How to Price Yourself in the Freelance Market
It’s a balancing act.
Photo: Christina Jones Photography
Unless you’re positive you’re going to win the Powerball (which, may the grace of good fortune be on your side), you are going to have to hustle this year. That means knowing how to price yourself in the freelance market, which is, unfortunately, as tricky as you think it is.
It’s a balancing act. Aim too high, and the client might offer the job to someone else. Price yourself too low, and you’ll end up resenting the high workload and low payout. Read on for a few tips on how to know your worth and how to navigate tricky money situations with clients.
1. Don't suggest an hourly rate.
Think of your work as value-based. If you are helping a brand grow its online presence, you shouldn't price yourself based on the amount of time you are going to spend on the job. You should price yourself based on the value you are going to add and your level of expertise. The better you get at something, the faster you work (usually), but that doesn't mean you shouldn't be paid for your skill level.
2. Dealing with the "we don't have a big budget," pickle.
It might be true, it might not be, but when a client says this to you it's often a red flag that they aren't going to want to pay. It's also a way to undermine your confidence from the gate. Telling you there is no budget will make you question what you're worth—don't let it. If you have a set rate, stick to it, and if they can't pay that, then it's up to you to decide if the ends justify the means. If you think it's a relationship that will pay in the long run, that's a decision only you can make.
3. Compare and contrast, but don't undersell yourself based on the market.
Look into what other people are being offered for the same service, but if you think it's too low for you, don't fall to market pressure. A simple way to find your number is to divide the high-average yearly salary of someone in your position who works full time by the number of months you'll be collaborating with a client. You want to start on the high end because most of the time you will get a counter-offer.
4. Quote yourself confidently.
Don't be afraid of that big number. Looking at it as a whole can seem intimidating, but sending a confident proposal that shows a client that you believe in your worth and your work, may instill the same confidence in them.
5. Offer your services in tiers.
Be explicit about what services you can provide for different prices. The more specific you can be about deliverables for price points, the more likely a client is to sign on. Tiers also give you wiggle room for negotiation. For example, if the client is into "tier 2" with one additional service you're offering in "tier 1," you can come back and say, "I'm willing to add in X service for X extra."
6. Asking point-blank if there is a budget.
If you don't know where to start, you can put the initial price point on the potential client. There's really only one way to do this: directly. "How much are you willing to spend?" will send the wrong message. Asking if there is a budget, will not.
7. There is no ax+b=c formula.
There’s no right answer to price yourself. At the end of the day, everyone has had different kinds of experience put on their résumé, has different skills, and all have worked for different rates in the industry. If you’re confident in your price, have compared your rate based on average market pricing, and have considered all of your skills, experience, and value, you’ll be able to come up with a rate that will make sense to you. If it doesn’t make sense to a potential client, oh well. Like Tinder and Bumble, you’ll eventually find a perfect match that will understand your self-worth and value.
Love this story? Pin the below graphic to your Pinterest board.
This story was originally published on February 28, 2019, and has since been updated.
MORE ON THE BLOG
Bills, Bills, Bills: How to Stop Procrastinating and Organize Your Money
Get your finances in check.
Photo: Anna Shvets from Pexels
Gradually making the transition from side hustler to full-time self-employed freelancer is a great plan to be sure that you’re able to support yourself with your new business. That said, it can often lead to a bit of a messy overlap between personal and business funds.
You may keep pushing off getting organized until “tomorrow” and let the task of figuring it out, fall to the bottom of your to-do list. That was my story until I realized that I was losing money because of missing receipts and not planning for tax deadlines.
Follow my four steps below to make getting organized easier, painless, and dare I say it, maybe even a little fun. Let’s get started!
Step 1: Open a separate bank account for your business ASAP.
Is this something that you legally need to do for your business? Maybe. Is this something that you financially need to do for your business? Absolutely.
Even if you’re starting out as a sole proprietor, which is the default structure for anyone who earns income from self-employment, you should set up a separate bank account. Why? Because even if that’s the only thing that you do to get your money organized, you’ll be miles ahead of everyone else in the organization game. You won’t need to sift through a bunch of personal transactions to find business deductions and you won’t lose precious time looking through all of those same personal transactions to see if your client has paid you.
Don’t overcomplicate your business or waste any more time looking at a hodgepodge of transactions, hoping that you’re not missing something. Take 15 minutes to set up a separate account and you’ll be one big step closer to organized money management (congratulations!).
Step 2: Create a list of deductions you can take.
My mom is also a CPA, but unlike me, she actually does taxes for a living. She’s constantly sending me little reminders about deductions I can take because I often don’t catch everything. It’s awesome, but since she’s not with me every day to keep me on track, I’ve created a list of things I can deduct to make sure I’m not missing anything. I keep this list taped to the outside of a folder and store my receipts in there until I can get them entered into my bookkeeping system.
Everyone will have different expenses, but a good list to get started with is:
• Web hosting
• Vehicle mileage
• Work travel
• Courses, seminars, licensing, business-related books
• Shipping, packaging
• Office supplies and equipment
• Health insurance premiums
Step 3: Know what tax forms you need to file, and when.
During my first year in business, I wasn’t too concerned about filing my taxes because I had made no money. Well, it felt like no money. But technically in the eyes of the IRS, it was enough that I needed to file and pay quarterly estimated tax payments.
I think most people have the same cavalier attitude that I did because they don’t know the IRS rules and it’s just something they feel like they can take care of later. I can tell you from personal experience that those first few months of starting a business will fly by and you’ll be left scrambling the night before filing deadlines if you don’t pay attention to some key forms and dates.
To get this started here is some basic information for sole proprietors:
• Who has to file? Generally, anyone who has net earnings from self-employment of $400 or more needs to report this income at the end of the year. And anyone who is expected to owe more than $1,000 in taxes at the end of the year needs to make quarterly estimated income tax payments.
• What form to file? Most people start their business as a sole proprietor, and the forms that you need to file at the end of the year are Schedule C or Schedule C-EZ (profit and loss from business) and Schedule SE (self-employment tax).
• When to file quarterly estimated tax payments? If you’re rational, you would probably think these payments would be made quarterly. Well the IRS throws in just a little change-up, so your payments are actually due on an odd schedule. The non-quarterly, quarterly schedule that they’ve come up with is:
Jan 1 - March 31: estimated payment due by April 15th
April 1 - May 31: estimated payment due by June 15th
June 1 - August 31: estimated payment due by September 15th
September 1 - December 31: estimated payment due by January 15
Step 4: Set a weekly money date.
This won’t be your most fun date, but it’ll probably your most profitable. Set a time to check in every week and make sure that your money is on track. If you do this weekly, it’ll become so easy and quick. I save my money date for Friday afternoons when I’m at my least productive. Once I have this done, I know I’ve earned a glass of wine and a good weekend.
Some things that I do weekly are:
• Send any invoices that are due
• Look at who hasn’t paid me and send reminders (+ cash any checks!)
• Pay any outstanding bills
• Pay myself my weekly salary/stipend
Bonus step: Set up a bookkeeping system.
Oh, look at you, overachiever! You’ve got this organization thing down and you want a bonus step? You can feel even more legit and in control of your money by setting up an easy bookkeeping system. This doesn’t have to take a long time and it doesn’t need to cost a lot. There is a range of easy to use programs out there (some are even free!) that are better than that excel sheet you’re using. If you don’t need many bells and whistles but are looking for something free, try Wave. It’s pretty simple to use, and it’s free.
Now, set aside 30 minutes a week to work through this list and start feeling in control of the business you are creating.
About the Author: Erica Gellerman is a small business strategy and finance expert who has a passion for helping creative entrepreneurs start, launch, and grow their business. After getting her CPA and MBA and spending a decade working at some of the best finance and marketing companies in the world, she started her own small business. Realizing that there weren’t enough resources dedicated to helping solopreneurs build profitable, small businesses, she set out to share everything she’s learned through her site. Follow her on Twitter @ericagellerman.
Love this story? Pin the below graphic to your Pinterest board.
This post was originally published on March 2, 2019, and has since been updated.
MORE ON THE BLOG
An Intro to Using Credit Cards for Your Business
Put that plastic to good use.
Photo: Anna Shvets from Pexels
We all know that credit cards can wreak havoc on budgeting, but when managed correctly, they can actually benefit your finances and help you organize your business. Building good credit can help you when it comes to a variety of things such as buying or leasing a car, starting a business, and renting or buying office space. You can even score some really beneficial perks, depending on what card you choose! With that in mind, read on for four tips on using credit cards for your business.
Step 1: Determine which card is best for you.
Many cards have benefits like cashback, travel points, or money to spend at retail locations. Do your research and see what option is best for your lifestyle.
Here are some questions to ask yourself:
Do you fly on a particular airline often?
Do you shop at a particular store often or have to make bulk purchases for your business?
Do you prefer straight cashback?
If you are someone who frequently flies on one airline, perhaps getting one of their credit cards would be most beneficial. If you don’t fly with one airline in particular but want to get travel points you can use everywhere, consider the Chase Sapphire Reserve or Venture Card from Capital One.
If you shop at one store a lot, get one of their cards. Amazon, Target, and Nordstrom in particular have fantastic credit options that give you a percentage off and/or points towards money to spend in the store with every purchase. If you have to make bulk purchases for business, Costco is a great option because you get a credit card, Costco membership, and store credit points bundled into one, creating even more bang for your buck.
If you don’t travel often or frequent any store in particular, cashback is a safe bet. This can be deposited in either your checking or savings account and is an easy way to increase your savings. Maybe challenge yourself to put all of the cashback you get directly into your savings account!
The best way to go about choosing a card is to educate yourself. There are websites completely devoted to comparing credit cards to help you make your decision. Don’t be afraid to ask around to get information on the different options out there, and choose what works best for you. See what your friends, family, or peers use or like.
Step 2: Maintain consistency with your expenses.
