The 3 Financial Mistakes Most Small Business Owners Don’t Realize They’re Making

Published: June 2, 2025

When you’re running a business, your focus is often on survival — sales, systems, and staying ahead of the curve. But even savvy business owners can overlook blind spots that slowly drain cash, limit funding options, or stunt long-term growth.

At Sasha Watson Financial Solutions (SWFS), we help clients clean up exactly these issues before they become costly. Let’s look at 3 of the most common (but fixable!) mistakes — and how to avoid them.

❌ Mistake #1: Running the Business from a Personal Account

It’s tempting, especially in the early days, to run everything through one account — but mixing personal and business finances creates messy books, limits your credibility with lenders, and can lead to tax issues down the road.

💡 Fix:

• Open a dedicated business checking account and route all income/expenses through it.

• Get a business debit or credit card and use it for purchases only related to your work.

• Use basic software or our SWFS spreadsheet to track income categories and expenses.

❌ Mistake #2: Not Paying Yourself Consistently

Many small business owners treat their business income like it’s whatever is left over after bills. But failing to pay yourself regularly leads to inconsistent income, which hurts your financial confidence — and your ability to qualify for loans or grants.

💡 Fix:

• Set a baseline "owner's draw" (even if small) and automate it weekly or monthly.

• Track what you pay yourself over time — this becomes proof of income when you need it.

• Use profit-first principles to build sustainability into your pay structure.

❌ Mistake #3: Waiting Too Long to Seek Capital

Whether it’s a grant, a line of credit, or emergency funding, waiting until you’re desperate for capital reduces your options — and puts you in a weaker position when negotiating terms.

💡 Fix:

• Build your funding profile before you need it: business registration, EIN, DUNS, and business credit.

• Apply for grants and small business programs during your stable seasons, not your hardest ones.

• Talk to a financial strategist (like SWFS) early — we can help position you before it’s urgent.

🔁 Bonus: These Mistakes Are All Reversible

The good news? None of this is permanent. Every business owner we work with has made some of these mistakes — the power is in recognizing them and correcting course.

At SWFS, we help small business owners:

• Structure their financial systems

• Build their funding readiness

• Create growth-focused plans (not survival-only plans)

You don’t have to guess your way through this. Let’s get your back-end right — and build something scalable.

📩 Book a Business Finance Audit Call
📄 Download Our Grant-Readiness Checklist

Sasha Watson
Founder & CEO, SWFS