Money Matters: 5 Financial Red Flags Every Small Business Should Spot Early

Running a small business can feel like spinning plates  especially when you're wearing every hat. But one of the most important areas you can’t afford to overlook is your finances.

I’ve learned this the hard way.

Between launching businesses, closing a couple, and learning to rebuild with a clearer, more intentional focus, I’ve seen just how quickly money leaks can sink a ship. Especially when you’re too busy doing the work to look up and check the map.

So whether you're just starting out or feeling like the wheels are a bit wobbly, here are five financial red flags to watch for in your small business  and what to do about them.

🚩 1. You're Not Paying Yourself (or it’s erratic at best)

If you’re constantly reinvesting in the business and living off scraps, you’re not alone but that doesn’t mean it’s sustainable.

Why it’s a problem:
You’re essentially working for free and building a model that won’t support you long-term.

What to do instead:
Factor your wage into your pricing. Create a separate business account so you can track what’s coming in and what’s going out.

🚩 2. You’re Not Sure What Your Breakeven Point Is

You know money’s coming in, but are you profitable?

Why it’s a problem:
If you don’t know your breakeven point, you might be running at a loss without even realising it.

What to do instead:
Figure out your monthly expenses (including wages, tax, and overheads), and calculate how much you need to earn to cover them.

💡 Need help? This is something we walk through inside our Online Course and Membership community and it’s a total game-changer.

🚩 3. You Don’t Know Where Your Cash Is Going

You’re working hard, clients are paying… but there’s nothing left over at the end of the month?

Why it’s a problem:
It’s likely a cash flow issue, not a profit problem. Without clarity on your spending, you can’t course correct.

What to do instead:
Use a basic cash flow tracker or digital dashboard. You don’t need to be an accountant, but you do need visibility.

🚩 4. You’re Pricing Based on Feelings, Not Facts

If your pricing was set because “that’s what others charge” or “I wanted to be affordable,” you could be underselling yourself.

Why it’s a problem:
You can’t scale a business that’s underpriced. It creates resentment and burnout.

What to do instead:
Build your pricing from the costs up, not the competition down. What do you need to charge to run profitably, sustainably, and pay yourself?

Want a pricing checklist or calculator? We’re happy to share tools from our Membership library, including our Pricing Calculator & Budget Template.

🚩 5. You Don’t Have a Plan for Tax or Super

If you’re not setting money aside regularly, tax time can be a nasty shock.

Why it’s a problem:
It creates unnecessary stress and risks non-compliance.

What to do instead:
Set up separate bank accounts for tax and super, and transfer a % of each payment as it comes in. We also recommend working with a bookkeeper or trusted accountant early, not just at EOFY.

Insert expert guide insight here:

“Even setting aside just 15–20% of income into a separate tax account changed everything for my cashflow.”
— Shelley Cox, Your Business Compass

Ready to Get Clear on Your Numbers?

If any of these red flags feel a little too familiar, you’re not alone — and you’re not failing. You’re just at a point where clarity needs to become your top priority.

👉 Start here:
Take our free Clarity Quiz to get a quick snapshot of your business blind spots.

Then, if you’re ready for some personalised guidance and community support, consider:

• Booking a 15-min Clarity Call
• Joining our Membership or Online Course
  
• Or exploring our next Financial Knowledge Boost session inside the Member Hub
  
  

Want to Contribute?

Are you a small business owner who’s overcome one of these red flags? We’d love to include your voice in this post or future ones — reach out here to be featured and share your insights with our growing community.