A great way to maintain consistency with your expenses is to put a few of your recurring charges on autopay. I suggest picking bills like your phone, cable and/or internet, utilities, and monthly care insurance payments on autopay with your credit card.
These types of expenses often don’t fluctuate much (if at all), which makes them a great option to put on your credit card. If you consistently get the same monthly charge, you’ll know what to expect. A lot of cards now will actually notify you if a consistent monthly charge changes, which is really helpful to keep tabs on your expenses.
If you do choose to do this, just be sure to pay your card on time! Set a monthly reminder on your phone or email calendar a few days ahead of time to ensure that you always get your payments in and allow for processing times.
Step 3: Make tax season easier.
Believe it or not, using a credit card can make your tax preparation so much easier! As an entrepreneur (especially if you’re a solopreneur), it can be difficult to navigate expenses and determine what you can write off and how to pay for different things. The easiest way to separate things out is to get a credit card that you use just for business. It doesn’t necessarily have to be a business credit card, but it should be a credit card that you only use for business purchases. This way you can easily differentiate business purchases from personal purchases.
This next piece of info is what will really save you during tax season: Your annual summary. If you do a good job of only using your business credit card for business purchases, your annual card summary will make calculating your expenses way easier. Your annual summary breaks all of your expenses down by category, and depending on your credit card, will even include a list of purchases within each category. This way, at the end of the year, you can just look at your annual summary and note what you spent on medical, gas/auto, advertising, food/dining, etc.
A business-only credit card can be a huge benefit to your finances as an entrepreneur. Have a particular card you love? Share it in the comments below!
About the Author: A native San Franciscan, Michele Lando is a Certified Professional Resume Writer and founder of writestylesonline.com. She has a passion for helping others present the best version of themselves, both on paper and in person, and works to polish an individual’s application package and personal style. Aiming to help create a perfect personal branding package, Write Styles presents tips to enhance your resume, style, and boost your confidence.
This story was originally published on April 13, 2019, and has since been updated.
Love this story? Pin the below graphic to your Pinterest board.
MORE ON THE BLOG
From Pennies to Profit: How 26 Founders Bootstrapped Their Biz and Came Out on Top
“Dollar by dollar I saved enough money to cover my initial cost.”
One question we’re repeatedly asked by new founders at C&C is: Do I bootstrap or raise? Well, in our new series, From Pennies to Profit we set out to answer that question by asking self-funded founders how they bootstrapped their biz, from how long they worked full-time while building it to how much they saved before they leaped, and everything in between. Ready, set, launch!
Of course, however, you decide to fund your business is entirely up to you, and is really dependent on the type of brand you’re launching and what your business goals are. But if there’s one thing we like to do at Create & Cultivate, it’s to provide you with all the information you need to make an educated decision, whatever the end result may be.
When you take a quick look at the statistics, though, it’s easy to see why more women are strapping on their boots. Out of the $85 Billion in VC funding from 2017, only 2.2% went to female founders, under 1% went to Women of Color, and Black women-led startups got even less.
So, we reached out to 26 founders to find out how they bootstrapped their biz, why they chose to self-fund over raise (many told us they didn’t have a choice!), and their best financial advice for new entrepreneurs looking to launch a brand.
Camille Fields, Founder, Camille Fields-Restorative Skin Therapy
On bootstrapping over raising…
I always knew that my ultimate goal was to have my own skincare practice. After working in a day spa for 12 years, I felt it was time to venture out on my own.
On the bootstrapping process…
I used my own personal savings and started very small(and by small—I did not have one single client when I began but through some very creative marketing strategies, I gradually and slowly built a clientele. It didn't happen overnight and it was extremely frustrating at times, but I knew if I stayed the course and maintained the passion I have for my career, I would eventually see my dream come to fruition.
Fortunately in my profession, you can begin with a smaller budget and increase it as you go. I liked the idea of starting a business using my own finances, but depending on your line of work and the scope of your vision, that may not always be feasible.
On where founders should focus their financial energy…
For me and I assume for all business owners, it's getting to know who your ideal client/customer is and what their needs are. Once you can identify who and what that is, you can use a laser-like focus on the best areas to expend your financial energy. Otherwise, you may find yourself spending money in areas that are not fully utilized.
On the biggest money lesson…
Research, research, research, and more research on where you want to spend your hard earn dollars. Really invest in areas that speak both to your level of integrity and where you will see an ROI, even if the upfront costs are more.
On her #1 piece of financial advice…
Start small, build slow, and never lose sight of your long-term goals. The sky really is the limit!
Dana Jackson, Founder, Beneath Your Mask
On bootstrapping over raising…
I didn’t want to give up a piece of my company so early on. I also didn’t want to take money without the guidance. Whenever I do get funding, I’m not looking for just cash. I want the expertise as well.
On the bootstrapping process…
Prior to launching Beneath Your Mask, I worked as an entertainment business manager. The last two years of my career in business management, I was feeling burned out and unfulfilled. I started saving every dollar I made because I no longer wanted to dedicate 20 hours/day to someone else’s dreams. One of the main challenges I faced was not realizing how much money I’d actually need, and I ran through my cash reserve pretty fast and had to use a lot of my personal and business credit.
While you can scale much faster with funding, the benefit of bootstrapping is you’re forced to learn every aspect of your business because you can’t afford to hire someone to do every little thing at first. When you do go to hire someone, you know exactly what they should be doing because you’ve already had to do it yourself.
On where founders should focus their financial energy…
Driving top-line revenue through marketing. That’s important because it allows you to hire strategically and build the proper team. The proper team frees you up to continue to grow your business, brand and community. Increased revenue and cash flow also allow you to increase your purchasing power and reduce cost of goods by purchasing in larger volumes.
On the biggest money lesson…
The importance of margins as a CPG (consumer packaged goods) brand, especially a beauty brand that’s in retail. It’s really important to factor in all your costs into your price point and allow room for wholesale margins, sampling, store support, gratis, press and influencer kits, and shipping. Those costs really add up, and if not priced properly, you can easily lose money in retail. Also, negotiate as much as you can with your suppliers. It never hurts to ask!
On her #1 piece of financial advice…
As a small business, I rarely invest in any services or consultants that I don’t see an immediate ROI on. Don’t run out hiring every person that reaches out to you with promises of what they can do for your business. No one is going to come in and be a miracle worker for your brand, it takes time to grow and gain traction. So if you can’t afford to hire someone for six months without a return on that investment, you can’t afford them.
Lesley Thornton, Founder, KLUR
On bootstrapping over raising…
I didn’t have a choice. It's very well known that minorities don’t have access to loans and capital.
On the bootstrapping process…
Dollar by dollar I saved enough money to cover my initial cost. When I realized it would require more funds to employ a full-time chemist, I listed my apartment on Airbnb and was able to generate a second stream of income which I then invested in my company.
On the challenges she faced…
When I launched KLUR the message of economic and sustainable inclusion fell on deaf ears. I couldn't get traction. Not a single response to the product nor the important conversation.
On whether she’d recommend bootstrapping to other entrepreneurs…
I can’t say that what I’ve done can be replicated. Entrepreneurship is an individual journey, every person will have to decide what they are willing to risk. This is a part of the process.
On where founders should focus their financial energy…
Focusing your time, money, and energy into the best product possible—quality is essential.
On the biggest money lesson…
Don’t spend what you don’t have. It’s really that simple.
On her #1 piece of financial advice…
I’ve seen many entrepreneurs struggle, or fail because the operating cost exceeds the potential profits. Watching your numbers is key!
Sevetri M Wilson, CEO and Founder,
Resilia and Solid Ground Innovations (SGI)
On bootstrapping over raising…
I don't think there was this moment where I made a decision to bootstrap my company. It was more so the cards I had been dealt with. At the time, I knew I would have to build my company brick by brick as there were no financial resources available to me then. I knew I would have to be scrappy and win business in order to grow, so I did just that. Now that I have a bootstrapped company under my belt which was very successful (and have raised venture for a second company) there is one thing I can say that I know is true—bootstrapping gives you the freedom and flexibility in a way that raising capital or outside financing doesn't.
On the bootstrapping process…
SGI is a true bootstrapped company. I built it by overseeing services that I could accomplish as a sole owner. Once I had built enough clients I started hiring one team member at a time at first. My first hire was more of a generalist, but was sound when it came to logistics because let's be honest when you are bootstrapping your first hire should be someone that gets stuff done! The way we went about securing contracts is actually sub-contracting under larger companies. If there is one word of advice I can give it's you have to learn fast, and what better way to learn your field is by working (still as a business owner) with someone who has done what you are seeking to do at scale.
\I faced a number of challenges whether it was selling contracts as a woman, or a Black woman, or as a young person which to some can come off as inexperience, or as a person from the south, there was no shortage of challenges. I would recommend bootstrapping. As someone who has again bootstrapped their first company and now raised over $10M for a second company, I can't stress enough that you calculate what you want to give up. It may have taken me longer with bootstrapping but it also allowed me to invest the first $1M into my second company which has allowed me to own a significant share of the tech company I am building versus having been put in a position where I raising money under not so desirable conditions.
On where founders should focus their financial energy…
One mentor would always tell me one of the main reasons why businesses fail is that they grow too fast. So, I think focusing your financial energy on how do you grow as lean as possible is very important.
On the biggest money lesson…
One of the biggest money lessons I've learned since launching my business is that mistakes are costly, so surround yourself with advisors, and also it’s hard and very costly to manage people. So, spend the time recruiting and find the best to join you in your endeavor. I've spent quite a bit of time creating and cultivating an amazing team. It's worth it.
On her #1 piece of financial advice…
You're probably going to lose some money along the way, you have to not dwell on it long, and work to devise a plan to recoup it. But also know being in this seat means you are going to have to take risks and likely very often. Some of them will go well and others not so much. Breathe and get back out there.
