Starlitt Miller helps entrepreneurs, freelancers, and micro-business owners manage their money. She’s spent countless hours working with them to help improve their finances. As founder of Start Accounting And Business Solutions (SAABS), she’s an expert in helping people sort through bookkeeping problems and develop better financial management practices.
Spending so much time with business owners, she’s developed a keen understanding of what makes someone successful when it comes to a critical part of running a business: managing the money.
No amount of talent, customer service, or product matters if the books are off.
So, we asked Starlitt what she believes people need to do to keep their business finances in order. Here’s what she had to say.
The Biggest Struggle for Most People: Discipline
Establishing good financial practices early in the business is one of the most important keys to long-term success, according to Starlitt. And she said that’s hard for many people. Sometimes the business starts as a hobby or side gig but quickly grows into a larger income stream or a full-time job. So creating good habits and sticking to them is essential.
“Being disciplined about separating and treating the business like a business, like it’s separate from you,” Miller said.
In other words, you need a business bank account (and that’s the minimum).
And Starlitt noted most people don’t need a complicated system. You can track revenue and expenses using a spreadsheet.
Starlitt said she’s worked with many entrepreneurs who don’t establish good baseline practices. Instead, they use various payment methods and blend business expenses with personal. And this can cause problems when it comes to taxes and planning for the next year.
“But very often, even at the baseline, it’s like, there’s too much gray space [with] how it’s being organized.”
Starlitt said one of the critical steps for anyone, whether you’re full-time or just running a business on the side, is establishing an LLC, getting an Employer Identification Number (EIN), and separating your business finances from personal. This makes the organization easier, but it also helps protect your personal assets in legal cases involving your business.
Even established businesses don’t take proper financial management steps, according to Starlitt.
“So what I’m seeing is that that baseline of organizing, separating, it’s not taken seriously enough.”
Part of the problem?
Starlitt said she’s worked with many business owners who only look at their bank balance.
“They [businesses] often hired and retained the CPA firm. [And] from an operational standpoint within the year, unless they needed formal statements, they were looking at their bank balance to see how well they’re doing. The cash balance is one part of the picture,” Miller said.
Even after establishing business bank accounts and setting up an LLC, it’s essential to track transactions and understand cash flow.
Starlitt explained many people know they need to look at their financial statements but don’t understand them. And that’s okay. But, it’s important to work with someone (like Starlitt) to learn and be educated on the basics.
“I do encourage them, and I approach our work together in an educational way because I never want someone to work with me because they have to or if they leave me they won’t know what’s going on within their business. That’s not a good position to be in.”
Overcome Bad Habits with a Better System
If tracking finances were easy, everyone would budget, save enough for retirement, and never worry about having cash to cover expenses.
But human beings struggle to create beneficial financial habits. Starlitt said it’s tough to understand why people don’t manage their business income well because you deal with human behavior and everyone has different tendencies.
Starlitt noted each person needs to understand their relationship with money. Everyone has a different background and experience with how they manage it. Those habits will bleed into your business as well.
A critical step in establishing good financial habits is about connecting with the right tools and people, according to Starlitt.
Many business owners only focus on what they owe the IRS and it dictates their view of how their business is performing. Starlitt says the IRS shouldn’t be the driving force behind why you look at your numbers.
“I think it [the IRS] deserves some level of being shrunken down to see a bigger picture because the operational side of your business and how you potentially grow it is why you also need to understand your numbers,” she said.
For many entrepreneurs, it will require a mindset shift.
“The mindset would be the starting point in my opinion and everything else is really about what you need as a person,” Starlitt said.
From there, it’s important to establish a process to match your needs as a business owner and individual.
If you’re looking for a system, Starlitt recommends Profit First to help establish a structure. The priority should be finding a system to benefit your business and your money management habits.
Starlitt’s worked with many companies, and she said those who are most successful set up a system and stick to it.
“Those that set up a system and then maintain it at a basic level, right, so you set up the organizational bins and you put things back where they belong,” Miller said. “You keep everything in its place, and you’re not missing any information.”
When you have your data organized and in the same place, it makes working with partners like accountants and business coaches much easier.
Take the First Step
Finances are intimidating for many business owners. Lots of folks don’t pay much attention because they’re focused on running the company and doing what they’re good at. But, when you signup to be an entrepreneur, this kind of work comes with the territory.
Get yourself registered as an LLC. Or ask an expert (like an accountant) about the best structure for your business. Set up a business bank account (many have free checking). And start tracking your income and expenses using a basic spreadsheet. Each step will be another in the right direction toward good financial health for your business. And when you get to a place where you need additional support, find a great partner (like Starlitt!) to offer expertise.
Following the April 18th tax filing deadline, we figured it was an ideal time to talk money. We wanted to get our members’ input on how they run their business finances and the challenges they face. And at the end, we all walked away with practical lessons we can apply to our own work.
First, we asked folks to reply with a GIF with the first thing that comes to mind when they think of their business finances.
Seeing that money causes a little angst, we asked about the source of stress for business money management. We also wanted to know the things our folks felt good about.
Next, we asked what our members struggle with the most.
Goals are an important part of financial management. We asked our members about theirs.
There was a lot of talk about getting paid. So what happens when a client doesn’t pay?
As our conversation came to a close, we wanted to know the tools and resources that help our members manage their money.
