Tips For Financial Success

by Diane M. Calabrese | Published May 2026

 

 

Can you sell square pegs to someone who must fill round holes? It is very unlikely. And trying harder, with hand-painted pegs or attention-grabbing ads, still will not make the sale.

The top tip for financial success is the oldest one: Meet the needs of the customer.

Meeting the needs of a judicious buyer is part of catering to wants. A prospective customer may want a product with additional features beyond the basics but can’t budget for it.

Thus, investing in ways to persuade a potential buyer to pay more for desirable (but not truly necessary) extras could alienate the customer in the short term (by taking up time) or in the long term (when the bill comes due).

Then, what about introducing customers to innovations in products and services that will make their businesses stronger and more profitable? It is important as can be. Even so, the introduction must be done in the context of first meeting needs.

In business-to-business transactions, companies on either side of the buyer-seller relationship share the same objective. They want to be profitable.

In business-to-consumer transactions, such as power washing contractor-to-homeowner, the objectives of each side vary slightly. The contractor aims to be profitable. The homeowner aims to keep property in top condition so that it retains its value and perhaps increases its value.

The common denominator in all interactions between buyer and seller is return on investment (ROI). A manufacturer of pressure washers must verify the ROI in raw materials, marketing, transportation, sales, etc. A contractor must verify the ROI in tools, chemicals, vehicles, etc.

ROI applies to the purchaser of services as well. For example, when a homeowner or commercial building owner invests in exterior cleaning, the investment is made with the anticipation that outcomes promised will result.

Never overpromise regarding any transaction. Financial success of a business depends upon customers who are satisfied because they got what they expected for the price they paid.

Every expenditure a business makes should be assessed for the return it brings. Inundating prospective buyers with electronic (text or email) notices of discounts, sales, and limited time offers is the sort of approach that can be cost ineffective.

If the customer starts deleting without reading because of a deluge coming from all directions and types of sellers, the money spent to set up the digital contacts becomes a loss. Respect for a prospective customer’s time is important.

The respect extends to requesting reviews of purchases. Two features of requests for reviews that put off customers are rigidness (rating one to five) and the repetition. If a customer does not rate or review on the first request, it’s better to not keep asking. Show respect for time.

The truism “time is money” is manifest everywhere in 2026. Buyers of all sorts express concerns about how much things cost, the mismatch between income and cost of living, and how much time they must spend carrying on day-to-day activities.

Time is spent because they must bag their own groceries, pump their own gas, navigate intense traffic, and so on. Adding to the complexity of customers’ lives is not a positive move.

Analysis of ROI is a must. One helpful tool for analysis is benchmarking. Many vendors offer benchmarking products. The Cleaning Equipment Trade Association (CETA) includes the price for benchmarking (if a member wishes to participate) in the cost of membership.

ROI by another name is a cost benefit analysis (CBA). When planning a new venture, do a CBA.

CBAs can disappoint, but they can also prevent a financially destructive decision. As many distributors have told us in past, they have considered adding a service department only to decide against it because the cost of doing so could not be justified by the benefit.

The benefit of including a service department is obvious on the surface. It brings customers into the brick-and-mortar establishment, customers who may look and buy. Equipment owners appreciate being able to seek repair and maintenance assistance at the establishment where they bought a machine.

But the cost of the service department may be prohibitive. A dedicated staff member who is technically skilled, space, and equipment required to do repairs and maintenance can exceed the amount of money that can be collected for doing repairs.

Business experts on achieving financial success lead by example in one way. They don’t give away their expertise for free. They publish books and write articles that they put behind a pay wall.

Consider the pay wall as implicit advice to get paid for rendering services. (As a corollary, do not sell products at prices so low they are not profitable.)

Content on websites may bring more visitors, but will the visitors become buyers, or are they just looking for free information?

Similarly, will a YouTube video recruit a viewer to a customer, or will the viewer simply use the useful information? The video maker invested time and money in the video. What’s the ROI?

In 2018 (updated in 2022), the California Council on Economic Education (CCEE) published “8 Tips for Financial Success” at the DFPI (California Department of Financial Protection and Innovation) website.

The eight tips apply specifically to individuals, but business owners get some solid reminders by reading them. Choose carefully, plan spending, and budget are three of the most salient tips that easily cross over to business. (See https://dfpi.ca.gov/wp-content/uploads/sites/337/2019/06/8_Tips_for_Financial_Success.pdf.)

A good product (or service) that gives customers the outcomes they want and returns a profit on investment forms the core of financial success. There’s a little more to it, though.

Not surprisingly, the “little more” involves regulators. Every level of government takes a keen interest in business establishments. The interest stems from the government’s need to find sources of revenue.

While a business sells a product or service to generate income, federal, state and local governments generate their operating budgets by levying taxes and fees on businesses (and individuals). A business will not be a financial success if it ignores or forgets to comply with a government requirement.

Thus, staying legally compliant becomes much more than a tip for financial success. It becomes a mandate.

 

Legal Compliance

The structure of a business (e.g., owner/operator, LLC, corporation) determines the type of internal recordkeeping that must be in place. The records are required to comply with reporting requirements for taxes and payroll as well as special requirements (e.g. Affordable Care Act reporting for companies with 50 or more employees).

The state in which the business is anchored imposes its own requirements on business. Requirements may include an annual report or biennial statement, statement filing fees, franchise tax, and more.

Then, there are the licenses, permits and certifications that may be required, particularly by state and local governments. In short, staying legally compliant constitutes a tip for financial success because failure to do so can undermine the financial health of a company.

Calculating ROI and/or CBA prevents self-deception. Consequently, the method of accounting selected for a business can boost financial success.

For example, although an accrual method of accounting can reduce a tax burden, it is not an easy method to manage. And its transient figures may cause an owner to think things are going better than they are.

A less sophisticated cash accounting method gives an owner a clear picture of cash flow, and it’s easy to understand. It makes self-deception much harder.

Deception merits a second look. An owner looking at the many orders for a product or contract jobs in the queue could become overly optimistic.

The tired cliché of not counting chickens before they hatch applies. Until a transaction is complete, it is not a done deal. A company slated to buy products may suddenly fold. A bad interval of weather may result in cancellation of many contract jobs.

Whether using a CPA or a bookkeeper—either of whom can be compensated on an in-house or contract basis—someone must handle bank reconciliation in addition to accounts receivable, accounts payable, available cash and payroll. Informed decision-making regarding where to spend can only be made with accurate financials.

Businesses can insure against almost every type of loss. Those legally required as well as other insurance costs should be evaluated regularly with a broker who may be able to help with bundling or alternatives that reduce cost.

A financial tip that some would find extraordinary not long ago involves cybersecurity. It is simply this: Threats are real, pervasive, and constantly mutating; don’t overlook cybersecurity.

Trained team members must use hygienic methods in the digital realm. It’s the surest way for a business to avoid suffering a financial loss from a virus or ransomware attack.

A business can conduct a vulnerability scan in-house by testing its own protocols or hiring a consultant; costly in time and money, but necessary.

Twenty-six years into the 21^st century, many financial tips have not changed; but cybersecurity issues are new, vexing, and impossible to ignore.

Even so, after considering the many components of a business that affect financial success, the most important one remains: If a customer wants round pegs, don’t try to sell him square ones.