Starting a business in Richmond, VA comes with its share of challenges, and managing finances is one of the trickiest. Growing your startup while juggling personal expenses can feel like walking a tightrope. Profits may take time to roll in, but good financial habits don’t have to wait. Your financial wellness as an entrepreneur can significantly influence the long-term success of your business—and your sanity. Here’s what you need to know.

1. Understand Financial Wellness (No, It’s Not Just About Money)

Financial wellness is the state of your financial health. For entrepreneurs, it’s about the quality of both your personal and business finances—yes, even though they should be kept separate. Maintaining good habits in both areas can improve not just your business but also your mental health. Remember, a stressed entrepreneur isn’t a productive one. Managing cash flow, expenses, and planning for the future are key components of financial wellness.

2. Separate Your Personal and Business Finances (Because Your Wallet Deserves Better)

Keeping your personal and business budgets separate is the golden rule of entrepreneurship. Set up a business checking account to prevent your business expenses from clashing with your personal finances (because who wants to explain to the IRS why your grocery bill is mixed in with office supplies?). Separating your accounts also makes tax time much smoother—imagine being able to enjoy a Richmond coffee while calmly preparing your taxes instead of tearing your hair out.

That said, be aware that your personal finances still play a role. Lenders may want to check your personal finances when you apply for a business loan. But the clearer the division, the easier it is to manage both sides of the coin. Tools like budgeting apps or spreadsheets can help keep you on track—so no more hiding receipts in your sock drawer.

3. Master Cash Flow Management (The Art of Not Running Out of Money)

Cash flow can make or break your Richmond-based business. There are two main ways to track cash flow: the direct method (tracking real cash) or the indirect method (tracking receivables and payables). Either method works, as long as it keeps you from experiencing that dreaded “cash is king” moment when the bank balance is lower than your confidence level.

To optimize cash flow, look for ways to cut expenses and increase efficiency. Automate invoices and payments to save time (and your sanity), and negotiate terms with suppliers—Richmond landlords can be pretty reasonable if you’re polite and persistent. The better you manage cash flow, the healthier your business—and your peace of mind—will be.

4. Build an Emergency Fund (Because Life Happens)

No one likes to think about emergencies, but they happen—especially when you least expect them. Setting aside an emergency fund to cover 3-6 months of expenses can save your business (and maybe your sanity) when unexpected costs arise. Start by putting aside a small percentage of your revenue in a high-interest account. It’s like a safety net for your entrepreneurial high-wire act. Just be sure to keep personal and business emergency funds separate—your personal stash shouldn’t have to rescue your business from every rainy day.

5. Consult Experts for Retirement and Tax Planning (You Can’t Do Everything, Sorry)

Entrepreneurs often focus on the here and now, but don’t forget about future you! For retirement and tax planning, it’s a good idea to consult professionals. Tax laws can be tricky, and a financial advisor can help you navigate deductions, retirement contributions, and those Richmond tax nuances. Maximize your savings now to avoid headaches later.

Need help with funding? Contact Viking Funding at 754-240-8620 to discuss how we can help your business thrive. Financial wellness may take time to master, but the rewards—for both your business and personal life—are worth the effort.