3 Financial Moves Every Entrepreneur Should Make in Their First Year

When starting a business, most new entrepreneurs focus on closing sales, building a brand, or perfecting their product offerings. While these tasks are essential, there’s one foundational element that often gets overshadowed in the excitement of launching a business: your financial structure. 

Without a solid financial foundation, even the most promising startups can falter. In fact, poor financial planning is one of the top reasons many small businesses fail within their first few years. The good news? You can avoid the most common pitfalls by making a few smart financial moves early on. 

Here are three of the most important financial steps every entrepreneur should take in their first year. 

Separate Your Personal and Business Finances

One of the very first (and smartest) financial steps you should take is separating your personal and business finances. While this might seem like a small detail, it’s a game-changer that can help you avoid legal complications and financial chaos down the road. 

Why It Matters 

Mixing personal and business finances - known as commingling funds - can lead to major problems: 

• Legal risk: You could lose the limited liability protection of your LLC or corporation. 

• Tax headaches: Untangling mixed expenses is time-consuming and error-prone. 

• Lack of clarity: You won’t have an accurate picture of your business’s financial health. 

How to Separate Finances 

• Open a business bank account: Choose a bank that offers small business-friendly services like Chase or online options like Novo. 

• Get an EIN: An Employer Identification Number (EIN) from the IRS is essential for taxes, opening accounts, and establishing legitimacy. 

• Use accounting tools: Software like QuickBooks, Xero, or Wave can help you keep transactions clean, categorized, and audit-ready. 

Pro Tip: Separating your finances is also the first step toward building strong business credit. 

SEO Keywords: separate business and personal finances, business bank account for LLC, why you need an EIN 

Build and Leverage Business Credit Early

Many new entrepreneurs delay building business credit, but doing so from day one can make a massive difference in your ability to grow and scale your company. 

Why Business Credit Is Critical 

• Protects your personal credit: Stop relying solely on personal credit cards or loans. 

• Unlocks funding opportunities: Get access to 0% interest credit cards, trade lines, and business loans. 

• Increases your purchasing power: Buy what you need to grow, when you need it. 

How to Establish Business Credit 

• Form a legal entity: Register as an LLC or corporation for credibility and protection. 

• Get a DUNS number: This identifier from Dun & Bradstreet allows you to start your business credit profile. 

• Open vendor tradelines: Work with suppliers that report your payment history to business credit bureaus. 

• Apply for business credit cards: Look for cards that don’t report to personal credit and offer 0% interest. 

Pro Tip: 
Want help accessing up to $250,000 in business credit, without relying on personal funds? 

Fund&Grow has helped thousands of entrepreneurs just like you secure the capital they need to launch, grow, or scale. Their team walks you through the process, helping you get the funding your business deserves. 

👉 Pre-qualify today - it’s fast, free, and won’t impact your credit score. 

Create a Cash Flow Strategy (Not Just a Budget)

While having a budget is important, a cash flow strategy is what keeps your business running smoothly during growth phases and unexpected slowdowns. 

Why It Matters 

A budget is static—but cash flow is dynamic. It’s all about how money moves in and out of your business in real time. 

Creating a strong cash flow strategy helps you: 

• Plan for lean months: Know when sales might dip and prepare accordingly. 

• Build reserves: Aim for 3–6 months of operating expenses saved. 

• Make smarter decisions: Use real cash data to determine when to invest in growth, marketing, or new hires. 

Cash Flow Tools to Try 

You don’t need a finance degree to manage cash flow. Tools like Float, Pulse, or even Google Sheets can help forecast expenses, track payments, and plan for the future. 

Pro Tip: 
Your cash flow insights can also guide how and when to pursue additional funding, adjust pricing, or trim expenses to boost profitability. 

SEO Keywords: small business cash flow, first year business budget, startup cash flow strategy 

Final Thoughts: Set the Financial Foundation for Scalable Success 

Your first year in business is more than just landing clients or launching products - it’s about laying a strong financial foundation that will support your long-term growth and sustainability. 

By: 

• Separating your personal and business finances, 

• Building strong business credit early on, and 

• Creating a proactive cash flow strategy, 

…you’ll be positioning your business to weather challenges, seize opportunities, and scale with confidence. 

These aren’t just administrative tasks, they’re strategic moves that help you think and operate like a true CEO from day one. The more intentional you are with your finances now, the more freedom and flexibility you’ll have as your business grows. 

About the Author:

Ari Page is the Founder and CEO of Fund&Grow, helping entrepreneurs, investors, and small business owners secure up to $250,000 in 0% interest business credit cards. Since 2007, he has grown Fund&Grow into an Inc. 5000 company, securing nearly $2 billion in business credit cards for thousands of clients. With 6,000+ 4.9-star reviews and an A+ BBB rating, Fund&Grow is a trusted leader in business funding. Ari is also the author of Fund&Grow: Easy & Affordable Ways to Get Money for Your Business and a passionate advocate for mindset, success, and the Law of Attraction. He lives in Spring Hill, FL, inspiring others to grow their businesses and achieve financial freedom.