Want to be surrounded by a bunch of people going through the same stuff as you? Join SOCO. It’s that easy. You’ll find support, community, and good folks waiting for you.
Tyler is an art director/graphic designer, illustrator, and all-around creative force born in Lakecity, SC. Holding a degree in Visual Design he went the traditional route of working for a creative agency as an Art Director eventually leading to him spreading his wings as a full time single minded force of visual creativity.
SOCO member Brett Edwards is a freelance photographer and videographer based in Columbia, SC
Brett Edwards noticed something about his roommate.
“It seemed like he did nothing. And he was making more money than I was,” Edwards said with a laugh.
At that time, Brett worked for a dot com company in Chico, California. He’d graduated with a degree in marketing and mass communication. So when he landed on the marketing team at this company, he thought it was “the job.”
“I hated it,” Edwards said. “I was the visual designer, but that meant I basically filled out templates, the Google Ads, the print ads, and all the things that are basically ‘insert picture, insert percentage off.’”
It wasn’t the type of creative work Brett envisioned for his career.
So, Brett talked to his roommate and found out he did tech support for a pellet grill company. It was a small family operation, and when Brett looked them up, he could tell their media and imagery needed some work.
He told his roommate to give him his boss’ number. Brett had an idea.
“I’m gonna cold pitch him on me doing their media.”
And he did it. The company responded and said they wanted to think about it, but asked if he could also do tech support. Brett was game.
He remembered thinking, “that sounds better than continuing in this other job.”
“So then I went on this journey of doing fully remote pellet grill tech support while trying to get them interested in my photos. And they had no interest initially,” Edwards explained.
Brett continually tried to convince his bosses to let him do some photo shoots to improve their website imagery.
His effort paid off because around $2,000 worth of grilling equipment showed up at his house so he could start going to work on capturing great images.
Brett began taking photos, and even after a move to Oregon, he stayed on with the company working in a “hybrid” position. He started social media acounts, fixed things on the website, and did anything else they threw his way.
He didn’t know many people in Oregon, so Brett had more free time on his hands. He asked his roommate if he wanted to make recipe videos. But Brett wasn’t very experienced with video.
So, he watched tutorials on YouTube about creating videos and gave it a go. Once he’d put something together, he sent it to his company.
“And they were like, ‘wow, this is way better than the other videos we’ve tried,’” Edwards said.
Suddenly, Brett got a budget to create more content, buy more equipment, and travel around the country to create recipe videos with sponsored pitmasters and grilling professionals.
Freelancing is the Perfect Fit
Even though Brett was doing more content creation, he was still wearing many hats. He wanted to focus more on photos and videos. An opportunity came knocking when he met folks from a cider company while working on a promo video for a giveaway. He began freelancing with them, and eventually, they asked him to come on full-time.
Brett named his number for what it would take to make a move.
The company said they couldn’t meet the salary requirement but asked if there was anything else they could do to get him on board.
“I was like, you give me total freedom with my scheduling, my timing, and the ability to freelance whenever I want and just laid out all the other stuff I want,” Edwards said.
Their response?
“Sure!”
Overnight, Brett made the transition into the content job he wanted. He worked with an entire marketing team taking photos for billboards, semi-trucks, creating videos, and even working on some ad spaces for Portland Timbers games. His work was reaching thousands of people.
The arrangement worked well because it put Brett in a position to do additional freelance work.
“Since I essentially had this deal with them where I get to keep my schedule free, and I didn’t have to commit to nine-to-five hours, I freelanced all the time. So I way made up for any amount of money they didn’t give me on just my own free time,” Edwards explained.
It was eye-opening.
“That’s when I realized how important it is to keep your schedule built for freelancing. Prior to that, it was trying to find time for projects outside of business hours.”
Pursuing Work that He Loves
Brett’s favorite thing to do is explore. He and his fiancé spent many weekends hiking, camping, and being outdoors in Oregon. Then, he began thinking about how to merge his business with his passion for being outside. He knew some photographers have a niche in the outdoor lifestyle industry.
Brett used a tried and true strategy to begin working with outdoor brands. He started reaching out and pitching his services.
Brett’s first move was to contact companies he saw on Instagram, the ones that targeted him with ads for outdoor equipment. He asked them to send him products, and he’d get shots while on his weekend trips.
And they did.
“So at that point, I was taking pictures of tents, sunglasses, sleeping bags, whatever. But it was in line with what I did in my own time,” Edwards said. “And so then, everything kind of started to merge together.”
It’s been a solo journey for Brett, but he’s hoping to build a small team.
“My ultimate vision was getting a small production house or small creative team together in a physical space and getting my own studio at some point.”
Brett’s move to Columbia was a transition. He’s still getting used to the climate (he moved here in September 2021) and finding new places to explore. But, he’s found community and an opportunity to pursue the work he loves.
Our March Slack Session focused on Women’s History Month. Specifically, we wanted to hear from the women in the community about their career experiences, the challenges, and the things that inspire them.
We started off by asking about the women who inspire our members
Then, we asked how the pandemic has impacted women in the workplace and what that means for the future
Finally, we discussed positive changes that have happened for women in the work world
We’re very thankful to have many incredible women in this community. And conversations like this one help move us closer to making great changes. SOCO is more than a workspace, it’s a community. And you can be part of it. Come visit us by signing up for a tour.