Athena Hewett, Founder, Monastery
On bootstrapping over raising…
In all honesty I never really made any conscious decision about it, I just did what I had to do. I had the other side of the business (the spa) that was doing well and I was selling the product on a small level out of the spa. It just made sense to create a larger audience for the products by packaging the products and building a website. I was borrowing money from the spa to build up the product line.
On the bootstrapping process…
I was able to put both businesses under one umbrella and take a sizable loan for the spa. We had already been in business for over five years at that point and the business had a reasonable income, which helped a lot with the business loan. I used that loan solely for the product line. Sure it worked out for us, but we couldn't have done it without the other business. Maybe it wouldn't be for someone who is risk-averse. It's risky to put you and your family in massive debt for something other than a home but I never believed that it wouldn't work out.
On where founders should focus their financial energy…
At this point in the game, this would be a tough question for me to answer. There are just so many things that cost lots of money and they are all important. I made a lot of mistakes along the way but one thing that wasn't a mistake was hiring a business strategist. She was expensive but she laid out the business for me in a way that I would have never done. She came from the start-up world so she thought differently than I did. She organized everything for me. I wrote the original business plan but she expanded on it. She had much bigger plans and goals for Monastery than I originally had. It helped me a lot to see the business through her eyes and I realized that I would need a lot more money than I thought. We worked hard to pay off the first loan and then we got another loan, triple the size of the first.
On the biggest money lesson…
Don't ever try to skimp on things to save money. It just costs you more in the long run. Go for the quality right upfront.
On her #1 piece of financial advice…
Don't be attached to it. I've always had this attitude of money comes, money goes. I think that's helped a lot in building a business bootstrap style. If I was too attached to it I would never make the risky decisions that it takes to make the business successful. Just like the old saying goes "It takes money to make money." I don't gamble IRL but I guess I am a bit of a gambler when it comes to business
Toneisha Friday, Co-Founder, Blex Technologies
On bootstrapping over raising…
My partner and I were looking for a Black virtual therapist to help increase intimacy (amongst other things) and we weren’t finding what we needed. So, we decided to create a solution to this for people like us.
On the bootstrapping process…
We are self-funding this through our savings which has been built by working full-time. We are now thinking about how we can get our company valued for the potential of raising money because at the end of the day, we don’t want to completely deplete our savings. I would definitely recommend entrepreneurs to keep their full-time job until they are comfortable financially. It helps offset budget barriers and enables you to keep your debt low.
On where founders should focus their financial energy…
Focus on the ROI that comes with each of your expenditures. I think we can get caught up on Instagram and other social media platforms looking at what other businesses are doing and saying, “oh I need that.” But do you really? What is the value? Or if you do it, measure it so you can better understand the impact it had on your business and revenue. Otherwise, you end up spending money on frivolous things that don’t move the needle.
On the biggest money lesson…
Have a planning cycle. Many businesses have yearly planning where they map out their priorities, marketing strategies and overall goals and objectives. Having this planning cycle limits the last-minute scramble and enables you to easily budget your finances for how much certain things like design and development might cost.
On her #1 piece of financial advice…
Don’t forget about taxes, registrations, etc.!! So many people I know who own businesses forget about filing taxes or paying registration fees or submitting the proper sales tax forms, and all of those are critically important to keeping your business running. You can have a beautiful IG feed, but if the IRS hits you with a big bill, are you prepared to pay that and keep the ship afloat?
Arden Montgomery & Margaux Reaume, Sommeliers and Co-Founders, Argaux
On bootstrapping over raising…
We were lucky enough to have support right off the bat from friends and family. Their contributions were structured as loans, which has allowed us to maintain ownership rather than dilute it.
On the bootstrapping process…
We approached friends and family like we would a VC. Margaux and I built the business plan and pitched the concept. I might add that the business today is quite different structurally than it was on paper five years ago. Nonetheless, the business at its core remains unchanged. The most important thing we've learned from our approach to financing the business is the value of financial reporting and "innovative accounting." If I could give anyone starting a business one piece of advice, invest now in your books and the role of controller or CFO within your company.
On where founders should focus their financial energy…
As a business owner, you need information. When you have accurate information, you have the necessary tools to help you make smart decisions, and invest your time and energy strategically. Where is the cash flow coming in from? What revenue stream is generating the best profit margin? Spend your time there.
On the biggest money lesson…
Understanding where to invest the money funding your business and why. We have a capital intensive business model based on inventory alone. We have also chosen to invest in our people. It's so important to take hiring seriously, and understand the value of your team members. I would say take the time to understand WHAT you need to scale, and WHO you need to help grow your business. For us, it's all about the product and people.
On her #1 piece of financial advice…
When we started our business, we were laser-focused on sales and naively figured if we can keep selling and meeting our sales goals it would all work out. While meeting sales goals and selling your product is extremely vital to the success of your business, your business is only as powerful, sustainable, and lean as your accounting and financials are organized, accurate, and tended to.
Lauren Napier, Founder, Lauren Napier Beauty
On bootstrapping over raising…
I had no choice. Black women are under banked and disproportionally represented in the investor space. In fact, less than 1% of Black-owned business receive a traditional business loan in the first year of starting a business. And 2% of the SBA loans allocated to entrepreneurs are awarded to Black-women led business. I launched Lauren Napier Beauty with a tax refund and an American Express card. That’s why I launched a $5M initiative to support Black women-led businesses called Consider Something Better.
Consider Something Better is challenging corporations and conglomerates to honor the fiduciary responsibilities to communities by creating economic and racial equality; giving equal access to funding the next generation of Black female Founders. We are challenging corporate structures to join this mission but we fully embrace the support from all of our feminist allies who desire equality for their Black women entrepreneurial counterparts. Consider Something Better will deploy the funds directly back into this under funded Black women-led businesses, services and creatives in tiers. In the first seven days of launching Considersomethingbetter.com the organization received over 300 applications for grants, this only highlights the need for economic equality and change!
On the bootstrapping process…
I am a celebrity makeup artist so, while I was working on shows like Late Night with Jimmy Fallon, Saturday Night Live, and making movies I was also sitting on set researching materials and manufacturers and sending emails. This was very challenging and in the end very rewarding. I worked long TV/film hours, it was exhausting. I recommend doing the work so you know every aspect of your businesses operational needs. I also know that having monetary support would have made a huge impact on the first three years of Lauren Napier Beauty’s business and operation.
On where founders should focus their financial energy…
Operations and then marketing. If your supply chain is off the entire business is off. Delays create delays and delays create unhappy customers. In the end we are all providing a service or product to our customers and it’s important to deliver.
On the biggest money lesson…
Save it for later! Don’t hit the send button when you are tired. I accidentally doubled an order to my manufacturer and when I realized it, I was unable to cancel the PO. It all worked out because I received a massive order but that is rare and something I would not count on!
On her #1 piece of financial advice…
Reinvest in your business, save your money and know the ABC’s of business—accounting, bookkeeping, and (legal) counsel.
Sajani Amarasiri, Founder, Kola Goodies
On bootstrapping over raising…
Honestly, it just happened. It's what I saw growing up, and I also didn't know too many people in investing circles (which is a common, significant hurdle for immigrant founders, because our "friends and family rounds" and opportunities for introductions and networking in the VC world are incredibly sparse, which needs improvement). I knew for sure I didn't want to just sell an idea to an investor. I wanted to make sure it had a product-market fit, give myself time for product exploration, and then find the right people with an aligned mission. I also am in a stage with enough savings that I had this option to start with.
On the bootstrapping process…
We are 100% self-funded through savings; I have used a lot of my previous tech salary savings to help get me started. Bootstrapping is tough. It's challenging because as an entrepreneur you want to move and grow fast, but when you have limited resources, you need to be super mindful of where you are spending that money. You need to make tough choices like are you going to spend on marketing and PR right now, or are you going to pay yourself, or spend on new product development?
Another challenge in bootstrapping (that a lot of people don't realize) is that it means you literally need to grab your boots and go knock on every door yourself; you aren't going to be invited into rooms, you are breaking in and bringing your chair with you. It's also important to be mentally prepared for pre-launch when you're spending your personal money and there is no revenue coming in. But bootstrapping also gives you many opportunities. It means that at the beginning you are going to play multiple roles and really get to know your business inside and out; it forces you to think creatively and think harder on how you can make each dollar go further, and it allows you to build your company on your core values.
First, understand whether your business is venture fundable; VC route may not be the route for your business, so take advantage of alternative routes like crowdfunding, grants, or loans if applicable. I recommend doing what works for founders and their business. I know raising money, especially as a woman/POC, is hard too, so there is no easy way— just find what works for you. For some industries, such as hardware, it's impossible to bootstrap. But if you don't need much infrastructure investment, and have access to capital, go ahead and take advantage of it.
On where founders should focus their financial energy…
Spend the time and money to find your customer and create the best possible product for them. If you aren't reaching your customers, no matter how awesome your product is, no one is going to know about it. And if you are reaching a massive audience but don't have a unique, awesome product, then they aren't going to come back and buy again.
On the biggest money lesson…
I am still working on this, but learning to be patient—building a business takes time.
On her #1 piece of financial advice…
Focus on profitability and unit economics. Know your numbers in and out—this is the only way you'll know how to price your product and set growth plans. Money mindset matters. If you are an immigrant or didn't come from a privileged background, there's a lot to unlearn as you start your journey as a business owner. We tend to have a scarcity mindset, so we need to come from abundance and believe that yes, we deserve it too. As immigrants, we tend to dream within our means, but we need to dream bigger. If you think you're thinking and dreaming big right now, dream even bigger.
Allison McNamara, Founder, MARA
On bootstrapping over raising…
When I was ideating and creating MARA, it really started out as an (expensive) hobby. I didn’t set out to create a global brand, so I was very careful with my spending especially since the business is self-funded between myself and my dad. I was in a crossroads in my career in entertainment and had the urge to create something I felt was missing. We didn’t skimp out on formulation, ingredients, or testing; however, I was very conservative when it came to web design, marketing, photography, a (lack thereof) team. When I finished the product I knew I had created something really beautiful that would speak for itself.
