Many people have the goal of running their own business one day. Some people take that risk building multinational empires, while other business owners prefer their empire small, perhaps with one brick and mortar location. No matter what kind of business you run, you likely have a certain mindset about work, developing skills, the conveyer belt of mainstream education, and the hamster wheel that is salaried employment to fuel rampant consumerism. It’s a worldview that sees the bigger picture and seeks long term, personal fulfilment over instant gratification. 

While many business owners have honed a craft and made their capitalistic dreams come true (hi, Bobby Axelrod), some haven’t built strong financial foundations to weather economic downturns or remain nimble in the face of government overreach. This problem can be addressed through understanding and applying timeless money principles. These principles apply whether a business is a Fortune 500 company, a small bricks and mortar business, a sole trader, or a person managing their personal finances. For small businesses, in particular, who often have more difficulty accessing capital than large businesses, ₿itcoin is the solution to many financial challenges.

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In this article, we outline why Bitcoin is better for small businesses, how businesses can begin adding Bitcoin to their portfolio, and how people can apply the financial principles of large companies to their finances.

How can a Business add Bitcoin to its Books?

MicroStrategy, an analytics and business intelligence company, headed by CEO Michael Saylor (a long-time Bitcoiner), is one of the largest holders of Bitcoin. At the time of writing, MicroStrategy holds 125,051 Bitcoin, which it bought for a total of USD3.8 billion (an average of USD30,200 per Bitcoin). Currently, the company has over 15,000 Bitcoin pledged as collateral, leaving 110,000 available to generate yield or leverage. These are big numbers, but it doesn’t mean Bitcoin can’t be part of your business’s financial strategy, especially when you’re implementing timeless money principles.  

Timeless Money Principles for all Businesses 

There are timeless money principles that apply to businesses to keep their cash flow strong while securing a stable financial future. These principles are as follows:

  1. Hold six to 12 months of operating expenses in liquid cash. For a business, this is your cash reserve, and it shouldn’t be put at risk. Similarly, for individuals, this may be known as your “FU fund”, allowing you the financial freedom to walk away from jobs, people or situations that aren’t serving you.
  1. Keep your debt-to-equity ratio below 1.5 and debt-to-income ratio (DTI) below 20%, ideally below 10%. Even if a bank or other financier can offer you more, it doesn’t mean you should take it. Focus on cash flow and don’t let debt become a burden.
  1. Implement the profit first formula. Every time you make a sale, transfer a pre-determined percentage as profit to a separate account. Your rule of thumb becomes sales – profit = expenses. This formula can feel ruthless if your overheads are high, but it’s a game-changer for ensuring your business is operating within its means. The best bit? You begin to accumulate those cash reserves for step one, or if you’ve done that already, you can expand your asset base by buying Bitcoin. Mr Saylor would be proud. 
  1. Increase your revenue each year. Continual revenue growth of at least 10% year-on-year will help you cover inflation, at a minimum, while potentially giving you more cash flow to keep growing your cash reserves and assets.
  1. Have a 100+ year time horizon. You may already have an exit plan, but you need to set up and run your business with a long time horizon in mind. Having a long-term approach shifts you to the mindset of empire and legacy building. For example, Terry Peabody, the owner of Craggy Range wine in New Zealand, established a 1,000-year trust to ensure he leaves a legacy for future generations as the winery can’t be sold.
  1. Dedicate 10% of your revenue to research and development. Large publicly-traded companies have significant R&D programs. Not only does it provide a space to test new ideas and learn, but it also keeps businesses at the forefront of industry developments. Your business may not be a multinational conglomerate, but that doesn’t mean you can’t invest 10% of your revenue to test new ideas. The same principle applies to investing 10% of your income in expanding your mind and upskilling.
  1. Put your profit to work. Remember the Profit First Formula mentioned in principle three above? While it’s essential to have cash reserves to cover your expenses in quiet periods, it’s also important that you invest your profit into assets that will be a good store of value and generate income. This is where buying Bitcoin comes in. You could allocate some of your profit to accumulating Bitcoin. As you accumulate more, you can use it as collateral to access more capital. Just make sure you speak with your advisor for tailored advice before making big financial decisions.
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Address Immediate and Long-Term Cash Flow Challenges by adopting a Bitcoin Standard

Bitcoin fixes the latent problems in the fiat currency system. This is good news for businesses, especially those that have seen their revenue crippled over the last two years. There are two key financial challenges that small businesses face:

  • Tight cash flow 
  • Access to working capital.

Boosting business cash flow with Bitcoin

Late payments are one of the common causes of tight cash flow. By accepting Bitcoin payments, you can get paid instantly with minimal transaction fees. Further, on a Bitcoin standard, you don’t need to worry about inflation crippling your purchasing power or the purchasing power of your customers.

Accepting Bitcoin payments means there’s no need for third-party involvement in payments, and your funds are no longer under the jurisdiction of your bank. Instead, payments are made directly to your Bitcoin wallet – it’s important to remember that once transactions are complete, they cannot be reversed. This can make returns and refunds tricky, but it can also deter problem customers and the challenges of chargebacks. And for those customers who transact with your business, they’ll enjoy stronger security and privacy by using Bitcoin. Finally, with Bitcoin, cross-border transitions are processed quickly at a fraction of the cost of legacy systems.

Bitcoin can democratize access to working capital

Accessing working capital through debt facilities is often difficult for small businesses, especially those that don’t have an abundance of personal assets to use as collateral. While it’s still in its infancy, globally, there’s the potential for Bitcoin to be collateral to access business finance. And as the price of Bitcoin grows, so does your borrowing capacity. By accumulating Bitcoin with a long time horizon, businesses can use it to access the capital they need without parting with equity. 

Apply Business Finance Principles to your Finances for Wealth Mastery

Speaking to some fellow sat stackers reveals that people are buying Bitcoin to address similar financial challenges that businesses face, albeit on a smaller scale. After all, being in the business of You is essential to creating a life of fulfillment. By combining stacking sats with the timeless money principles above, you’ll be on the path to wealth mastery. 

One sat stacker who holds around 20% of their liquidity in Bitcoin said they’re hodling to, “Support the creation of a new, decentralised financial system for all; one that fundamentally represents freedom and free-market trade”. Similarly, a Bitcoin maxi who is all in on Bitcoin says they hodl because, “[Bitcoin] is the hardest money ever created. The alternatives are gold [and] silver, but they appear to be failing as an inflation hedge.”

Everyone’s ideal life looks different but understanding what time and financial freedom mean for you, doing the numbers, and setting up your finances to live well now while saving for the future is a common objective for many people. Stacking sats is a great step on this journey. 

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Focus on the Long Term. Save in Bitcoin.

Bitcoin offers business owners an exciting opportunity to take charge of their financial future. You gain access to an asset to help address short-term challenges such as tight cash flow while establishing the foundations to take advantage of long-term growth opportunities. Whether you’re managing a large balance sheet or you’re the owner of a small business, accumulating Bitcoin can be an effective hedge against the instability of fiat currency while providing privacy and security to you and your customers.


Do you want to learn more about Bitcoin and strengthen your business’s financial foundations? Amber makes it easy for you to start sacking sats in minutes. Check out our Guide to Investing with Bitcoin and Bitcoin glossary. And if you’re ready to get started, download Amber to make your first Bitcoin purchase in under 90 seconds.

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