurance, emergency funds, and . 

Acton Wealth holds our own Australian Financial Services Licence, which empowers us to provide tailored advice for you, not products and services that deliver kickbacks to us. Importantly, we also work to educate our clients throughout this journey financially. Imparting our knowledge helps give you the confidence, control, and peace of mind you need to run your business. 

Indeed, getting your head around the numbers is one of the best business financing tips we can suggest. 

3. Understand Taxes 

We’ve mentioned above the importance of getting familiar with figures. Hopefully, you have ActOn Wealth on board, and our tax planning accountants can provide sound, specialist advice. However, regardless of support, it’s important as the owner to get your head around business tax generally, and the specific obligations imposed on you and your industry. You want to take advantage of all potential credits and deductions and minimise your tax liability. You also want to avoid making mistakes – the ATO will not accept human error or ignorance as a defence. 

4. Manage Debt Mindfully 

One of our key financial tips for small business owners is to exercise caution when it comes to debt. Borrowing helps build your business. However, balancing debt and growth is a fine line, and you will undoubtedly come to this crossroad at several points throughout your business’s lifespan. Prioritise paying off high-interest debts and err on the side of caution. 

5. Always Be Prepared – Protect Yourself with the Right Insurance

The Boy Scouts said it best.

Prudent planning is key to establishing strong, stable business foundations and weathering storms. One of the most pertinent business financial tips we can advise is to recognise your value. You are the most important asset in your business, so having the right insurance coverage can be a veritable safety line. But that’s not all. 

Installing scalable technology, cloud-based back-up and data defence systems, ensuring tax and legal compliance, conducting regular risk assessments, and encouraging constant learning (for you and anyone on your team) help build resilience and adaptability. 

6. Contribute to Your Superannuation

As far as small business finance tips go, this is one not to ignore.

In those early days of building a new business, neglecting voluntary superannuation payments can be particularly tempting. Don’t fall into that trap. Not only can this be an effective tax-offsetting strategy, but it also directly contributes to your retirement planning. Succession or exit planning should (and will, with ActOn Wealth) be a part of your wealth creation strategy. 

However, what if things don’t quite go to plan precisely when you want them to? Selling a business doesn’t always unfold like a well-scripted story. Having that nest egg could double as a smart safety net. 

7. Diversify Your Investments 

Getting your business to a stage where it makes money is an incredible feeling. 

Congratulations – all that incredible work (and these great business tips!) are beginning to pay off. But don’t automatically reinvest it into the business. Diversifying your investment opportunities could provide a more strategic, prudent approach. Speak to ActOn Wealth professionals about the best wealth-creation solutions for you. 

8. Keep Detailed Financial Records 

Financial records are to finance planning what data is to marketing. Without them, you’re in the dark. In other words, they are crucial for informing your business decisions, preparing tax returns and even approaching new partners or potential investors. Keeping your records in consistently good order will avoid all manner of stress, confusion, and hustle when the tax year comes to a close. 

9. Ensure Your Financial Business Goals Align With Life Goals

Working with ActOn Wealth will quickly help you identify if your business and life goals are aligned. Ultimately, they must both be singing from the same songbook. Why? Because running a business is arduous work. When you’re exhausted, when things look overwhelming, when it all feels too much, you need to know why you’re putting yourself through this. 

Invariably, your business will ultimately help drive and improve your lifestyle, and that’s the oxygen for your fire. That’s what is going to make it all so worthwhile. Yes, this article is about financial tips for small business owners, but at the end of the day, you’re also likely a partner, a parent, and someone who wants to make the most of your life. 

10. Plan for Growth 

A solid financial plan, sound market research exploring new customer segments, continually innovating processes, procedures, and technologies, scalable operational efficiencies, strategic partnerships, and savvy talent acquisition are all potential growth strategies that can keep you relevant, financially robust, and dynamic. Indeed, growth should be central to any good business plan and is one of our hottest business finance tips. 

Contact ActOn Wealth 

This should be number one on our list of financial tips for entrepreneurs! Indeed, the best tip is to connect with experts who can help you grow and thrive. Contact our team today and learn how we can deliver real value to you and your small business. 

Consider us part of your new support team. Contact ActOn Wealth financial advisers today and see how our specialists can help.