How to Run a Small Business Successfully (Lessons from a Former Business Owner + CPA)
Running a successful small business isn’t about being the busiest or the flashiest.
It’s about building something that’s profitable, sustainable, and fits the life you actually want to live.
If you’re a new small business owner — or just thinking about starting one — I want to share the lessons I wish someone had told me early on. These are the things that make or break your business: understanding your “why,” structuring things legally, watching profitability, staying tax-ready, and managing your cash wisely.
How do I know? I used to run a brick and mortar furniture flipping store, stocked with local vendors and wholesale clients. I also worked at a Big 4 accounting firm in tax and had my CPA license, and now I blog and create content online. So it’s safe to say I’ve seen all sides.
Let’s dig in.
This blog contains affiliate links. As an Amazon Associate and affiliate, I will make a small commission on purchases made from links in this blog.
This article is meant to inform people of their options as a business owner. But it is always recommended to speak to a professional for legal and tax advice. This article is not intended to provide either.
1. Start With Your “Why” — and Revisit It Often
Before you even think about LLCs, marketing, or profit margins, ask yourself one question:
Why am I doing this?
That “why” is your compass. It’ll help you make decisions when things get messy (and trust me, they will).
Maybe your “why” is flexibility — you want to be home with your kids or control your own hours.
Maybe it’s financial independence, or maybe it’s creating something meaningful with your hands.
There’s no wrong answer. But when you’re clear on that purpose, you’ll know how to build your business around it.
For example, if freedom and time are your top priorities, you might choose a simple structure, limited clients, or digital products instead of scaling with employees.
If growth is your goal, you’ll make different financial decisions — investing in systems, hiring help, and setting up scalable models.
When I first started my furniture business, I didn’t have kids. So to me, balance wasn’t as important to do. About a year into owning my shop, I had my first kid, and I realized how much I was burning myself out. I made a pivot in my business to return to doing this business at home, and doing more content creation once I had more children (3 under 4). What’s great is that as my kids get older, I can continue to transform my business to what me and my family need at that point in time.
But trust me, it can be hard to say no to opportunities. However, if it isn’t the right one that fits your business model, you have to revist your why and really understand if it’s a good decision for you and your business.
👉 Pro tip: Write your “why” down and look at it quarterly. Your business will evolve, and your purpose might shift with it. Keeping it front and center helps you stay grounded when decisions get tough.
2. Choose the Right Business Structure (and Set It Up Properly)
When you’re just starting, legal stuff can feel intimidating. But getting your business structure right from the beginning saves you a ton of stress (and money) later.
Here’s the short version:
Sole Proprietorship: This is the simplest option — just you, no formal setup. The downside? You and your business are legally the same, so there’s no liability protection.
LLC (Limited Liability Company): This is what I recommend for most small business owners. It’s flexible, offers legal protection, and keeps your personal and business finances separate.
S-Corp or Corporation: These can save you on self-employment taxes if your business is profitable and making a certain threshold of income, but they come with more paperwork and costs. If you get to this point, you should be working with a CPA.
Many CPAs have horror stories of business owners come in midyear after running everything through their personal account, unsure what was deductible or how to track it.
Please — open a separate business bank account right away. Keep your income and expenses separate from day one.
And if you’re not sure which structure fits you best, it’s worth paying a professional for an hour of guidance. One conversation with a CPA or small-business attorney upfront can save you thousands later.
3. Focus on Profitability — Not Just Sales
Here’s something most new business owners get wrong:
High sales don’t automatically mean high profits.
I’ve seen six-figure businesses barely breaking even, and tiny businesses quietly thriving because they understand their margins.
Revenue is what comes in.
Profit is what’s left after everything else — expenses, taxes, your own pay.
If you don’t know your numbers, you can’t make smart decisions.
Here are a few key ones to track:
Gross Profit Margin – How much you make after direct costs. (Think, the price you sold a flipped furniture piece for less the cost of that furniture and paint you put on it)
Net Income – What’s truly left after all expenses. (Think gross profit less storage fees, accounting fees, etc.)
Cash Flow – How money moves in and out of your business each month.
Break-even Point – The amount of sales you need to cover your costs.
Here’s what I recommend: set aside one morning each month to review your books. Look at your income and expenses. Notice trends. Ask yourself, What’s working? What’s draining my time or money?
And please — pay yourself, even if it’s small at first. You deserve compensation for your work. It also forces you to build profitability into your pricing. I really loved the book Profit First when I was in the messy middle of my business. I wish I had picked it up sooner because it really helped me set a plan that was small business focused.
4. Keep Your Books Clean and Up-to-Date
Bookkeeping doesn’t have to be scary, but it does need to be consistent.
