As we close out National Small Business Week you may be overwhelmed with all the content and ideas coming your way. However, don’t be distracted. There is a topic that always needs attention. A topic that influences your bottom line and impacts your ability to successfully grow.
A topic that historically women have been taught to shy away from or are intimidated by conversations regarding it. But not at Her Corner… So, let’s talk MONEY!
S&P Global conducts an annual survey in which they measure the level of financial literacy across the world, in other words, the knowledge, and skills to make financial decisions. They find that only 30% of women worldwide are financially literate. So how do we switch the narrative for ourselves and future generations? After speaking to small business bankers and venture capitalists in the area, here are a few suggestions:
Manage finances and credit frequently and consistently. Know your numbers! Save regularly, track your cash flow and make a list of financial goals. Before making a move, ask how quickly it helps you go towards or away from your goals. This will increase confidence in your decision-making and provide a great foundation. A well-rounded picture can take you far; it’s not always about the largest bank balance.
Offense – Get it before you need it. Whether it’s to cover payroll, purchase a location or expand a product line, you need to make a plan for how you will get there and secure funding prior to the deal closing date or an emergency situation occurs. Build a relationship with a business banker that can be your capital advocate with underwriters, not just a branch representative who manages routine banking operations. One example is having a line of credit that builds business credit and you don’t have to use it until you need it… but you will have it!
Negotiate – Sounds simple but it seems although we negotiate on other fronts all day, somehow we don’t use the same vigor when it comes to money. No matter if it’s pricing for supplies, higher rates for services, or loan terms, don’t be afraid to challenge what’s offered to you and make the best arrangement for your business.
Explore your options. Information is important so research often. One good thing Covid spread is an influx of programs to provide more capital with easier access. Know that traditional lenders are typically looking for 2 >years in business, good standing, 680 + credit score (Focus on Experian, not just your Equifax credit rating). However, products and opportunities are plentiful and rapidly changing to benefit small business owners. So, ask around and don’t miss the boat.
You are prepared! Think outside the box for ways to grow and secure capital for your business
You got this. So let’s get it done!
*Capital is one of the greatest factors impacting your business. If you need more assistance with this topic, stay tuned for future workshops and contact Her Corner to discuss coaching options or templates to help you track your finances.