In the fast-paced world of entrepreneurship, financial savvy isn’t just an asset — it’s a necessity. With each decision, entrepreneurs thread the needle between risk and reward, balancing immediate needs with future aspirations. The art of financial management, therefore, becomes crucial. This is especially true considering that more than 50% of small business owners underestimate how much they’ll have to spend in their first year of business to turn a profit. Additionally, it usually takes these entrepreneurs a year or more to become profitable — only 15% turn a profit in under a year, and 40% within the first or second year of business.  

The journey of an entrepreneur is rife with challenges, making it essential to implement robust financial and investment strategies that support sustained business and personal financial health. Here’s how you can start to build a financial plan that stands the test of time and tumult: 

1. Embrace a balanced investment approach. 

The cornerstone of any sound financial strategy is diversification. For entrepreneurs, whose financial fates are often closely tied to the vicissitudes of their businesses, diversification should be a critical mandate. Adopting a balanced investment approach mitigates risks and enhances the potential for returns across various market conditions. 

Begin by assessing your current financial landscape. How much of your wealth is tied up in your business? If the answer is “a lot,” it’s time to diversify. Consider spreading your investments across multiple asset classes, such as stocks, bonds, real estate, and perhaps even alternative investments like venture capital or commodities. Each class reacts differently to the same economic event, which can help stabilize your overall portfolio’s performance.  

Jordan Gillissie, founder and CEO of Equifund, a FINRA- and SEC-registered alternative investment platform that provides retail investors with access to emerging companies, also recommends creating an investment policy statement, or a “written document that outlines your portfolio allocation, target returns, and rules for rebalancing.” He also asserts, “It’s essential to base your investment strategy on reasonable forecasted returns, typically in the 6%-10% per year range. Avoid the temptation to pursue excessively high returns, as this can lead to taking on unnecessary risk.” 

2. Understand the financial strategies that fuel long-term stability. 

Entrepreneurs often focus on the growth and expansion of their businesses, sometimes at the expense of personal financial stability. Understanding and implementing fundamental financial strategies are paramount in establishing a buffer that sustains both your business and personal life. 

So, make sure to regularly review and manage your expenses and income streams. Implement budgeting and financial forecasting as foundational practices. Under30CEO, a media site covering news and trends for young entrepreneurs, suggests creating a comprehensive budget outlining your expenses, income, and savings goals. “It will help you live within your means, avoid overspending, and prioritize your financial goals,” the site says. “You should also regularly review your progress and adjust your budget and financial plan.” 

Utilizing tools and software that provide real-time financial data can help you make informed decisions swiftly. Additionally, set up an emergency fund that covers at least six to 12 months of personal and business expenses, ensuring you can weather unforeseen financial downturns without drastic impacts on your business operations. 

3. Spread your investments beyond just stocks. 

While stocks might be the most talked-about investment vehicle, they are also among the most volatile. Expanding your portfolio to include bonds, mutual funds, real estate, or even newer areas like crypto-assets and crowdfunding can provide growth opportunities while buffering against the stock market’s volatility. 

If you’re new to bonds, start with government or high-quality corporate bonds, which offer lower risk compared to stocks. Real estate can be another lucrative option, providing tangible assets that diversify your investment portfolio. For those intrigued by the digital revolution, consider allocating a small portion of your portfolio to crypto-assets, which, despite their volatility, offer high growth potential and a hedge against traditional financial systems. 

Successful entrepreneurship is as much about innovative business strategies as it is about prudent financial management. By adopting a balanced investment approach, understanding key financial strategies, and diversifying your investments, you can create a robust framework that supports both the immediate and future financial needs of your entrepreneurial journey. The goal is to build a portfolio that reflects your risk tolerance, time horizon, and financial goals, creating a safety net that allows you to focus on what you do best: innovating and expanding your business. 

In your pursuit of financial wisdom, stay enthusiastic and energetic, but remember that the most effective learning comes from a place of humility and compassion. Each financial decision is a steppingstone toward a more integrated work-life balance and a testament to your commitment to not just surviving in the business world, but thriving. 


  • Brittany Hodak

    Keynote Speaker and Author

    Brittany Hodak is an award-winning entrepreneur, author, and customer experience speaker who has delivered keynotes across the globe to organizations including American Express and the United Nations. She has written hundreds of articles for Forbes, Adweek, Success, and other top publications; she has appeared on programs on NBC, CBS, ABC, and CNN; and she has worked with some of the world’s biggest brands and entertainers, including Walmart, Disney, Katy Perry, and Dolly Parton. She originated the role of Chief Experience Officer at, and she founded and scaled an entertainment startup to eight figures before exiting. Entrepreneur magazine calls her “the expert at creating loyal fans for your brand.” Brittany’s debut book, Creating Superfans, will be in stores on January 10, 2023.