On the bootstrapping process…
I would definitely recommend it to other founders if they have the means to do it—it gives you total creative control which is so important, especially in the early days of the brand when you’re just figuring out who you are. Most people don’t know this but I actually have two businesses – AMcNamara Inc (which is the one I work for) and MARA. I’ve had AMcNamara Inc since 2014, which handles all of my hosting, brand deals, writing, and content creation. This has allowed me to still have a full-time job employing myself for AMcNamara Inc while creating MARA, so I didn’t and still don’t take a penny personally from MARA, which creates double the work for me but it’s totally worth it.
In order to do this, you have to be incredibly focused and diligent with your time. My background in daily TV and production helped shape me into a very fast and focused worker. The main challenge for me is there literally is never not work to be done—there is always a piece of content I need to shoot, a story I need to write, a product I need to give feedback on, marketing copy that has to be tweaked but that’s what I live for. The biggest challenge is that I work at least six days a week.
On where founders should focus their financial energy…
It really depends on what business you are creating but I think your product—whether it’s beauty or tech or food, whatever—is where all of the financial energy needs to go. Great product rises to the top, even if the packaging is just okay. That being said packaging and marketing messaging should be your next big financial focus, if the product isn’t attractive and doesn’t speak to your customer, the discovery window will be a lot longer than if it was aesthetically pleasing.
On the biggest money lesson…
Everything is more expensive than you think it is. But, great risks = great rewards.
On her #1 piece of financial advice…
Do as much of the legwork yourself as you can. Use your friends and your network to bounce ideas off of, they are your greatest resource and usually, free. When you really sit down to brainstorm, you probably know more people then you think you do that can help you out—maybe your cousin is an aspiring photographer or your sister’s best friend just finished Journalism school, or your father’s friend knows someone who can help you with legal—don’t be scared to ask for help.
Jazmin Alvarez, Founder,
On bootstrapping over raising…
Honestly, it was the only option for me at the time. I didn’t feel comfortable taking out a loan and I had saved up enough money where I felt comfortable making that initial investment into my company.
On the bootstrapping process…
After working freelance off and on for about 10 years in fashion I was saving money for investment. Initially, that investment was going to be a downpayment to buy an apartment but I pivoted and decided to start a business instead. I used money from my savings account and budgeted roughly $10,000 to get started.
I've faced many challenges and still do, but the biggest ones have been limited financial and human capital. It’s the concept of needing money to make money but when you have limited finances, you are limited with what you can spend or who you can get to help you. I think that if you are in a position to be able to cover your personal fixed expenses and have enough money to live off of for 12 months or more, then bootstrapping is a great idea. On one end you have to be very lean in your operations but on the other end, you don't have the added stress of repaying a loan right away or having an investor taking control of your business when it’s still in its infancy.
When startups are just gearing up, the business is still quite malleable which can be a good thing when you have a clear vision but when you don’t and you have outside money/investors having a stake in your company, it can oftentimes derail your vision. I also think that when you bootstrap, it's a great learning opportunity. I never went to business school. No one ever taught me how to be an entrepreneur so I have the freedom to take things at my own pace and learn as I go because I’m the only one making all the decisions right now.
Ultimately how someone decides to fund their business is up to them, but I think that if your goal is to get venture capital, bootstrapping and showing organic growth and traction first will make your company much more valuable to an investor because they are able to see what you were able to build with limited resources.
On where founders should focus their financial energy…
That depends on what type of business you’re building. For me, since my company is e-commerce based, focusing my spending on a well-designed and functional website was my biggest expense/investment. I knew it was going to be the first impression I would be making to the world.
On the biggest money lesson…
To ask more questions! I could have saved myself so much money if only I knew the right questions to ask or what alternative buying options were with regard to product inventory. In the beginning, I was buying all my inventory wholesale. It wasn’t until months later I learned about the options of drop shipping and consignment where I wouldn’t haven't to put any cash upfront in order to sell the products on the website.
On her #1 piece of financial advice…
Be realistic and honest with yourself first about what you are building. Are you building a small business or a lifestyle brand? However, you answer that question can determine what and where you’ll need to invest. Also, be prepared to budget literally everything in your life. Unless you have great financial resources at your disposal, be prepared to adjust your way of living.
Evaluate everything that is coming in and out and get yourself a good financial planner/model to help you understand your cash flow. Cash is king! If numbers aren’t your thing, that’s okay, but find someone who can help you because if you do not have a good grasp on this, it could be at the detriment of what you're building. And when you are able to, pay yourself! Even if it's a salary of $1,000 a year that you set up with QuickBooks. Having the mentality that you are getting paid by your company will change the way you run and view your business.
On bootstrapping over raising…
My co-founder, Dr. Nancy Samolitis, and I first started to work on the business concept about a year before opening. We estimated our startup costs based on the three major areas we knew we'd need to spend the most money: build-out of the physical space, hiring, and inventory. After looking at our budget, we decided it would be best to self-fund as opposed to look for investors who would ultimately take a large amount of equity at that stage of the business. We were fortunate enough to have access to inexpensive debt and personal savings that allowed us to subsidize the rest. We negotiated terms with every vendor possible including our landlord for a longer "tenant improvement" period. All of these small steps allowed us to spend less while getting the company up and profitable!
On the bootstrapping process…
Bootstrapping a business is when an entrepreneur utilizes all or most of their existing resources to start a business or company. After detailing a budget for startup costs both my partner and I were able to look at what capital we had access to and decide whether or not we needed to bring on an outside investor.
We decided to utilize our relationship with the bank, took a small loan from a family member, and self-funded the rest. We looked at every possible area where we might be able to save while getting the business up and running (this includes building out the actual space on our own with the help of my husband, who is a developer/contractor). I will say that when we opened we had run through more cash than I initially wanted to, which definitely put us in a tight spot for the first six months of the business. Ultimately we were able to push through and were profitable nine months after opening.
There have certainly been times where I questioned whether it would have been easier/more beneficial to take on outside investor capital for equity from day one. I do think there is a lot you can do with the right financial partners, which is why we recently did our first raise for our upcoming product launch and brand expansion. Whether or not bootstrapping is right for you is completely case by case and will depend on what resources you have access to.
On where founders should focus their financial energy…
This is case-dependent based on your industry but I can say for our type of industry/business (which I consider to be self-care, services, retail) we don't make money without clients. In my opinion, financial energy should be reserved for marketing efforts and creating an incredible experience with an all-star team so that you can not only attract new clients but retain them.
On the biggest money lesson…
You have to spend money to make money, but that doesn't mean paying for things frivolously. Like every business, we had ebbs and flows with our financials in the early beginnings. We were forced to get creative with when and where we spend our money and focused a lot on "free" marketing—creating an incredible experience so that someone would tell another person about us. Word of mouth to this day has been the most effective form of marketing, and it's free!
On her #1 piece of financial advice…
Pay yourself a salary! I will happily put my business and team first and I went for a long time without a salary. I found that to be a really bad way for me to stay motivated. Being an entrepreneur is really hard and it's important to feel value from the work you're doing. Don't discredit yourself and make sure to build a salary into your initial budget, even if it's small, it will make all the difference in the world.
Taryn Dean, Transcendental Beauty Practitioner, Beauty Witch, and Founder, The Beauty Mage
On bootstrapping over raising…
From the outset with my business, I have always been protective of not giving away my sovereignty in exchange for dollars. Honestly, as a Black woman born and raised in America, I never considered that I had another choice then to bootstrap. I knew i wasn’t going to walk into a bank and get a loan and I didn’t have any relatives or friends to ask for startup costs.
I also grew up in a household where my parents were constantly robbing Peter to pay Paul in order to keep everything going, so my thought patterns still have an irrational aversion to debt. Though I am educated in economics and finance and understand the difference between good and bad debt, the thought of owing anyone anything makes me sick to my stomach. It took at least a year of unlearning and coaching from some black business women to shift my perspective toward accepting investments. The journey continues.
On the bootstrapping process…
I have been working as a lash artist for almost a decade and I have a loyal following. So piece by piece as I formulated the ideas for my business, I diverted money from frivolous spending to investing in myself. I also used financial apps like Digit to automatically save for me so that I didn’t have to think about it. Digit really allowed me to always have a stash of cash to pull from when I need resources.
Eventually, the seed began to germinate and my community started to sow small investments into ideas I had. Those small kernels kept me motivated to continue the work when I felt overwhelmed and made it easier and easier for me to feel comfortable with the financial choices I was making.
The constant challenge I think for most entrepreneurs is that you eventually hit a point where your dreams outsize your ability to physically produce money through your labor. So now I’m at a point that I need to think about hiring support staff and paying for my own studio and I don’t want to work myself to death in order to do that. So I need other options. And that is what lead me to consider crowdfunding.
No matter what, bootstrapping with always be limiting in some way. So while I may recommend bootstrapping to start a business, I don’t think it’s the way to build a brand with true recognition today. Burnout is all too real and Black entrepreneurs especially have to preserve their spiritual and mental acuity in order to continue to thrive.
On where founders should focus their financial energy…
Profitability, market research, and branding have been the most important factors in my success thus far. I know that the products and services I provide are profitable enough to not make me feel like I am being taken advantage of and to keep me inspired to do more. I took a deep dive into what others were offering before I formulated my ideas to make sure that what I had is always 1 of 1. And my branding is inexorably tied to who I am so that when people support my idea, they are supporting me.
Support is paramount. It’s really important to have a community that you have invested in that will do the same in return for you. I don’t just have clients; I have fans, cheerleaders, champions. I ask and they jump to help. That’s a key part of the support you’ll need on those days that you want to quit. There will be many.
On the biggest money lesson…
That I don’t HAVE to bootstrap!! It’s now clear to me that I have a choice and I didn’t believe that when I started. I think a lot of Black folks don’t know any other way. We can’t trust any sector to truly support us, so we do it ourselves. And fortunately the winds of change are showing us that we can make a way that doesn’t require us to sell our souls in exchange for dollars.
