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  • Writer's pictureTracy Irvine

Financial Tips for Small Business Owners: Navigating Uncertain Times

Running a small business is rewarding, but it comes with various challenges, finances being one of them - especially when the geopolitical landscape has gone wild and numbers simply aren’t your thing.

Whether you're an entrepreneur struggling to keep your small business afloat or a seasoned business owner trying to navigate unpredictable economic times, handling finances for your business is crucial but can feel daunting. In this blog post, we will share our tips on how you can manage your finances during periods of economic uncertainty.

Create a Financial Plan

One of the most effective ways to navigate any kind of uncertainty is by creating a plan. A financial plan helps you forecast your business's income and expenses and make decisions influenced by the right information. Knowing your short and long term goals is a helpful place to start, from there you can evaluable your current financial position, and identify any risks your business might be up against.

Most accountancy software will allow you to run reports and track your performance, helping you make decisions at every stage. You’ll see where you have opportunities to reduce costs and maximise your best income streams.

Have Financial Reserves

It is always good to set aside a portion of your revenue to create financial reserves in anticipation of uncertain times. Having a financial reserve can help you cover sudden expenses, unexpected costs, or a downturn in business. I recommend aiming to have three to six months' worth of expenses set aside as a reserve.

Stress-Test Your Business

Stress-testing your business means developing a set of scenarios and projecting what the impact would be on your business. Consider how your sales, cash flow, and stocks would be impacted. This can help you prepare for potential financial challenges and make appropriate adjustments to your budget, stock, and marketing strategies.

Maintain Relationships

Relationships matter, no more so than in uncertain times. Doing what you can to keep in favour with your bank and suppliers will help you if you face an unforeseen situation. Banks are more willing to lend money to businesses with good credit scores. Similarly, good relationships with suppliers can help you negotiate better payment terms, discounts, and extended repayment plans to help you manage your cash flow better.

Stay Up To Date

Finally, staying up-to-date on regulations and laws relevant to your business is essential at all times, but avoid costly mistakes might seem even more important when the economy feels more difficult. A great bookkeeper or accountant will always keep you up to date on anything that will impact your business finances.


Managing finances during uncertain times can be challenging, but it is not impossible. By creating a financial plan, establishing financial reserves, stress-testing your business, maintaining good relationships with your banker and suppliers, and getting the support of an expert bookkeeper or accountant, you have the best chance of navigating financial uncertainty and taking care of your financial health.Preparing for the future is always more advantageous than reacting to it, so start planning your business's financial future today.

If you’d like to talk to me about how I work with small businesses like you contact me via one of the options below

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Call us on 07999901220 or email

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