Cash Flow Masterclass 2.4

Money Habits That Build Business Resilience

• Separate personal and business accounts to reduce stress and keep bookkeeping clean.
• Build resilience with a weekly 10-minute money check-in, plus a small safety buffer.
• Create your own terms to focus on growth, not chaos.

Stress-proofing your business could be as easy as making a few small tweaks to your habits, says Founder of Brooklyn Boy Bagels, Michael Shafran.

Business accounting can feel like a rollercoaster. One moment cash is flowing, the next you’re stressing about how to keep the lights on. It’s a cycle Michael Shafran, founder of Brooklyn Boy Bagels, knows only too well.

Since launching his Sydney pop-up in 2013, he has grown it to include a bakery and two cafes, as well as a wholesale arm. However, his business growth didn’t come without some hard-earned lessons along the way. 

Shafran’s secret is that business accounting isn’t just about keeping flawless books. He has learnt it’s also about simple money habits that can cut stress and help to keep your business on track. Here’s how:

Habit one: the weekly 10-minute check-in

When pressed on which business budget habit he wished he’d learnt quickly, Shafran is quick to respond. “I wish I’d gotten into the habit of setting aside time each week to check my profit and loss, and check my cash flow. When you look at your numbers, you start seeing irregularities and you can catch things blowing out before they become disasters.”

Shafran recommends spending at least 10 minutes weekly to cast an eye over everything from wages, energy bills, supplier costs and expenses. Consider it a form of business bookkeeping that keeps nasty surprises at bay. 

Habit two: separate business from personal 

Got everything landing in the one pot? Mixing personal and business spending doesn’t just complicate tax time, it makes it harder to see if your business is working, says Shafran. For him, “Being able to track all of my living expenses and separate that from my business made my life easier, plus my accountant and bookkeeper were happier, too!”

Habit three: build a buffer 

Shafran’s golden rule for money? Be proactive, not reactive.

Cutting costs or finding new business helps build a cash buffer, but a skilled bookkeeper can be worth their weight in gold. “Good bookkeepers are priceless,” he says. “Not only will they keep everything clean, they’ll also let you know what’s coming up in terms of your bills.”

Habit four: prepare for the ATO

Early on, Shafran realised the best way for him to avoid ATO-related stress was to park PAYG and tax money separately. “If you stay on top of that each week, it keeps things low-drama long term so you’re not unduly stressed anytime a government bill comes in or at tax time,” he says. 

Habit five: create your own terms

Everyone has their “aha” moment in business. For Shafran, it was when he switched from standard supplier terms to a pay-on-place model, immediately transforming his cash flow.

“Giving people up to 30 days to pay is a long tradition in the hospitality industry but what that does is put you in the bill collection game,” he says. Lesson learnt? Get into the habit of negotiating supplier terms to suit you.

Today, Shafran says he has the freedom to focus on what he actually enjoys: growing his business and making really good bagels. 

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