HerBusiness CEO Suzi Dafnis reveals three financial pitfalls she’s seen repeatedly over 30 years, from founder-dependence to hope-based money management that creates cashflow stress
What’s happening: Business coaches working with owners for decades are documenting consistent patterns of financial failure. The same three pitfalls appear repeatedly: over-dependence on founder capacity, avoidance of financial data, and absence of connected revenue strategy.
Why this matters: For business owners wondering why growth feels fragile despite hard work, these patterns explain the instability. When revenue depends entirely on personal time, numbers remain untracked, and activities lack strategic connection, even busy businesses face constant cashflow stress.
Three decades of working with business owners provides perspective on what actually causes financial failure. Suzi Dafnis, CEO of HerBusiness and Host of the HerBusiness Podcast, has seen the same patterns repeat countless times.
“After working with business owners for 30 years, it’s always one of these three pitfalls,” Dafnis states directly.
The first pattern centres on founder dependence. Businesses built around personal capacity hit hard limits.
“You’ve built a business that relies too heavily on YOU,” Dafnis explains. “When revenue depends on your personal time, energy, and capacity… it creates a fragile financial model. Which means you are one illness, one holiday, or one busy season away from cash-flow stress.”
This aligns with research showing that cashflow is one of the biggest concerns for small business owners, with many missing out on tax breaks that could help.
The second pitfall involves avoidance of financial reality. Dafnis acknowledges the psychological barriers.
“You’re using ‘hope-based’ financial management,” she says. “I did this for a long time, too. Avoiding your numbers because they are overwhelming, confronting, or confusing… you’re flying blind.”
The short-term relief creates long-term damage.
“And while it’s easier in-the-moment, it will create inconsistent cash flow, underpricing, and missed opportunities,” Dafnis notes.
The third pitfall is strategic disconnection. Activities happen without connection to overall revenue goals.
“Last? You’re operating without a clear revenue and profit strategy,” Dafnis explains. “Everything in your business — from your marketing campaigns, your offers, your launches — they should connect. Everything is ONE system that branches from your revenue and profit strategy.”
The solution requires building sustainable systems rather than reacting constantly.
“The solution? Build sustainable revenue systems,” Dafnis advises, then outlines the components:
“Pricing based on value. Creating leveraged offers that reduce dependence on 1:1 work. Establishing consistent marketing and sales rhythms. Tracking a small set of key financial indicators weekly. Planning revenue intentionally rather than reacting month to month.”
The shift from reactive to strategic changes everything.
“Your goal is to move from ad-hoc to strategic,” Dafnis emphasises.
The outcome transforms the owner’s relationship with their business.
“That’s when you’ll begin to see your business working FOR you,” Dafnis concludes.
For business owners trapped in exhausting cycles of feast and famine despite working constantly, Dafnis’ framework offers diagnosis. The problem isn’t lack of effort. It’s structural dependence on personal capacity, avoidance of financial reality, and absence of strategic coherence. Understanding tax obligations and financial management becomes essential as businesses try to move from ad-hoc to strategic operations.
Those patterns can change. But only when recognised and addressed systematically.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
