10 October 2025

Running a business is inherently demanding, but the uncertainty of managing finances when cash is tight can add an extra – and damaging – layer of pressure.  

In a survey last year, one in four (24%) UK owner/managers reported that their mental health had been directly affected by the stress of managing their business finances in the past year. Add to this that 80% of small business owners report poor mental health a few times a year at least, and we can see that better financial planning can directly impact owners’ peace of mind.  

The harsh reality is that for owner-managed businesses, the distinction between personal and professional financial stress often dissolves. When your business suffers, your personal wellbeing does too. 


Where does financial anxiety come from? 

Financial stress is a widespread concern that can lead to health issues such as anxiety, depression, insomnia, and even cardiovascular problems. For business owners, this stress is often amplified by specific pressures that can feel like their sole and urgent responsibility. 

 

  • Cash flow and funding uncertainty: The need for new finance to support cashflow is a major worry, particularly when securing loans becomes difficult. A quarter of owner/managers in one survey had backed out of a loan due to the personal guarantee attached, and 13% had been refused a business loan in the last two years.  

  • Debt worries: Beyond business loans, the same survey found that 31% of those whose mental health was impacted had taken on personal debt to fund their business. This blurring of business and personal finances creates a continuous, high-stakes worry that affects all areas of life. 

  • Lack of control and visibility: Not having a clear understanding of where money is going each month creates extra uncertainty, increasing the risk of cash flow issues, unnecessary expenses, and difficulty securing funding. 

  • The 'What If?' Scenarios: Worries about unexpected events, like an inability to work, a life-altering illness, or the financial security of a family if an owner passed away put more pressure on owners to guard against an impossibly wide range of scenarios. 

 

The upshot is that, for entrepreneurs, fixing financial worries around managing cash flow and profitability can bring benefits well beyond the business.  

 

Financial planning as a wellness strategy 

A well-structured financial plan provides a baseline for judging success, making decisions and planning ahead – reducing the uncertainty around the choices that arise every day. When working with clients, Haines Watts advisors focus on three key areas – gaining a clear view of what’s going on, mitigating risks in a pragmatic sense and keeping a measure of visibility over the future.  

 

1. Gaining control through detailed business budgeting

Creating and sticking to a detailed budget for your business eliminates uncertainty and provides a clear overview of your financial activity. Working with an financial expert such as an accountant can help you build systems that support clear thinking and planning day-to-day. 

 

  • Financial visibility: Start with noting where business money is going each month eliminates guesswork when it comes to allocating capital and comparing investments.  

  • Expense and debt management: Creating a budget helps you control spending and reduce debt strategically, instead of just focusing on the most urgent fire day-to-day. In times when you need to cut back on unnecessary spending, you can take a broad view of your costs and work out how to reduce spending without damaging operations. 

  • Proactive forecasting: Setting up regular financial reviews to compare actual business performance against forecasts helps you to track cash flow fluctuations and avoid the stress financial shortfalls. This can also give you the time you need to secure finance in a pinch. 

 

2. Protecting yourself from the unexpected

Inevitably, there will be events out of your control that arise – slow sales months, unexpected expenses or cost changes – which can put a squeeze on your finances. But with some advanced planning, you can build plans to mitigate the impact and reduce the headaches. 

 

  • Business safety nets: Your financial plan can ensure that there are adequate financial resources in place to cover interruptions or expenses that arise, such as a suitable cash runway, documented procedures for handling processes and contingency plans for managing operations if a key employee is off sick.

  • Separating business and personal risk: If you’re taking out debt, personal guarantee insurance can offer some extra peace of mind for your credit score, helping keep business and personal life separate.

  • Owner protection: If you’re worried about the impact of illness or being incapacitated on your family, illness and income protection cover can provide a safety net and protect your lifestyle. 

 

3. Creating a long-term business vision

In the long term, stress and anxiety come when business and personal lives are not working for each other – whether that’s worries about your revenue not being able to support your family or even working too much to be able to enjoy the fruits of your labour. 

Working with an advisor can help you build a business finance plan that suits your broader life goals, rather than simply keeping your company ticking over.  

  • Career choices and fulfilment: When your business finances are in order, you can focus on career choices based on personal fulfilment rather than just financial need. 

  • Retirement planning: Even the most passionate business owner usually needs to consider when they’ll call it a day. Creating a solid exit plan can ensure you and your family are taken care of and protect your business legacy. 

  • Investment stability: Creating a long-term financial plan for both business reinvestment and personal assets can help you make the most of your assets and safeguard your future. 

 

Get the support you deserve

Running your own business doesn’t have to mean doing it alone. The right support can help you get more from your time, manage your stress and enjoy the journey, rather than getting stuck in stress and anxiety. 

At Haines Watts, we specialise in advising and supporting owner-managed businesses across the UK. And we understand the day-to-day challenges you face because our partners are business owners too. Whether you need a sounding board for your ideas or trusted advisor to safeguard your financial future, we’ve got you covered. 

 

  • Strategic budgeting & forecasting, giving you real-time visibility and a sense of control. 
  • Business advisory that supports your plans and provides practical advice on business improvement and expansion. 

 

Why not contact your local Haines Watts partner to start building your roadmap to financial security and peace of mind? 

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