Growing a service-based business isn’t just about increasing revenue—it’s about managing cash flow intelligently. One of the most effective financial principles founders can adopt is the 10% rule.
The 10% rule means allocating at least ten percent of your monthly revenue toward growth-focused initiatives such as marketing, hiring, automation, or process improvements. While this may sound simple, many service businesses fail to follow it due to unclear financial data or reactive decision-making.
Without accurate, up-to-date financials, founders often overspend during high-revenue months and pull back during slower periods. This creates instability and slows long-term growth. Automated accounting systems solve this by providing real-time visibility into cash flow, margins, and operating expenses.
When your books are consistently closed and reliable, budgeting becomes proactive instead of reactive. You can confidently reinvest in growth without jeopardizing financial stability. The 10% rule works best when supported by accurate data, automation, and expert oversight.
At Open Ledger Accounting Group, we help service businesses implement systems that make disciplined budgeting simple, repeatable, and scalable.
