An occasional look at issues facing Wyoming business owners and entrepreneurs from the Wyoming Small Business Development Center (SBDC) Network, a collection of business assistance programs at the University of Wyoming.
By Steen Stovall, regional director for Converse, Natrona, Niobrara and Platte counties,
Wyoming SBDC Network
Profitability doesn’t happen by accident. It results from consistent financial discipline and clear visibility into your numbers. These five practical steps can help strengthen your business and improve long-term profits.
-- Track your cash flow weekly: Ask two simple questions each week: How much cash came in, and where did it come from? And how much went out, and where did it go?
If you can’t answer these quickly, you’re operating without visibility. Weekly cash tracking provides a real-time snapshot that financial statements alone may not. Over time, patterns emerge -- recurring expenses, seasonal dips and predictable revenue cycles. This insight allows you to forecast ahead.
A 13-week cash-flow forecast is a practical tool for anticipating shortfalls and making proactive decisions. For newer owners or those less comfortable with financial statements, this is one of the most powerful habits you can build.
-- Build cash reserves: Healthy businesses prioritize liquidity. While holding a full year of operating expenses may be unrealistic, keeping only a few weeks of cash is risky. A practical goal is three to four months of operating expenses in reserve.
Also, consider securing a line of credit for emergencies. But treat it as backup, not routine funding. Strong cash reserves reduce stress, provide stability and allow you to act quickly when opportunities arise.
-- Invest in quality bookkeeping: Accurate financial records are foundational. If you handle your own bookkeeping, consider hiring a professional. If you already have one, evaluate the quality of reporting.
Good bookkeeping should be consistent, timely, concise and trustworthy. If you avoid reviewing financial statements because you don’t trust the numbers, improvement is needed. Treat bookkeeping as an investment in better decisions -- not just an expense.
-- Establish a monthly financial review: Receiving financial statements isn’t enough. You need a structured review process. Each month, compare year-over-year results, evaluate growth trends, analyze margins, review cash flow and track key metrics.
Over time, this routine helps you understand your financial story and communicate it clearly to lenders, partners and your team.
-- Create a scorecard: A scorecard tracks the few metrics that matter most -- revenue growth, margins, cash balance, inventory and fixed costs, for example. Monitoring 10-15 key indicators monthly creates an early-warning system that highlights what’s improving and what needs attention.
Profitability isn’t just about increasing revenue. It’s about managing cash, maintaining discipline and consistently reviewing performance. Build these habits, and your business will be positioned for sustained success.
If you’d like to learn more about increasing the profitability of your small business, contact your Wyoming SBDC Network adviser who is available to provide no-cost, confidential assistance. To get started, go here.
The Wyoming SBDC Network offers no-cost advising and technical assistance to help
Wyoming entrepreneurs think about, launch, grow, reinvent or exit their business.
In 2025, the Wyoming SBDC Network helped Wyoming entrepreneurs start 42 new businesses;
support 2,017 jobs; and bring a capital impact of $12.8 million to the state. The
Wyoming SBDC Network is hosted by UW with state funds from the Wyoming Business Council
and funded, in part, through a cooperative agreement with the U.S. Small Business
Administration.
To ask a question, call 1-800-348-5194, email wsbdc@uwyo.edu or write Dept. 3922, 1000 E. University Ave., Laramie, WY 82071-3922.
For more information, go here.
All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.
