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Jul 24, 2018
Michele Markey, CEO of SkillPath
Making your dream of business ownership a reality means understanding the money. And money fears are the most significant reasons given when I ask someone why they haven’t pursued their business idea.
If the terms financials, startup costs, revenues, balance sheets, budgets, etc., cause you anxiety, you’re not alone. For most women considering the launch of their own business, their financial concerns fall into three areas:
The best way to alleviate any fear is to learn more about the basics of accounting and finance. Approach this learning process as another step along your journey to entrepreneurial success.
Additionally, an entrepreneur who takes the time to gain a basic understanding of business financials has a competitive edge. Using the right financial tools and knowing what the numbers are telling you enables you to make strategic business decisions and drive the success of your business.
Now, let’s work through the three concerns one at a time.
A reliable stream of money coming in is critical for most of us. Letting go of that sense of stability can be frightening and frankly a no-go for many. Helping you “bridge” the gap includes some careful planning including these considerations:
All businesses need some startup capital. Estimate your startup expenses by considering these things:
Many entrepreneurs find ways of launching their businesses with money from their own savings or through loans from friends and family. In their book A Rising Tide, Financing Strategies for Women Owned Firms, Susan Coleman and Alicia Robb offer this advice:
Alternately, if you choose to pursue a bank loan, remember that lenders are looking for good investments and to make sure the loan and interest will be repaid. Turn a possible “no” into a “yes” by being prepared with your credit history, personal financial information and a well-thought-through business plan. Also, because banks vary widely, do your homework and shop around for the best terms.
As you move forward, create a separate business account to ensure there is no co-mingling of personal and business funds.
You must be financially conversational to succeed as a business owner. The three main business financial statements are the balance sheet, income statement and cash flow statement. Here we’ll take a cursory look, but I strongly encourage you to find a book or course to become competent with them.
If you aren’t confident in your business finance knowledge, commit to learning because understanding financial statements is critical to the success of your business. Used together, they can guide you, allowing you to make sound business decisions.
This article is the sixth in a series to help women entrepreneurs like you look at what’s keeping you from moving forward, overcome doubts and understand the fundamentals and the mindset needed to help make you successful. They are not designed to help you build your financials or create your marketing plan, but rather to prod you to think bigger … and begin thinking with the mindset of an entrepreneur. They will appear on our blog: https://insightsnationalseminarstraining.com/ and in our free monthly professional women’s newsletter which you can subscribe to: http://www.nationalseminarstraining.com/womenslink/index.cfm
Michele Markey
CEO of SkillPath
Michele Markey is the CEO of SkillPath. A leader in the learning and development industry since 1989, SkillPath delivers more than 16,000 training sessions each year and has enriched the professional and personal lives of more than 10 million individuals worldwide.
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