On her #1 piece of financial advice…
Do it! Start wherever you are. You are never going to feel ready. You are never going to have enough money to feel ready to take the leap. As long as you are in alignment with the flow of what you are supposed to be doing the money will flow freely to you. Your business will not grow in a system of lack. You have to believe so deeply in your success and be so secure in knowing that the money will be there when you need it that the universe will have no choice but to comply.
Once I started to see the patterns of how I was limiting myself with my fears, all of the blocks stopped. The pathways opened and the money flowed. I don’t worry anymore. If it’s meant to be, the money will be in the bank once I take my card out of my wallet! Believe in yourself first. I bet on me every single day of the week.
Christen Dominique, Founder , Dominique Cosmetics
On bootstrapping over raising…
In the beginning, I invested everything I had into Dominique Cosmetics so naturally, I wanted to have complete control of my brand. Bootstrapping my own business meant that I could develop my own dream products and concepts into a working business as soon as possible without having to check with the opinions of others. I've always been very confident about my passion for helping others feel beautiful inside and out, and didn't want to compromise my vision or where I saw the brand's trajectory.
On the bootstrapping process…
I was able to self-fund my business by investing the savings from my early YouTube earnings. I'm lucky that I had a successful smart on YouTube, but I was also smart to save every nickel and dime that I could do create my brand.
On the challenges she faced…
The most challenging part of bootstrapping my business was finding the right labs and manufacturers to create the custom formulation and packaging I envisioned. We had to try working with a few different companies until we finally found the perfect fit for Dominique Cosmetics. Finding the perfect partner, and the setbacks that come with it, are just part of the process-- and it makes the final product that much more worth it.
I'd definitely recommend bootstrapping to other budding entrepreneurs and founders. Being your own boss provides you with the liberty to really pursue and create your vision. By the end, would you rather look back and think that you made too many compromises OR look back and think that you accomplished everything you wanted (even if it was pricey)?
By nature of self-funding, there will be a lot of risk and trial and error, especially if you don't have an expert or mentor to guide you, but through this, you will find that the mistakes make you more aware, confident and savvy. Every failure is experience.
On where founders should focus their financial energy…
Invest in the talent and skills you need to grow your business. Hire a core team. Find the right people, specifically people you can trust and are experienced in different areas of the business that you're not. For us, we searched for employees with experience in management, finance, product development, marketing, legal, and logistics. Outsource if you have to and bring in employees if needed.
On the biggest money lesson…
Keep track of every expense and every (product) revenue stream. I learned early on to maintain positive cash flow, and hire or outsource a business manager, bookkeeper, CPA, etc. to keep track if necessary.
On her #1 piece of financial advice…
Hire a core group that understands your brand and believes in your business, and find the best manufacturer to bring your creation to life.
Gianna De La Torre, Jill Munson, Britta Plug, Co-Founders, Wildling
On bootstrapping over raising…
It felt very affirming to do this on our own. It was the ideal way for us to stay true to our mission without outside influence or pressure. It's exciting and empowering to be a self funded, female owned brand. Empowerment is a big part of our ethos.
On the bootstrapping process…
We each made initial investments, started small, and put all the work. The first orders that shipped around holiday 2018 were sent from Jill's dining room table. Gianna also had her first baby right around then, so it was a very intense time. The hardest part is the fact that you have to dedicate every free moment to your business, but the upside is that it pays off in the end. With each month, we have dialed in our operations and gained more insight into how we want to grow. As founders, we know our business so well because we have done every part of it. Looking back, we are all happy to have done it this way, but it is not for the faint of heart. It's great to have partners in a venture like this, we are very grateful for each other.
On where founders should focus their financial energy…
That varies from industry to industry, but we invested in the quality of our product and felt that would speak for itself. That also included branding, eco - packaging, and premium ingredients. We didn't invest in marketing, we focused on gaining traction via instagram.
On the biggest money lesson…
Some things are worth the big spend, and there is a lot you can accomplish at a very low cost using social platforms.
On her #1 piece of financial advice…
The time you put in is the most precious investment. If you're putting your money into a project, you should expect to put a lot of your time there as well—it makes all the difference.
Roma Patel, Founder and CEO, Tejari
On bootstrapping over raising…
Tejari began the moment my passion for clean nutrition progressed into an urge to do something about it. I’ve always considered myself career-driven, but I never would’ve thought I’d start my own business. More importantly, I knew I wanted to do it on my own, with the help of my amazing advisory board. Starting your own business is stressful and challenging enough as it is—I didn’t want the added pressure and risk of an investor hanging over my shoulder, second-guessing my every move. As a startup, it’s important to learn and evolve as you gain customer feedback, and I wanted to be able to “lean in” to feedback.
On the bootstrapping process…
My husband and I have always been savers. In the beginning, we had a rough business plan and how much we wanted to “put into” it. However, we learned quickly that in a very competitive market, there are pros and cons to every approach when it comes to funding. For example, I wish I had a bigger budget to support content—content is SO important when it comes to a health and wellness product. Honestly, we can’t have enough. That being said, sticking to your plan as closely as possible will help keep you on the right track.
On where founders should focus their financial energy…
It really depends on your own business and the problem you’re trying to solve. For me, it’s simple—all of my energy is put into product development (aka, my partnerships with Registered Dietitians and Food Scientists) and content development. This allows us to educate our customer base on nutrition while teaching them how to incorporate our superfood protein blends into their diets.
On the biggest money lesson…
At the launch of my business, I got too creative-happy and invested too early in photography and branded assets. Although these are very important, I could’ve eased into this more by starting with the essentials and growing assets over time. Now that I’m creating new products as we speak, this lesson has been a great opportunity for me to take what I’ve learned and applied it to my launch strategy moving forward.
On her #1 piece of financial advice…
Don’t let the “big guys” get you down. I often have those days where I think to myself, “If only I had a team of people… If only I had…”. It’s so easy to compare yourself to other brands and get caught up in all the things you don’t have—before you know it, you’ve lost an entire day. There’s never enough time. That’s why it’s so important to control what you can and make the best decisions based on what feels right. Also, make sure to surround yourself with people you trust and who understand your business. I happen to work with amazing freelance consultants and am so happy to have them as my resource.
Dr. Heather D. Rogers, Founder and CEO, Doctor Rogers RESTORE,
and Co-Founder, Modern Dermatology in Seattle.
On bootstrapping over raising…
I am very fortunate to be in a dual income household with a very supportive husband. We both work full time as physicians. When I started Doctor Rogers RESTORE, I did not want to be beholden to anyone that could affect the process. I am a perfectionist, I was doing something new and I was putting my name on it. The process could not be rushed or limited by having to meet someone else’s financial deadlines.
It took three years for me to bring my first product to market because it was to be used on healing skin. It had to be both safe and effective and that requires time for lots of testing. I also wanted to use only the highest quality, most sustainable ingredients and that is just expensive. I am driven by outcomes so if it works better, if it is safer, and I am going to use it even if it is more costly. The beauty industry is about making money while I am about making things better. I needed the freedom to have that be the driving force in my decisions, not making money.
If you are lucky enough to use your own capital, do it, but not to the point where you are putting your way of life at risk. Just know the more people who get involved earlier in the process the more complicated it can be to stay true to your vision. Also, never ask for money unless there is no other way through. Be creative and keep at it.
On where founders should focus their financial energy…
I read somewhere that it takes five years and one million dollars to build a successful company. Whether or not that is true for your specific company, those are good guidelines to think about. Can you keep your day job to make ends meet for those five years? If not, you will need a business partner and then you have put a lot of work in early on in regards to what having that partner means, and what percentage of the company she or he will get. Having a good business attorney and accountant can help you not make missteps early that you may pay for in the years to come. Also, it is important to identify the core values of your business early and ensure that any partners respect these same values.
On the biggest money lesson…
Good people are worth good paychecks. My greatest expense is my payroll but I get to work with amazing people who are incredibly good at their jobs. They get me, they get the brand and they understand what I am trying to do, which is now what WE are trying to do and that is a wonderful thing. I could not get by a single day without my team.
On her #1 piece of financial advice…
Make a line in the sand. How much money are you willing to spend on your dream? What are the variables that would change that number? For me, I spent twice what I was willing to put in but the second half was to fulfill a huge order from FabFitFun so it became a calculated risk with a large, expected payout. It was still a scary time but it was a risk I was willing to take and it was the right choice.
Arielle Olfers, Founder and CEO, The Southern Influence
On bootstrapping over raising…
I was raised to "never quit your job until you have a new one.” While working at an experiential agency full time, I took my first couple contract clients and worked nights and weekends until I was able to go out on my own. I didn’t have access to outside or personal funding, so I didn’t really have another choice. Bootstrapping our agency was the only way to go into business, and using my first available extra income to hire a trusted female partner (Caroline Dedeker) was one of the best business decisions I ever made.
On the bootstrapping process…
I stretched and overextended myself until I was able to bring on additional help–working nights and weekends, and picking up one-off projects. This went on for about six months before I was able to quit my full-time job at my previous agency. It’s not tenable long-term, but it prepares you for the challenges ahead. As far as challenges go, as a small business sometimes it feels like you’re on a see-saw. On one hand, business is going very well, but I am scrambling to find enough resources with the skill set I need. On the other hand, when business is slow I have employees on hand I am still responsible for. It’s a continual challenge to find the balance of retaining and growing talent, while retaining and growing business.
Another challenge I faced starting my agency was that sadly, not all women entrepreneurs are willing to help other women. Especially in PR, I experienced imposter syndrome, a competitive and oversaturated market, and a repetitive response of, “I’m too busy.” It took awhile to find my people, but once I did, I also found my voice and was able to put the imposter syndrome to bed. An observation I’ve made is that once I built up my network and my confidence, I started hearing from those busy folks wanting to be involved in the work we were doing. As frustrating as that is, I learned quickly that’s how the world of entrepreneurship works and looking back, I would insert myself more often and match that with being more gracious to myself and to others who might have been going through the same thing!