If you can, use software like QuickBooks. These tools sync with your bank account and make it easy to track expenses, categorize spending, and generate reports.
If you’re not ready for software yet, even a simple spreadsheet works — as long as you use it regularly.
Here’s a basic monthly checklist I would suggest:
Record all income and expenses.
Reconcile your bank account.
Review your profit & loss statement.
Set aside money for taxes (more on that next).
Bookkeeping isn’t just about taxes — it’s how you understand your business. When you see the numbers clearly, you’ll notice what’s paying off and where you’re leaking cash.
Think of it like checking your car’s dashboard. You wouldn’t drive across the country without glancing at your fuel gauge. The same goes for your business finances.
5. Taxes: Plan Ahead, Don’t Panic Later
This one’s big — and it’s where most new business owners get caught off guard.
If you’re self-employed, no one’s withholding taxes for you. That means you’ll need to pay estimated taxes four times a year (usually April, June, September, and January).
A good rule of thumb: set aside 25–30% of every dollar you earn into a separate “tax savings” account. That way, when tax time comes, you’re ready.
You’ll also owe self-employment tax, which covers Social Security and Medicare. It’s not fun, but it’s part of running your own show.
Now, the upside — you get to deduct a lot of your business expenses:
Supplies and materials
Mileage or business travel
Office expenses (including a home office if it’s used regularly for work)
Subscriptions, tools, or software
Professional services (like your CPA!)
Keep receipts or digital records of everything.
And don’t wait until tax season to organize — your future self will thank you. But, and I can’t emphasize this enough, I recommend working with a CPA as your income/deductions grow. Don’t take advice online (even from me!) on what you can take as deductions, because rules change and trust me, people on the internet are often wrong.
If your business starts making steady profit, talk to a CPA about whether an S-Corp election could save you on self-employment taxes. It’s not right for everyone, but it’s worth asking about once you’re consistently earning.
PSA: ALL INCOME IS REPORTABLE. You’ll often hear you only need to report income if it’s greater than $XX amount (often hear $600 or $20K). These numbers are when wholesalers and payment processors are required to issue you a 1099. But all income, from whatever source derived, is reportable to the IRS. Then you may be able to make deductions and exclusions from there depending on laws and regulations.
6. Manage Your Cash Flow Like a Pro
One of the most painful lessons I learned early on was that profit on paper doesn’t pay the bills — cash flow does.
You can be “profitable” but still run out of cash if your timing’s off — for example, when customers pay late or expenses hit all at once.
To avoid that stress, try this simple 3-bucket system:
Operating Expenses – Everything you need to keep the business running.
Owner’s Pay – Your salary or draw.
Taxes – The account you don’t touch until tax time.
Every time money comes in, divide it up between those buckets.
If you’re visual, you can literally use separate bank accounts or sub-accounts.
And aim to keep 1–2 months of expenses in savings — your mini emergency fund. It makes a huge difference when slow seasons hit or unexpected costs come up.
7. Handle the Legal and Administrative Stuff Early
It’s not the most exciting part of business, but it’s essential.
Make sure you:
Have the right licenses and permits for your industry.
Carry insurance (general liability at minimum — and product or professional coverage if needed).
Use simple contracts for clients, even if it’s just a one-page agreement.
You don’t have to overcomplicate it — but do protect yourself.
8. Build Good Business Habits Early
Once you’ve got the foundations down, success comes from consistency.
Here are a few habits that separate thriving small businesses from struggling ones:
Review your finances monthly. Don’t wait until tax time to see how you did.
Set goals — and track them. Financial and personal.
Reinvest strategically. Don’t spend just because you made money; spend where it moves you forward.
Keep learning. Read, listen to podcasts, or find a mentor who’s been where you are.
And honestly? The best business owners I’ve worked with weren’t the ones who knew everything.
They were the ones who stayed humble, curious, and consistent.
9. Common Mistakes I See New Business Owners Make
Let’s talk about what not to do — because I’ve seen these over and over:
Mixing personal and business money.
Ignoring bookkeeping until April.
Underpricing services out of fear.
Spending every dollar that comes in.
Forgetting to save for taxes.
Avoiding professional help until there’s a problem.
If any of these sound familiar, don’t worry — you can fix them. Start fresh this month.
Final Thoughts
Running a small business is one of the most rewarding things you can do — but it’s also one of the hardest.
It stretches you, teaches you, and forces you to grow in ways you never expected.
The key isn’t perfection — it’s awareness and consistency.
When you know your numbers, understand your “why,” and make decisions with clarity, your business stops feeling like chaos and starts feeling like freedom.
And remember: you don’t have to be a CPA to run a smart business.
But thinking like one? That definitely helps.
You’ve got this. 💛