Skip to content
5 min read

3 Financial Blind Spots Holding Your Business Back

Featured Image

We all have blind spots. Whether in life or business, these unseen obstacles can keep us from achieving our full potential. Over the years, I’ve realized that addressing these blind spots can be the difference between a business that survives and one that thrives.

In my experience working with small to mid-sized businesses, three financial blind spots stand out as the most common—and the most damaging. Let’s explore these pitfalls and, more importantly, how to overcome them.

Misaligned Pricing: Are You Undervaluing Your Services? 

Pricing can make or break your business. Yet, it’s an area where many business owners hesitate or struggle. One key question to ask yourself is: What price point are you competing at?

There are typically three approaches to pricing:

  1. Low-Cost Leader: Competing on price alone. This is tough to sustain unless you operate at significant scale. 
  2. Boutique Pricing: Charging a premium for niche expertise or specialized offerings. 
  3. Luxury Pricing: Leveraging your brand to command high prices, similar to brands like Lamborghini. 

Beyond strategy, your gross margin—the difference between sales revenue and the cost of goods or services sold—is critical. Analyzing your margins can help you identify which services or clients are most profitable and whether your pricing reflects the value you’re delivering.

Another factor to consider is inflation. Incremental price increases, done regularly, can help you stay ahead without causing a customer revolt. It’s much easier for customers to accept small adjustments over time than a large hike all at once.

Action Steps:

  • Reassess your pricing strategy. Does it align with your value proposition and market position?
  • Monitor your gross margins across services and clients to uncover hidden opportunities.
  • Implement small, regular price increases to keep up with inflation and protect profitability.

Poor Cash Flow Management: Avoiding Hidden Risks

Even profitable businesses can run into trouble if they don’t manage cash flow effectively. Cash is the lifeblood of your business, and poor cash management can lead to unnecessary stress—or worse.

Here are three key areas to focus on:

  1. Billing and Collections: Are you invoicing regularly and following up on overdue payments? Inconsistent billing can create unnecessary cash flow gaps.
  2. Accounts Payable: Stretching payment terms with vendors (e.g., 30 or 60 days) allows you to hold onto cash longer and improve liquidity.
  3. Tax Planning: One of the most common cash flow blind spots is failing to set aside money for taxes. I’ve seen this happen to many profitable businesses, and the penalties can be severe. A simple solution is to create a separate account for taxes and treat it as untouchable.

Action Steps:

  • Establish a consistent billing process and follow through on collections.
  • Negotiate payment terms with vendors to optimize cash flow.
  • Set aside tax funds in a dedicated account to avoid surprises.

Lack of a Financial Strategy Tied to Your Goals

Having clear, measurable goals is essential for success, but it’s not enough. You need a financial strategy that aligns with those goals and ensures you’re tracking progress along the way.

One of the best frameworks I’ve found is the SMARTER Goals method from Michael Hyatt's The Best Year Ever. This takes the familiar SMART goals (Specific, Measurable, Actionable, Relevant, Time-Bound) and adds two key elements: Risky and Exciting. Goals should challenge you, but they should also inspire and energize you.

Once your goals are set, it’s crucial to regularly assess and adjust. In the fast-paced world of business, things change quickly. Evaluating what’s working, what’s not, and making adjustments is key to staying on track.

Finally, consider bringing in an advisor to help you uncover blind spots. Sometimes, an outside perspective is what you need to see what’s not working and find the best path forward. 

Action Steps:

  • Use the SMARTER Goals framework to set ambitious, measurable goals for your business.
  • Regularly assess and adjust your strategy based on performance and changing circumstances.
  • Work with a trusted advisor to ensure you’re staying focused and addressing blind spots.

Illuminate Your Blind Spots 

The trouble with blind spots is that you can’t see them. But that doesn’t mean they have to hold you back. By addressing misaligned pricing, improving cash flow management, and creating a financial strategy tied to your goals, you can build a stronger foundation for your business.

If you’re ready to tackle your financial blind spots and take your business to the next level, let’s talk. At Bender CFO Services, we specialize in helping business owners achieve clarity and confidence in their financial strategies. Schedule an introductory meeting and together, we can turn your blind spots into stepping stones for growth.