I would recommend the bootstrapping route to anyone entering into business ownership. Especially, in this time of free education on platforms offered like Create + Cultivate, Facebook, Youtube, and Instagram. There are endless resources available if you’re willing to do the research and the hard work. Another part of bootstrapping is being open to the advice and experiences of others while sticking to your internal compass. Stay the course, take it day-by-day and learn to bob and weave. We live by a few things at The Southern Influence: be nimble and kind, have grit, and be a f*cking pleasure to work with. Note: We didn’t come up with the last one, it was some of the first client feedback we received and we use it as a guiding principle.
On where founders should focus their financial energy…
Focus on making more, not spending less. It creates a mindset of abundance. Apart from that, time is money. Leverage contractor relationships to bring on help in your areas of highest demand. At TSI, we have a few editors, film crew and PR professionals on-hand whenever needs arise, and have had as many as three production or event jobs running in a single day. Film work is very seasonal, so having the ability to flex with demand helps us meet the need of our clients and their partners.
On the biggest money lesson…
Get a personal banking relationship. Bigger isn’t always better when it comes to financial institutions. Find a banker you can speak to. Someone who will listen and is excited about your business. You will have questions and you deserve to have them answered. Forming this relationship will give you someone to reach out to when you need help is one of the biggest lessons we’ve learned during a global pandemic.
On her #1 piece of financial advice…
Focus on your own uniqueness and realize what worked for someone else may not work for you. Apart from that, get a personal banking relationship and a line of credit on reserve so you’re prepared in the event of a crisis (hello, COVID-19).
Alexia Wambua, Founder,
On bootstrapping over raising…
I wanted to have creative control for my brand, as it is birthed from my facial treatments. I wanted to create products that I see a need for in my everyday life.
To me, keeping creative control gave me the freedom to create the products that I wanted. I have such a great test market with my everyday clients and I get their feedback on how they feel about our products.
It's not about chasing a trend to create a product, it's about seeing what is needed in the clean beauty market and in your everyday regimen.
On the bootstrapping process…
I was working full time in the treatment room, and coming home to work on developing products essentially— I have two jobs. I naturally have an administration edge to me from previous jobs so I was able to figure out the logistics, but once you dive in and realize you are building from the ground up it is beyond having fun.
In the beginning, I took out a small business loan but did not put anything on credit and it helped me get off my feet. It was my decision to do that versus having an investor. I then paid off the loans and figured out my cash flow to put back into the business.
My advice to other entrepreneurs is to do as much as you can until you need someone—get as far as you can on your own first. It all depends on how much control you want and your plan on selling it in the future. I want to create products that people don’t want to live without, that are authentic and memorable.
On where founders should focus their financial energy…
It is very circumstantial to your brand for where you put your financial focus. You should look at the big picture, you may want to invest in your website, products, or photographer depending on what your specific needs and weaknesses are.
On the biggest money lesson…
The biggest lesson that I have learned is that I don't have to have everything all at once. Doing too much too fast, in the beginning, taught me a lot about product development. I developed products for my clients based on what they needed at first. I decided to pair back on products and focus on quality versus quality and from there I learned to tighten up my assortment and ingredients.
On her #1 piece of financial advice…
It is okay to utilize your network, you can create from anywhere and to outsource certain things that you don't have to handle, it’s all a part of being a small business. I have a lot of creative friends that I utilized from my label maker to my phenomenal photographer.
There are so many details that are presented at the beginning that begin to evolve. From ordering to costs of shipping, packing and sourcing, timelines, and raw materials that you don’t necessarily know everything about until you get started.
Don’t be afraid to do something, even if it is not trending. If you have a story and it’s authentic, go for it.
Taylor Elyse Morrison, Founder, Inner Workout
On bootstrapping over raising…
I worked at a startup where the owner bootstrapped for the first several years of the business, so that seemed like a logical way to start. As I started getting more exposed to the world of outside investment, I began to see bootstrapping as a way to be more intentional about Inner Workout's growth. I didn't want to be forced to hit aggressive growth targets in order to provide investor returns; I wanted to prioritize building a values-driven organization.
On the bootstrapping process…
I'm fortunate to be in a partnered relationship. Having a husband with a day job definitely made this road easier. We also had savings to help support us. I transitioned out of my role in a part-time position, which also helped me have a steady income stream. I'm naturally a scrappy person, so getting my hands dirty to build the business came easily. I struggled a lot with prioritizing my time. I think everyone's situation is different. Bootstrapping worked for me, but it isn't for everyone. Some people need the influx of cash to develop and grow their business. Some people want to build a unicorn company.
On where founders should focus their financial energy…
Business owners should focus on the tasks that generate revenue. There are tasks that are more exciting than others. There are opportunities that are flashy, but you have to really get clear on impact.
On the biggest money lesson…
Stay close to your numbers. It's hard to make effective decisions if you're not diving into your financials on a regular basis.
On her #1 piece of financial advice…
Test before you invest. You may have a brilliant idea for a company or a new product, but that doesn't mean you need to put all of your money behind it right away. Send out a survey. Collect pre-orders. Test the waters with a smaller scale product. This will save you so much money in the long run.
Chelsea Scott, Co-Founder ,
On bootstrapping over raising…
My team and I saw an opportunity to do something truly unique by importing Korean Beauty products and other global beauty innovations to the US that weren’t currently available for sale. With our collective experience and my personal experience on HSN, we felt the business model was one we could execute with low barriers to entry and relatively low overhead expenses.
Since the direct-to-consumer space and HSN provided us a quick and direct way to reach our customers, we wanted to focus on making sales rather than focusing on raising capital. It was always our intention to invest sales revenue back into the business.
On the bootstrapping process…
We started small with a focus on one or two products that we felt had the best opportunity for success, then invested our own money into inventory. Inventory has always been our biggest investment. As a curation platform for beauty innovation from around the world, we knew that our concept would only work if we focused on the best products. We were concerned that if we looked for outside investment that our focus would shift from the product to investor relations. Because we were self-funding, we were sometimes faced with the challenge of deciding between two products or limiting the inventory on others. When you don’t have tons of cash flow or investment at the beginning, it sometimes felt as though we were missing opportunities.
Every business is different, but I would recommend self-funding as long as possible because you can maintain the most ownership and control of your vision for the company.
On where founders should focus their financial energy…
I think each business is different, but I have always found that if you truly develop and make a product that solves a problem for real people, you can really make an impact and build a business. Spend time on learning about the solution you are providing and make sure you have a viable product that people want, then invest your money into making that. When you are small you don’t need to sell to everyone, you need to find your first customers.
On the biggest money lesson…
Budget for the unexpected! It is hard to budget for things you may not expect, but from all my experiences something always comes up. Be ready to cover an unplanned expense. That may mean using a credit card or adjusting budget.
On her #1 piece of financial advice…
It is always going to cost more than you think so think ahead, cut any expense that is not needed or working. It is better to trial and error quickly than to let expenses build up. The hard work and sacrifice are real but when you begin to turn a profit, with no outside help, just your team's sheer belief in what we are doing, it’s the greatest reward of all.
Pooja Bavishi, Founder and CEO, Malai Ice Cream
On bootstrapping over raising…
Most food businesses, at their early stage, are not investable. Typically, they need traction in order to be able to take on debt or give away equity. However, there are other resources available for startups ranging from crowdfunding to grants. When I started this business in 2015 bootstrapping was the best and only option for me. Looking back, I am truly happy to have taken that route as it gave me the control to make 100% of the decisions that now define Malai.
On the bootstrapping process…
I self-funded my business with personal savings, and with some assistance from my parents. During the first six months, I focused on proof concept, which allowed me to stay extremely lean financially while still developing opportunities. This ensured that I wasn't spending more than what was coming in without knowing the types of opportunities that would arise in the future.
On where founders should focus their financial energy…
I think it's important for a business owner to always be comfortable with all finances. The nature of business is capital intensive, and you need money to grow. So even with all other responsibilities, business owners should always be seeking opportunities and feel comfortable to fundraise.
On the biggest money lesson…
You always need more than what you think you do, and you need to plan for unexpected events.
On her #1 piece of financial advice…
Although all financials are important, make sure you have a strong understanding of your cash flow. Above all else, it is important for business owners to know the money that is coming in, and more importantly, going out.
Courtney Claghorn, Founder, SUGARED + BRONZED
On bootstrapping over raising…
I started my business when I was 23 years old and to be completely honest, I didn’t even consider anything other than bootstrapping because I knew nothing about the capital raising process, nor did I think that anyone would invest in my concept at that age and lack of real-world experience. I started S+B out of my apartment in an effort to keep start-up costs low and become profitable from early on so that I wasn’t dependent on outside funding to grow the business.
On the bootstrapping process…
My boyfriend, co-founder, and I each put in $500 initially and continued to reinvest profits every step of the way. In the first few months of getting the business off the ground, I kept my “corporate” job and would take clients on my lunch hour or after work (because fortunately both my office and my apartment were located in close proximity within Santa Monica). Once the business began to gain traction, I quit my job and looked for our first retail location.
I used the (very small) amount of accumulated profits to pay for the build-out of the first location on Montana Avenue in Santa Monica. We weren’t able to afford anything fancy so we continued to focus on providing great services and creating a welcoming environment. As the business continued to grow, I took the smallest paycheck possible and re-invested most profits and took out SBA loans to open additional locations. We didn’t raise our first round of funding until we reached 10 locations.
On the challenges she faced…
We faced many contractor and architect issues in our early years. We knew nothing about the construction process and it was definitely a learning curve. We also quickly realized that everything becomes more expensive with expansion—legal fees, insurance, etc. In an effort to remain lean, we tried not to hire additional people until we undoubtedly couldn’t handle the work ourselves and in retrospect, it was often too late. We often found ourselves working around the clock to the point where it was incredibly stressful and probably not healthy.
