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When I first started my business, I approached budgeting with the optimism of someone who hadn’t yet been burned. I treated it like a tidy math problem: Plug in a few cost estimates, apply a sensible cushion, and the numbers would hold. At least, they did in the spreadsheet.
What I didn’t realize at the time was that business finances aren’t as predictable as most people would like. They don’t follow rules the way spreadsheets pretend they do. They behave more like weather — hard to predict, full of surprises and capable of swinging dramatically based on a single shift in direction. That realization came slowly, usually through trial by fire.
Of all the financial lessons I’ve learned since those early days, two continue to shape the way I run my business. They sound simple, but they’ve fundamentally changed the way I think about spending, saving and planning.
Related: 5 Top Financial Tips for Entrepreneurs
Lesson 1: Expect everything to cost twice as much (and take twice as long)
Everything? Yes — especially in those early years.
Not in a pessimistic or dramatic way, but in a realistic one. If there’s one thing I’ve seen consistently, both in my business and in conversations with other founders, it’s that things always take longer and cost more than you think they will.
Maybe it’s that contractor who takes six weeks instead of three. Maybe it’s the tech stack that needs five additional integrations to work properly. Maybe it’s the time cost of revisiting a project because you made a rushed decision up front. You’re not necessarily budgeting poorly — you just don’t know what you don’t know.
In those early days, business finances are at their most unpredictable, and there are almost always invisible costs in execution that you can’t see in the planning stage. You’re still learning. Your systems are fragile. Your vendors and team might still be new. You don’t yet have reliable baselines, and you haven’t yet built the muscle memory to forecast with accuracy.
Eventually, this levels out. The business becomes more predictable. You find better partners. And, frankly, you get better at managing finances. But in those early years, invisible costs lurk everywhere: training time, review cycles that drag, vendor misalignment, tech hiccups, unexpected fees. The little things you forget to add as line items (or just don’t know about yet) can really add up.
Now, when I forecast expenses, I don’t just add a generic buffer — I build in a true margin of safety. We run multiple scenarios: best case, expected case and worst case. For any major investment, I ask, “What happens if this costs twice as much and takes twice as long? Do we still want to do it?”
Sophisticated planning means pressure-testing not just the numbers, but the assumptions underneath them. If the ROI still holds under stress, we move forward. If it doesn’t, we either adjust scope or wait. The goal isn’t to predict the future perfectly — it’s to avoid being surprised by the entirely predictable.
Related: 7 Financial Pillars That Make or Break Growing Businesses
Lesson 2: You don’t save money if you just spend it somewhere else
I used to think I was being financially savvy when I negotiated better deals, swapped tools or cut recurring costs. And to be clear, those are good habits. But I had a blind spot: Every time I “saved” money, I spent it just as quickly elsewhere.
At the time, I’d get real satisfaction from trimming costs. Found a cheaper software? Win. Promoted from within instead of hiring externally? Another win. Swapped out a tool, renegotiated a rate, cut an unnecessary subscription? All wins.
And then I’d take those savings and (without realizing it) spend them on something else. Sometimes that new margin went to a branding update. Sometimes to a software platform we didn’t truly need. Other times, it disappeared into the ambiguous category of “miscellaneous expenses” — things that felt justified in the moment, but didn’t move the business forward in any measurable way.
I told myself those costs were inconsequential. After all, we’d just saved the money elsewhere, right? But I didn’t realize I was chasing efficiency while perpetuating waste. The problem wasn’t that I was spending; it was that I wasn’t using those savings intentionally to fuel growth where it actually mattered.
Now, when we save money on something, I don’t reallocate it reflexively. Instead, we treat that margin as strategic capital — money that can be redeployed, but only if it directly supports our growth goals or operational efficiency. Sometimes it sits for a quarter. Sometimes it gets earmarked for a high-leverage initiative we’ve already prioritized. Either way, that discipline gives us space to invest with intention — not impulse — and ensures that savings actually create value, not just movement.
This shift created financial discipline, not just breathing room. More importantly, it gave us better visibility into which investments were truly driving growth, versus which ones were just reactive gap-fillers that felt urgent in the moment but didn’t move the business forward.
Related: 5 Ways to Keep Your Business Finances Healthy
What these lessons protect you from
It’s tempting to treat finances like a back-office function: something to review monthly or quarterly. But your financial habits are often the clearest reflection of your leadership.
Do you act with discipline or impulsiveness? Do you chase savings without a strategy? Do you overcommit and underprepare?
These are patterns, and they compound quietly. Handled well, they create stability and space to grow. Handled poorly, they chip away at your margins, your options and your confidence. If your current habits aren’t moving you in the right direction, course-correct now before the consequences become permanent.
Sure, there will always be months where it feels like the money comes in and flows right back out. That’s part of the reality of entrepreneurship. But the more you can build financial awareness into your leadership muscle, the less chaotic those moments will feel.
So if you’re looking for a place to start: Double your cost estimates. Be intentional with your savings. And treat every financial decision like it matters.
Because it does.
