Financial Freedom Friday
Managing business finances is really about fiscal responsibility—but not in the dry, corporate sense. I’m talking about the kind that keeps your business grounded when life is unpredictable. The kind that lets you move with intention instead of reacting in panic.
I didn’t get that at first. I used to think finances were mostly about bookkeeping—something to outsource or deal with during tax time. But when I was trying to build Backbone America the first time, I found myself in survival mode more often than not. Not because I wasn’t working hard—but because I wasn’t making financially responsible decisions. I didn’t know how to. I was spending based on hope instead of data. I didn’t track margins. I underpriced. And when things got tight, I had no cushion to fall back on.
Eventually, I got grounded in reality: managing business finances isn’t just about keeping score—it’s about creating freedom. And that freedom doesn’t come from guessing. It comes from owning your numbers, even when they’re not where you want them to be.
Why Bookkeeping Isn’t the Whole Picture
When I was early in my business journey, I assumed I was being responsible because I had a spreadsheet with my expenses. But I wasn’t budgeting for reinvestment. I wasn’t tracking how much time it took me to fulfill an offer—or whether it was even profitable. I was running a business without financial insight, just intuition and urgency. That worked for a while, until it didn’t.
The turning point came when I realized that cash flow issues weren’t just random. They were the direct result of not treating my finances like a system. Once I started looking beyond the books—forecasting what I needed, mapping out when payments were coming in, and setting aside money for taxes and tools—I stopped feeling like my business was controlling me.
Fiscal responsibility, in business, isn’t about being frugal. It’s about being clear. Clear on what’s sustainable. Clear on what’s draining you. Clear on what it’s really costing you—not just in dollars, but in time and energy.
The Real Goals of Managing Business Finances
It’s easy to assume the goal of managing business finances is just to stay “in the black.” But that’s only part of it. The deeper goal—especially for those of us building a business while still working full time—is stability. Clarity. Choice.
I used to think financial freedom was about how much money you make. Now I know it’s really about how well you manage what you have. When I relaunched Backbone America, I didn’t wait for my business to fund itself. I used my job income strategically. I treated it as owner’s equity—investing in tools, training, and systems that would free up time and reduce long-term costs. I wasn’t just spending money. I was planning for sustainability.
I stopped seeing money as something to hustle for, and started seeing it as a tool for design. My financial choices weren’t just about what I could afford—they were about what kind of business I wanted to build. One that could support me without burning me out. One that didn’t require 40 billable hours a week to keep the lights on.
Managing business finances with this kind of intention means making decisions today that your future self will thank you for. Not just “Can I afford this tool?” but “Will this expense move me toward the kind of life I’m building?” That’s real fiscal responsibility—and it’s how you start creating freedom, even before your business is paying all the bills.
Common Missteps New Entrepreneurs Make
Most of us aren’t taught how to manage business finances before we start our first business. And if you’re coming from a salaried job, the shift can be disorienting. You’re suddenly responsible for tracking revenue, covering expenses, pricing your time—and doing it all without a steady paycheck. It’s no wonder a lot of people avoid the numbers until there’s a problem.
Here are a few common missteps I made—and see others make all the time:
Pricing based on what feels fair, not what’s sustainable.
In the beginning, I wanted my offers to be accessible. I didn’t factor in software costs, admin time, taxes, or how long it actually took to deliver. I was essentially paying myself to work. When I finally ran the numbers, I realized I couldn’t afford to grow unless I raised my rates or changed the model entirely.
Treating revenue like profit.
There’s a rush that comes with your first sale—but it’s not all yours to keep. Expenses, taxes, reinvestment…they all need to be considered. Skipping this step can lead to decisions based on false confidence, like quitting your job too soon or launching something bigger than your runway can support.
Avoiding the “uncomfortable” parts.
Finances can feel intimidating, especially if math isn’t your strong suit. But I’ve found that clarity is less stressful than confusion. When I stopped ignoring my cash flow and started checking in weekly—even just 10 minutes at a time—I felt more grounded. It wasn’t about perfection. It was about awareness.
Fiscal responsibility isn’t about being rigid. It’s about being real—with your numbers, your capacity, and your goals. It helps you avoid building a business that looks good on the outside but is quietly draining you behind the scenes.
Financial Practices That Create Sustainability
There’s a quiet power in knowing your numbers—not just reacting to them, but using them to build something that lasts. For me, sustainability didn’t come from a single app or perfect spreadsheet. It came from small, consistent practices that kept me honest about how my business was actually performing.
Here are a few that made the biggest difference:
Monthly financial reviews.
I started setting aside time at the end of each month to check in—not just on income and expenses, but on patterns. Was I consistently underestimating how long projects took? Was I spending too much on tools I wasn’t really using? These questions helped me cut waste and plan more deliberately.
Revenue forecasting tied to service capacity.
Instead of hoping I’d hit a number, I began to reverse-engineer it. If I wanted to bring in $2,000 this month, how many sales did that require? Would I need to take on clients? How many hours of work? Could I realistically deliver that without pulling all-nighters? This helped me say “no” more strategically and price with intention.
Treating time as a financial asset.
In my early days, I didn’t account for how long tasks took me. Once I started tracking my time—even loosely—I realized that some offers were costing me way more than they brought in. That awareness led me to redesign my services and lean more heavily into automation.
If you’re not sure where to start, I highly recommend using SCORE’s free financial projections template. It’s not just for startups seeking funding—it’s a great way to start thinking about your numbers in a future-focused way.
These aren’t flashy practices. They’re not about maximizing every dollar or chasing hypergrowth. They’re about building a business you can trust. One that doesn’t require you to guess—or grind harder—to keep it going.
Building the Financial Muscle While You Still Have a Job
When I relaunched Backbone America, I had that window. A full-time job gave me the freedom to try things, to reinvest without fear, to learn what worked (and what didn’t) without the pressure of needing it all to succeed overnight. I knew how to write a business plan. I’d created financial projections dozens of times before as a business advisor at the SBDC. That part came easily.
But what didn’t come as easily was staying present with the real numbers. I got lax early on with tracking expenses. I didn’t realize how far off my projections were drifting—how much deeper the business was pulling me into the red each month. I wasn’t watching cash flow or calculating margins. I was like an ostrich with her head in the ground, hoping it would all balance out eventually.
That was a humbling lesson.
If you’re building something on the side right now, take it from me: this is the time to build your financial muscle. Not just the ability to earn—but the discipline to manage. Start small. Block 30 minutes a month to review what came in, what went out, and where your energy actually went. Use that time to notice patterns, not punish yourself. Clarity always comes before strategy—and financial clarity is what helps you make wise, confident moves.
Managing business finances while you’re still employed isn’t just about being responsible. It’s about preparing to lead. Because when the time comes to scale or step out on your own, you won’t just be running a business—you’ll be running it well.
Closing: Don’t Just Track—Decide
Managing business finances isn’t about becoming an accountant. It’s about being honest with yourself. Honest about what your business needs to thrive. Honest about what you can afford to take on—and what might need to wait. It’s not about building a flawless system on day one. It’s about developing the habit of paying attention, even when the numbers aren’t where you want them to be.
If you’ve been putting this off, I get it. Finances can feel intimidating, especially if the picture’s unclear. But this part of your business deserves your attention—not just when tax season rolls around, and not just when there’s a crisis. When you manage your money with intention, you give your business a chance to grow on solid ground.
So wherever you are—working full time, running part time, figuring it out as you go—start there. Set a date with your finances. Not to fix everything overnight, but to listen. To learn. To lead with clarity.
Because real financial freedom starts with responsibility. And that’s something you can practice long before you ever quit your job.