Despite the difficulties, I would recommend bootstrapping to other entrepreneurs if at all possible. I know that some businesses are literally impossible to start without funding, but a lot of businesses raise money from the beginning when it wasn’t absolutely necessary. I think that bootstrapping is a great way to remain nimble and take time to truly understand your business, the customer, and what the customer wants. It creates a culture of frugality and forces everyone to only spend money where it’s necessary.
As much as I admire entrepreneurs like Sara Blakely (founder of Spanx) who never raised money, I know that’s not realistic for everyone. We even decided to eventually raise money with S+B, but it was after many years of business and thoughtful consideration. Although bootstrapping in the early days can be hard, it creates a foundation that will likely make you more successful in the long run, even if you do choose to eventually seek outside funding.
On where founders should focus their financial energy…
I would say the highest priority is spending money on your core business products and/or services (in terms of hiring and training). Beyond that, it’s most important to focus financial energy towards resources that allow you to track your ROI, such as digital advertising.
On the biggest money lesson…
I would say that my biggest money lesson has been to question every business practice that costs money, no matter how standard it may seem. No matter how intelligent some of us are, I think that the herd mentality can still lead us astray at times. I have seen some really smart people spend large of amounts of money on business services because it seems standard or unavoidable, but when you get in the habit of questioning all spending, you begin to realize that a premium price tag can often be avoided with a combination of creativity and hustle.
On her #1 piece of financial advice…
My financial advice for new entrepreneurs is to stay lean for as long as possible. The business naturally gets more expensive as you grow, so why would you want to load up on unnecessary expenses early on? Much like a lot of things in life, it’s much more difficult to take away extra support and resources after getting used to them than adding them once you realized that you really need them.
Christina Uzzardi, Founder and Chief Glow Giver, Cheeks & Co.
On bootstrapping over raising…
After consulting with mentors and other business owners, and going the equity fundraising route for almost a year to no avail, it was clear bootstrapping was my only option to launch the business. Without 1. a clear proven business model (I didn't have that yet since we were pre-revenue) or 2. a successful previous exit (I didn't have that either) equity financing probably isn't going to happen. Our only options were Friends & Family (not an option personally) or debt financing so I took the quickest, most realistic path. I saved the fundraising for further down the road. If I was going at it alone I knew that I had to be very smart with every dollar spent, and invest in the right areas.
On the bootstrapping process…
I self-funded the business primarily through an SBA Startup Loan. The process was long and tedious. From start to finish it took nearly a year from the time I decided to go the debt financing route. Financing your start-up through an SBA Loan involves a lot of red tape. Our entire construction and build-out was micromanaged from the lender, down to the last dollar spent but it was the best thing for my small business since it really helped me analyze my spending. It was an added layer of protection.
I would recommend debt financing for a startup. Of course only if you have the credit and means to secure a loan. Again, it's not easy. But not being tied to investors, especially in the beginning is the best thing you can do. You retain control and can truly build the brand you set out to build. Investors typically require huge returns, and as a small business, your focus should be building a brand and a successful business model. And when you take money from friends and family it can get complicated.
On where founders should focus their financial energy…
Understand how the money flows. It's important to find a good accountant that understands the big picture and can help you successfully set up your books. If you aren't a numbers person, don't kill yourself (and your business) trying to be.
On the biggest money lesson…
If I could go back I would have secured a larger runway/working capital cushion. These past three months since COVID-19 have been very challenging. It's no fun to have to go back and raise or secure more financing so soon after opening.
On her #1 piece of financial advice…
I realize this advice may not be the most ideal for certain businesses like high growth tech startups, but I firmly believe that #1 most important thing is to build a working, profitable business model before you launch! Be clear on your profit margins, and how they work in the overall picture of your business. Oh, and don't set your prices too low. It's a lot easier to lower your prices than to raise them.
Natasha Samuel, Founder, Sol Studio, Instagram Strategist and Host of The Shine Online Podcast
On bootstrapping over raising…
I decided to bootstrap my business because at the time it was the only route I knew to take. I was still in college figuring out how to not be "broke" so I was scrappy with the tools and investments I made to ensure I was bringing in money first before I put a financial strain on myself. While I outsource and invest in more tools now, I still keep that mindset of only investing in what will move the needle further in my business.
On the bootstrapping process…
I self-funded my business by using my financial aid at the time to support my personal expenses while only spending the money I brought into my business on expenses. In the first few months in business, I wasn't making enough to fully support those expenses, so I eventually had to live at home for a short time which was a difficult but necessary choice to make. I'd recommend staying within your means to other entrepreneurs starting out whether that means keeping expenses low, moving home, getting a part-time job, or making sacrifices to fund your dream. Looking back, I wish I had savings to fall back on but since I was so young I ran with what I could by making sacrifices and being scrappy with free tools and the skills I already had.
On where founders should focus their financial energy…
The most important financial investments are things that are necessities for your business, especially during the early stages. It's so easy to get caught up in needing to have a website, branding photos, logos, and assistance out of the gate but you truly don't need those until down the road. Focus on what you need to make money, for me it was scheduling tools for social media posts, a CPA to help me with my finances, and a CRM for managing my clients. Every other tool or outsourcing task I could figure out with a free tool or I could wait to implement until I was ready. Don't get distracted by the sexy things, focus on what makes money.
On the biggest money lesson…
The scariest investments that are made with intention are always worth it. When I looked at a problem I had with my course sales funnel and page, I knew I need experts to help me improve it for my next launch. Spending $1K+ during a pandemic did not seem feasible, but it led to a $10K launch and an improved funnel that can be refused over and over again. Smart investments in people and tools that save you time and money for a better result.
On her #1 piece of financial advice…
Separate my bank accounts from day one. This is something I wish I did so much sooner to make taxes easier and managing my money less stressful. I now have separate accounts for business and personal checking accounts, savings, and emergency funds. Instead of meshing the personal and business together, keeping them separate helps me spend wisely and stay in my means while protecting myself for crazy situations like COVID-19.
Dave, Devon, Michelle, and Sydney Carlson, Co-Founders, Wildflower Cases
On bootstrapping over raising…
Our company started by an accidental run-in with Miley Cyrus in 2012 where she fell in love with a phone case that my mom had made for my sister and I. My family saw an opportunity to start a business and the timing was perfect because we started receiving orders the next day which helped fund the companies growth immediately.
On the bootstrapping process…
From day one, we decided to keep our overall costs as low as possible. However, whenever we needed to purchase supplies, etc. we used credit cards that had reward points and we pulled from our savings account. The only challenge was that we grew a little slower since we were self-funding. We would definitely recommend this route to other entrepreneurs because you end up owning 100% of your company versus having to give up equity to an investor.
On where founders should focus their financial energy…
During start-up mode, all of our funds went to buying inventory. So for us, our focus was on refining our cost of goods.
On the biggest money lesson…
Don’t feel the need to do everything. Stay focused on what you’re good at and perfect it. Perfect the costs, perfect the cost, perfect everything.
On her #1 piece of financial advice…
If it’s not broken, don’t fix it. Get creative and don’t be afraid to DIY. We live in a time where we’re able to run a company out of your own home. Try not to compare yourself to the flashiness you see around you, thinking you need a huge office space and a big team. Start small and work hard. Let the growth happen naturally
Tiila Abbitt, Founder, Āether Beauty
On bootstrapping over raising…
I wanted to bootstrap my business because I wanted to have creative control. As a product developer with a fine art background, the design and formulation is not something I was willing to compromise. I had a vision of a brand and I wanted to create it.
On the bootstrapping process…
I remortgaged my home in order to take out $100k to bootstrap this business. There are many articles out there that say you need a million dollars to start a beauty brand, and that's completely true. So as you can imagine, I had to be scrappy, very scrappy. And I still face financial struggles, since I have not taken any outside funding, I'm still bootstrapping. I have not paid myself a dime since I launched the brand two years ago which is hard. All of the money goes back into my business and I could definitely be building it a lot faster and louder if I had the financial means to do so. But there is so much I am not willing to compromise on ethically-sourced ingredients and sustainability, I have yet to meet an investor who would not interfere with that integrity, who believes in what I am building as much as I do.
I set out to change the industry and it's changing. No one was talking about sustainability in prestige beauty or ethically sourced chid labor-free or fair wage ingredients. Aether Beauty is the only fully recyclable makeup brand in all of Sephora in our current recycling streams. And other brands are noticing and following. The EPA reported that 1/3 of the landfill was from the beauty industry and it's an addiction to single-use packaging. I'm very happy to be leading this change.
On where founders should focus their financial energy…
I think it depends on the business strategy, but if you are a DTC brand, you're going to be paying to play and it costs so much money in advertising to make a DTC brand successful. So you'll definitely need to take on investors from the start. It's why I went the retailer route because the right retailers can help build brand awareness as well. And there are numerous studies out there that show DTC has now surpassed the costs it takes to launch a brand at a retailer with how much you have to spend in marketing and ads that if you are small without a lot of funding, retailers can be a great way to help build your brand.
On the biggest money lesson…
Cash flow is always hard, especially bootstrapping. But just because you can get some doesn't always mean you should take it. I've had investors knocking since day one and it was never a harder lesson. I never knew the investor world prior and when I heard someone wanted to invest, I took the meeting. I spoke with so many investors that took months and months of meetings. It's like dating, everyone loves each other at first and then the closer and closer you get, if you sneeze wrong, they look for a reason to say no.
I've had some investor offers as well and they were just so founder unfriendly in the terms, I'm very happy I was able to say no. The stats say 2.2% of funding goes to women, and it shows. I've never been more demeaned in meetings with men who do not understand the beauty landscape or let alone the ethical beauty category I am building. And if I just had any insight, I wouldn't have taken so many meetings where I could have put that time and energy instead into building my brand. As the only employee for my whole company, my time is most precious.
