Old habits die hard in business. But holding onto outdated financial practices can quietly drain your profits and hold back growth.
Aaron Clippinger runs a sign company in San Diego with 30 employees. He also owns SquareCoil, a software system that is designed to help other sign companies operate more profitably.
By paying closer attention to his business finances, he made changes that made the company more profitable. “Once we started costing all projects, it became clear where the company was bleeding,” he explains.
As the sign industry continues evolving with new technologies and changing customer demands, breaking up with bad behaviors isn’t just about improving your bottom line – it’s about positioning your business to thrive in a competitive market.
Here are five financial habits sign shop owners need to leave behind in 2025.
- The “I’ll Check the Numbers Later” Syndrome
If you’re in the middle of catching up on your bookkeeping to file your taxes for 2024, you’re probably resolving to do a better job of keeping up with your finances this year. Bookkeeping isn’t just about making tax time easier though.
With the print sign industry alone projected to reach $10.84 billion by 2026, there’s too much at stake for casual bookkeeping. Real-time financial awareness lets you know what’s selling, who is paying on time or slowly, and how much money you’re actually making versus just how much you’re bringing in.
What to do instead: Keep your bookkeeping up to date, either with bookkeeping software or by outsourcing to a bookkeeper. Then set aside at least one hour a week to review your key numbers. Start with cash on hand, pending invoices, and upcoming expenses. This habit alone can help you spot cash flow issues before they become crises.
And think about leveling up your financial systems as soon as it is feasible. “(Business owners) need a competent controller to help them with cost accounting,” Clippinger recommends. “They also need an ERP software system to make their life easier.” Enterprise resource software (ERP) can help take your business finances to the next level.
- The “Emergency Credit Card Shuffle”
Whether it’s emergency equipment repairs, last-minute staffing challenges, or rising material costs, there are always going to be unexpected costs. While credit cards can be an option for fixing last-minute cash flow gaps, you have to choose the right business credit card or your business can wind up in a dangerous cycle of high-interest debt that eats into already tight profit margins.
What to do instead: Consider a low-rate or 0% intro APR business credit card to keep interest costs down. Also set a goal of establishing an emergency fund covering 3-6 months of expenses. It takes time, but setting aside a small percentage of sales early in the year means your business can have a healthy balance by year-end.
- The “Maybe Next Quarter” Equipment Investment Plan
In an industry where digital signage is expected to grow at 6.6% annually through 2030, according to Grandview Research, postponing strategic technology investments can leave you behind. However, making panic purchases when equipment fails is equally dangerous.
What to do instead: Create a technology and equipment replacement schedule that aligns with your cash flow cycles. Factor in both traditional busy seasons and the emerging opportunities. Look into equipment leasing to manage cash flow and keep equipment up to date.
- The “One-Person Financial Show”
If you’re like a lot of sign shop owners, you pride yourself on your skills being able to handle anything yourself. But your business won’t grow if it’s completely dependent on you. (It won’t be easy to take a vacation or sell it someday, either.)
Levi King, a serial entrepreneur who started with a sign repair and installation business in 2006, explains how he came to this realization in his sign business in an article for Inc.: “Like many others before me, I had naively assumed my job would primarily consist of engaging in a craft. In my case, that craft was fixing and repairing electric signs. There would come a day when the task of actually working with the signs themselves would fall to people I hired, while I labored behind the scenes to keep the whole operation running.”
Plus, with the industry becoming more complex, from sustainable materials to AI-driven displays, trying to manage all financial decisions solo is increasingly risky.
What to do instead: Build a team and learn to work on your business, not just in your business. That includes a financial advisory team. Start with a bookkeeper who understands manufacturing costs and an accountant familiar with your type of business. Consider working with a business mentor or coach to help you with strategic financial decisions. Both SCORE and Small Business Development Centers offer free business mentoring.
- The “Hope Is Not a Strategy” Pricing Model
When competition heats up, it can be tempting to cut prices without an understanding of the true cost of those decisions. You get the job but profits suffer.
“The #1 mistake owners make is that they do not cost out every project that they take on,” says Clippinger. “As an owner you need to know what projects are money makers and what projects are losers. Do not take the losing project on, or raise the price until it makes sense to take on that style of work,” he advises.
This habit can quickly sink a business as the industry faces continued materials and labor cost pressures.
Another mistake Clippinger says is common is viewing the entire shop as one category.
“You have to look at each department as a separate company. What are the consumables? How are they doing when it comes to beating the estimate? Each department should be broken down to see who is achieving the goal,” he recommends.
This habit can quickly sink a business as the industry faces continued materials and labor cost pressures.
What to do instead: Implement a quarterly pricing review that takes into account:
- Current material costs and trends
- Labor rates in your market
- Equipment depreciation
- Overhead costs
- Market positioning
Breaking Up Is Hard, But Necessary
Habits might feel comfortable, like an old relationship, but if they’re holding your business back it’s time to say goodbye.
The sign industry is evolving rapidly, with digital transformation, sustainability demands, and changing customer expectations creating both challenges and opportunities.
Start by picking one habit to break this quarter. Remember, in an industry where recruiting and retaining staff is one of the biggest challenges, having strong financial habits isn’t just about profits; it’s about building a sustainable business that can attract the best customers and employees.
Your Next Steps:
- Choose your first “break-up” habit from the list
- Set up a daily or weekly financial review routine
- Start building your emergency fund with regular contributions
- Schedule a quarterly pricing review for 2025
- Begin planning your equipment and technology needs
Financial success in any business isn’t just about working harder; it’s about working smarter with your money. Make 2025 the year you break up with bad financial habits and embrace new habits and systems that will help your business thrive in an evolving market.
Gerri Detweiler has several decades of experience guiding individuals through the confusing world of credit, and has earned a reputation as a reliable and independent source on personal and small business credit. Today, Gerri serves as Education Consultant for Nav, a financial health platform that helps small businesses owners build and manage their business and personal credit, track cash flow patterns, and understand their financing options before they apply.
