29-04-2025
3 Financial Systems Solopreneurs Need To Build To Avoid Burnout
Entrepreneurship has been a viable path to financial stability, especially for women who want to build wealth with the flexibility needed to balance various responsibilities. In 2025, that trend shows no signs of slowing. More than 33.3 million small businesses fuel the U.S. economy, and solopreneurs are at the heart of this movement. Data reveals that the share of American businesses operated by solopreneurs grew from 76% in 1997 to 84% in 2020, and recent surveys suggest that figure may be even higher today.
Despite this growth, solopreneurs face a unique set of challenges that require strategic and emotional resilience. Unfortunately, burnout has become a common reality, especially for those entrepreneurs who lack systems in place to manage their finances, time, and may be carrying the added weight of cultural expectations.
Research highlights how many Black women internalize the Strong Black Woman or Superwoman Schema (the belief that they must be emotionally resilient, financially self-reliant, and constantly successful, even at the expense of their own health and sustainability). While these narratives celebrate strength and perseverance, they can also lead to chronic stress, overwork, and financial self-neglect, further exacerbating the risks of burnout.
Technology has made it possible to grow a solo business without employees or co-founders. But there is a catch: it has been reported that nearly 42% of small business owners mention having limited or no financial literacy when they launched, and 45% say they have lost $10,000 or more in profits due to that lack of knowledge. So, how can solopreneurs grow and stay protected in today's business landscape? These three financial systems offer a starting point.
In business, clarity is currency. Without a consistent system to track income and expenses, it becomes challenging to make informed decisions, plan for growth, or avoid financial pitfalls.
Relying on memory is not a sustainable path, and it increases the chances of making financial decisions driven by the current moment, motivation, or financial trauma, rather than ones based on data that can be anticipated. Instead, building a simple but structured tracking system allows you to see where your money is coming from, where it is going, and what is staying in the business. More importantly, it gives you the confidence to scale with intention rather than guesswork.
Start setting up your financial system by separating your personal and business finances. Open a dedicated business bank account, and set up a tool to track your money flow. Today's tools make it easy to automate financial tracking with various budgeting apps, or even a simple spreadsheet or traditional financial journal can help. Set a weekly time block to review your income and outflows.
One of the most common mistakes solopreneurs make is waiting to 'feel ready' or 'make enough' before paying themselves. But building a sustainable business does not start when your business hits six figures, it begins when you create a habit and support the growth with those habits.
Paying yourself consistently signals that your work has value, that your well-being matters, and that your business exists to support your life and not the other way around, so you know how much revenue you will need to aim for to keep paying yourself and growing your business while it prepares you forecast from an objective perspective. When you neglect to pay yourself, you risk reinforcing cycles of under-earning and burnout.
Start by calculating a reasonable baseline amount you can pay yourself regularly, even if it is modest at first. Whether you choose a fixed amount or a percentage of net revenue, consistency is key. Paying yourself also has practical benefits: it helps you establish credit, manage personal budgeting, and invest for retirement, which becomes important if you are, for instance, planning to buy a house in the future. It also reduces financial stress, boosts confidence, and creates a clear boundary between personal and business money, critical for long-term peace of mind.
One of the biggest financial challenges solopreneurs face is volatility on both sides of the ledger. Unlike traditional employees who manage expenses against a fixed paycheck, solopreneurs often deal with fluctuations in both income and spending. That unpredictability can lead to stress, reactive decisions, and financial instability.
In the conversation we had in the Brown Way To Money Podcast with Paula Pant, host of the Afford Anything podcast, she mentioned: 'Everyone has volatility on the spend side. And what's unique about being an entrepreneur or being self-employed is that you also have volatility on the income side. So you have volatility in both directions.'
Pant suggests that entrepreneurs review their actual bank deposits from the last 12 to 24 months (not just invoices sent) and then identify the month with the lowest income during that period. 'Can you peg the fixed costs to the lowest income month?,' she asks. 'If you can at a minimum do that, then that means all of the excess you make above that lowest amount is money that you can then put into a discretionary fund… that you can pull from on months where your expenses trend higher.'
And here is where a revenue distribution system can be powerful in avoiding burnout, in addition to setting up your tracking system for income and expenses: Determine your baseline income from the lowest month, match your fixed expenses to that baseline, allocate any income above the baseline into flexible buckets like your emergency or buffer fund, Owner's pay, business investments and profit or savings.
By anchoring your spending to a conservative, data-driven baseline, you can stabilize your financial decisions, even in months when your income fluctuates. This reduces burnout, builds resilience, and gives you more freedom to plan and grow, without panic.
Bottom line: Implementing simple financial systems becomes non-negotiable as you grow and want to protect your well-being. By tracking income and expenses, paying yourself consistently, and planning for volatility with a revenue distribution system, you have an opportunity to reclaim control of your business finances and peace of mind.
