Running a business—whether you sell shirts, tumblers, stickers, DTF prints, or sublimation products—is exciting! But if your finances aren’t in order, you could be losing money without even realizing it.
Proper financial management helps you track profits, avoid tax headaches, and set your business up for long-term success. Let’s break down how to manage your business finances step by step! 👇
1. Separate Business & Personal Finances ASAP 💳
📌 Why This Is Critical:
✅ Keeps taxes simple—no mixing personal expenses with business ones.
✅ Helps you track profits accurately.
✅ Builds business credit (important for future funding).
✅ How to Separate Finances:
✔️ Open a Business Bank Account – Required for LLCs & recommended for all businesses.
✔️ Get a Business Credit Card – Use it for supplies, ads, and expenses.
✔️ Track Business Income & Expenses – Don’t mix personal spending with business funds.
🔥 Pro Tip: Need help choosing a business bank? Bluevine and Novo offer great free business banking options!
2. Track Every Dollar (Don’t Guess Your Profits!) 💵
If you’re not tracking how much you’re making and spending, you have no real control over your finances.
📌 Best Ways to Track Your Finances:
✅ Use Accounting Software – Try QuickBooks or Wave for easy bookkeeping.
✅ Track Daily Sales & Expenses – Know where every dollar goes.
✅ Check Profit Margins – Your sales price must cover all costs AND make a profit.
🔥 Pro Tip: Not every sale = profit. If you don’t factor in materials, time, shipping, and fees, you might be underpricing!
3. Set Up a Tax System (So You’re Not Scrambling Later) 📝
📌 What Taxes Do Small Businesses Pay?
✅ Income Tax – Based on your profits (filed annually).
✅ Self-Employment Tax – Covers Social Security & Medicare (15.3%).
✅ Sales Tax – If your state requires it, you must collect & remit sales tax.
✅ How to Stay on Top of Taxes:
✔️ Set aside 20-30% of every sale for taxes.
✔️ Pay quarterly estimated taxes if you expect to owe over $1,000.
✔️ Use TaxJar to automate sales tax collection & filing.
🔥 Pro Tip: Work with an accountant before tax season to avoid surprises!
4. Create a Budget & Stick to It 📊
Budgeting isn’t just for personal finances—your business needs one too!
📌 What to Include in Your Budget:
✅ Fixed Expenses – Website fees, subscriptions, rent, insurance.
✅ Variable Expenses – Materials, shipping, ads, seasonal costs.
✅ Emergency Fund – Set aside money for slow months or unexpected expenses.
🔥 Pro Tip: Review your budget monthly to see where you can cut costs and maximize profits.
5. Pay Yourself (Even If It’s a Small Amount!) 💸
If you’re not paying yourself, you’re just running an expensive hobby.
📌 How to Pay Yourself as a Business Owner:
✅ Sole Proprietors & LLCs – Pay yourself directly from profits.
✅ S-Corps – Pay yourself a salary + distributions to save on taxes.
🔥 Pro Tip: Start with a small salary, then increase as your business grows!
6. Reduce Unnecessary Expenses & Boost Profit Margins 📉
Are you spending too much on materials? Paying high transaction fees? Cutting costs = higher profits.
📌 Ways to Reduce Expenses:
✅ Find Cheaper Suppliers – Check wholesale options for blanks, vinyl, ink, and packaging.
✅ Negotiate with Vendors – Ask for bulk discounts or better pricing.
✅ Optimize Shipping Costs – Use Pirate Ship for cheaper shipping rates.
🔥 Pro Tip: Every $1 saved on expenses is $1 extra in profit!
7. Price Your Products for Profit (Not Just to Cover Costs!) 💰
📌 How to Price Your Products:
✅ Calculate all costs (materials, labor, packaging, fees, taxes).
✅ Add a profit margin (usually 2x-3x your cost for retail pricing).
✅ Consider perceived value—premium pricing = higher perceived quality.
🔥 Pro Tip: Use a pricing calculator like Craftybase to ensure you’re actually making money on every sale.
8. Keep Business Debt Under Control 🚨
While business loans & credit can be helpful, too much debt can sink your business.
📌 Smart Debt Management Tips:
✅ Only take on debt if it helps grow profits (e.g., bulk inventory purchases).
✅ Pay off high-interest debts first.
✅ If you need funding, try small business grants or 0% interest credit cards.
🔥 Pro Tip: Apply for a business line of credit when your business is doing well—you’ll have it available if needed later!
9. Set Financial Goals & Plan for Growth 📈
Don’t just track sales—set clear financial goals to scale your business!
📌 Examples of Smart Financial Goals:
✅ Increase monthly revenue by 20% within 6 months.
✅ Reduce expenses by 10% by switching to better suppliers.
✅ Save $5,000 for future investments in equipment or marketing.
🔥 Pro Tip: Break big financial goals into small action steps to track progress.
10. Get Help When You Need It (Invest in Financial Guidance!) 🏦
Even the best business owners need expert advice sometimes.
📌 Who Can Help Manage Your Finances?
✅ Bookkeeper – Tracks day-to-day income & expenses.
✅ Accountant – Helps with taxes & financial planning.
✅ Business Coach – Provides strategies for scaling your revenue.
🔥 Pro Tip: If you’re struggling with finances, investing in a professional will save you money in the long run!
Final Thoughts: Take Control of Your Finances Today 🚀
Managing your business finances doesn’t have to be stressful—a few simple systems can keep you profitable and organized.
✅ Separate business & personal finances
✅ Track every dollar (use accounting software!)
✅ Set aside money for taxes (so you’re not surprised later!)
✅ Reduce unnecessary expenses & boost profit margins
✅ Set financial goals & stick to your budget
💬 What’s your biggest struggle with business finances? Let’s chat in the comments! 🚀
