Fueled by ambition and a drive to innovate, women have made significant strides in business.

Currently, female-led small enterprises constitute 36 percent of all businesses. In 2018, there were 12.3 million women-owned firms in the U.S., a dramatic leap from just 402,000 in 1972. While launching a business has become more accessible for women, the challenges of managing finances can still be daunting.

Countless women have built remarkable businesses across various sectors like media, skincare, fashion, food, and construction. They often emphasize that the most valuable financial lessons come from hard-won experience. We reached out to several successful entrepreneurs to gather their insights.

Be your own strongest supporter

Christina Stembel, founder of Farmgirl Flowers, has spent nine years mastering the art of bootstrapping. Despite not having a formal business education, she has gained invaluable knowledge about operations, management, and finance. The most crucial lesson she learned is the importance of advocating for herself.

Initially, Stembel thought her business journey would be straightforward. Today, Farmgirl is a billion-dollar brand, but the path was filled with challenges. From tech glitches to hiring missteps, she faced numerous setbacks that taught her to assert her needs.

“One key takeaway from my unplanned expenses is that mistakes often have little standing in the way of their occurrence. The more elusive warning signs are, the more significant the potential mistake,” she remarks.

To maintain financial health, she meticulously reviews company contracts and researches major purchases before finalizing them. “Knowledge is power, and it equips us to defend against costly errors. Stay informed, ask questions, and seek assistance when necessary,” she advises.

Plan your finances with foresight — especially for taxes

Annie Tevelin, the founder of SkinOwl, learned the hard way about the importance of financial planning. One April, she had to dip into her savings to cover her company’s tax bill. This eye-opening experience prompted her to think ahead, not just for herself but for her expanding business.

After settling her tax obligations, Annie recognized that juggling entrepreneurial tasks had distracted her from essential financial responsibilities. She now holds monthly sessions with her accountant to keep her business on track and prepare for tax season.

Know your finances intimately and engage with them

How meticulous are you with your personal finances? Do you review your credit card statements in detail, or do you just skim them? Anne Hogarty, CEO of Extend Fertility, used to skim before embracing entrepreneurship. While she managed to avoid credit card debt and contribute to her 401(k), budgeting wasn’t her focus.

When she got engaged, she and her partner opened a joint account, which highlighted their spending habits. “We found we were spending hundreds monthly on cabs, adding up to thousands yearly! While we valued those extra minutes of sleep, we realized that cutting back could fund vacations or savings,” she shares.

They decided to reduce their taxi usage and adopted a new approach to their finances by setting a yearly budget and monitoring their progress. This mindset has also benefited their company, adhering to the principle, “If you can’t measure it, you can’t improve it.” They hold each other and employees accountable for financial decisions, fostering transparency and alignment.

Over-budgeting can work in your favor

In business, under-promising and over-delivering is common wisdom, but what if we applied that strategy to budgeting? Stacy Tuschl, president of Academy WI, a performing arts school in Wisconsin, has consistently over-budgeted to prepare for unexpected challenges as her company grows. “I don’t rush decisions; I understand that choices today deeply impact tomorrow's outcomes. Taking time to plan has proven transformative,” she explains.

Never hesitate to negotiate for more

Here's a striking fact: Many women shy away from negotiating salary increases, while men typically do. Becca Freeman, co-host of the Bad On Paper podcast, encourages women to always negotiate for higher pay, as there’s often room for improvement. “In job negotiations, always counter offers and aim for more,” she suggests, noting that her most popular podcast episodes focus on salary discussions.

When Freeman began her career, she felt grateful for any salary offered. However, as she progressed, she learned the value of negotiation. “I was surprised that even a small company could increase my salary during negotiations. Over three years, I earned over $20,000 more than my initial offer, a sum that compounds over time. Negotiating is a crucial step towards closing the gender pay gap, and the worst response you can get is ‘no.’”