On her #1 piece of financial advice…
Always take into account that you will always need more money than you anticipate and plan for a rainy day.
Kristy Hunston and Grace O’Sullivan, Co-Founders, Avoila
On bootstrapping over raising…
For us, there wasn't any other way. We were excited to go out on our own, leaving the corporate world behind us, and that meant that we were going to be financially responsible for launching Avoila.
On the bootstrapping process…
In the beginning, we agreed on how much we were both going to invest, knowing of course that we'd have to revisit this conversation as we moved through the process should the needs of the business change. Rather than putting this agreed-upon capital into the bank right away we made investments as needed which felt like the responsible approach.
Since we are self-funded, we have moved more slowly than brands with major investors. We felt that we had to be extremely thorough in our search for any creatives, manufacturers, and vendors involved in our bootstrapping process. We had to ensure that not only were the partners able to meet our quality standards, but they also needed to work within our budget while adhering to our brand mission and story.
While it may have taken longer to launch, we highly recommend taking the time to make a solid plan to other entrepreneurs (if the means exist) because it helped us build a strong stable foundation to grow and expand from.
On where founders should focus their financial energy…
For us, the biggest focus was on creating a quality product that produced results. So we concentrated on product research, development, and manufacturing (including conscious ingredient sourcing). As consumers ourselves, you can tell when a brand hasn't put thought, time, and effort into their product. As Founders of Avoila, it was important that we delivered a high-quality product that would translate into positive results for our consumers and repeat sales.
On the biggest money lesson…
Our business launched in February 2020 so we are still learning financial lessons. If we had to talk about one lesson, it would be around evaluating the best use of our money. For example, we chose to put a significant amount of our money into a marketing channel that has a very low promise of return because we felt that it would increase our awareness and credibility as a new entrant to a saturated market. The return on investment has been lower than expected, and we now realize that our money may have been better spent on new product research and development.
On her #1 piece of financial advice…
Be thorough, but not so thorough that you're paralyzed. Enjoy the process and possibilities of taking risks.
MORE FROM THE BLOG
How a Digital Nomad Built a Multi-Million Dollar Business While Working Part-Time—With Just $800 and a Laptop
And how you can too.
Photo: Taryn Elliott from Pexels
Ever since I was little, I remember being told that I had to work hard, get good grades, go to college, get a job, make money, and then I could do what I wanted. Except, I didn’t want that for myself. I didn’t want a 9-to-5 job, counting down the days until my next vacation. I wanted something more.
I just didn’t know how to get it.
For a long time, I was torn between joining the Peace Corps and getting a degree in comparative politics. I even thought about attending law school, but I knew it wasn’t what my soul really longed for. While all of the above would have absolutely satisfied the approval of others, it wasn’t what I wanted. I wanted to travel the world, and I didn’t want to wait years until my bank account made it possible.
During my senior year of college, I started to think about creative ways I could earn money while traveling. Blogging was an option, especially since I already had a website and a logo, so I figured I could trade services for accommodations. However, since both of my parents are financial professionals, I realized that monetizing a travel blog would be challenging (and improbable).
Without a better plan in place, I decided to take the leap anyway. Before I knew it, I bought a one-way ticket to Bali armed with my laptop and $800.
“Success doesn’t happen overnight, but—with hard work—it can happen pretty fast.”
When I first arrived in Bali, I was making $12 an hour as a social media manager. I even worked for free or low-paying positions in return for testimonials, and that hustle paid off. I built a foundation of testimonials and referrals as quickly as possible, and I started to attract more clients. In my first month, I made $5,000.
Except, I was doing it the wrong way. I was working way too hard, I was overloaded with clients, and I’d trapped myself in a self-employed version of the same corporate grind that I sought to escape. Here I was, living in Bali, but I was working so hard that I couldn’t even enjoy it.
I could keep doing what I was doing, sure, building a business trading time for money, or I could take a leap of faith into something new.
I decided to invest in my own business coach, spending $3,600 that I could barely afford on hiring my first mentor, but the investment paid off in a huge way. Soon, I hit my first five-figure month. Then it doubled. Suddenly, I was bringing in $50,000 a month and landing features in Forbes and Business Insider. Within a year, I was a self-made millionaire working less than 15 hours per week from all around the world, and it’s been growing ever since.
And while starting a business definitely has its triumphs and tribulations, here’s what made it possible and how you can do it too.
1. Be very intentional about everything you do.
You need to know why you’re doing what you’re doing. Far too many people get caught up in chasing money or some other arbitrary version of success. What do you want? What actually drives you?
I knew I wanted a business that gave me the freedom to travel the world, so I created a business model that allowed for that. Most businesses choose one of two pricing models, either premium pricing for a few clients or low pricing to serve a massive amount of people.
My business is built on both. By creating multiple streams of income, I can help as many people as possible and hit my income goals without working 80 hours a week. It’s all about being intentional and strategic in choosing what works for you.
2. Never, never never give up.
I moved halfway around the world by myself, so it’s no surprise that I thought about packing my bags, going home, and giving up. Fear started to slowly creep into my life, especially when it came to visibility. I convinced myself that other people would make fun of me for what I was doing, and it was my weakness for the longest time.
At one point, I was ready to quit. I went home for Thanksgiving, and my dad told me to give it six more months. Just six more months. Sure enough, I returned to Bali and my business exploded.
I was ready to let my own limiting beliefs hold me back. I wasn’t sure how I was going to get there, and the unknown can be incredibly scary. However, you’ll never reach your destination in life if you give up.
3. Focus on personal branding and build a community.
Once I started to build up my personal brand, a strong community began to form. I focused on creating a unique, visual brand that allowed me to share my own story so that I was able to stand out and attract the right followers for my business.
Then, I started to establish a presence on social media and connect with my audience on a much deeper level. As a digital nomad, having a strong brand on social media is the reason why I’m able to run my business from all the different countries I travel to. It allows me to establish a global, online presence and continue to attract the right clients regardless of the geographic location.
Plus, there’s no better feeling than having your audience root for you. People want to see you succeed, and you get to witness the direct impact your business has on other people’s lives. That’s incredibly fulfilling.
4. Create content that provides real value.
If you want to connect with your audience in a huge way, then you need to be practicing value-driven marketing. Whether you’re creating podcasts, live streams, long-form blog posts, YouTube videos, Instagram Lives, or something else—what you’re creating doesn’t matter. Just make it valuable.
Remember, everyone’s journey is unique. Some people crave freedom. Others want the ability to spend more time with their families. Maybe you dream of achieving location independence. All of these things are doable, but it all starts with a choice.
And once you know exactly what you want out of life, it becomes way easier to create the business you want around it.
“Once you know exactly what you want out of life, it becomes way easier to create the business you want around it.”
—Sabrina Philipp, International Online Business and Social Media Expert
About the Author: Sabrina Philipp is an international online business and social media expert who has been featured in Forbes, Business Insider, Marie Claire UK, and more. She helps entrepreneurs build intentional, manageable, and profitable businesses so they can experience ultimate personal and financial freedom.
Opting to skip the traditional 9-to-5, Sabrina moved to Bali with $800 to her name. Within a year, she built a thriving million-dollar business from her laptop. Currently traveling the globe with her fiancé Paul, Sabrina has a loyal community of over 100,000 business owners who follow her closely to see where in the world she’ll inspire them from next. You can follow her on Instagram at @sabrinamphilipp.
MORE ON THE BLOG
Show Me the Money: How to Get Funding and Scale Your Creative Business
From understanding capital to the prerequisites for funding.
Arielle Loren is the founder of 100K Incubator—the first business funding mobile app for women in both Apple and Google’s app stores. The story was part of her “Show Me the Money” workshop held at the Create & Cultivate Vision Summit in Miami.
Photo: Courtesy of Arielle Loren.
UNDERSTANDING CAPITAL AND HOW IT WORKS
(aka why your creative business needs money to scale!)
There are three categories of funding: grants, equity-based investments (what most investors require), and debt-based funding (business loans, lines of credit, etc.)
Let’s talk about debt though… there’s a difference between consumer debt for vacations and clothes—and strategically using a business loan as working capital for your business.
For example, if you charge a bunch of clothes on your credit card, those clothes can’t make you money and help you pay that back. You have to go to work and actually do that.
But if you invest the $5,000 you received from a business loan and turn it into $15,000 in sales, that means there’s a $10,000 gross profit. Now that’s worth considering a business loan, and it’s that mindset that you need to have when considering all funding options for your business.
PREREQUISITES FOR FUNDING
(aka what you need to get your money!)
Funding Budget
50-70% Advertising or Direct Revenue Generating Activities
30-50% Infrastructure—Sales Funnels, Photo and Video Shoots, Websites, Consultants, etc.
Average Personal Credit Score
Minimum 620 and up
Register Your Business Entity With Your State Government
LLC, S-Corp, C-Corp
Save money by registering directly on your state government’s website
Register Your Business for an Employer Identification Number (EIN) with the IRS
This is 100% FREE at irs.gov
Open Your Business Bank Account
Your Personal Finances and Business Finances Cannot Be Co-Mingled
File Your Taxes and Annual Report
THE 3 LEVELS OF FUNDING
(aka figure out where your business stands for the highest approval rates!)
Level 1: Zero (aka pre-revenue) to $3,000 per month in sales
Business Credit Cards
Personal Loans
Home Equity Loans or Lines of Credit
Crowdfunding
Level 2: $3,000 or more per month in sales
Pitch Competitions
Business Grants and Government Contracts
Government Small Business Loans
Payment Processor Loans
Private Business Loans
Business Lines of Credit
Level 3: $9,000 or more per month in sales
Angel Investing
Venture Capital
About the Author
Arielle Loren is the founder of 100K Incubator, the first business funding mobile app for women in both Apple and Google’s app stores. She’s helping 100,000 early-stage women entrepreneurs get funding for their businesses and scale to 100K+ in yearly sales. She is also a graduate of Harvard University, where she holds a master’s degree in Management and graduate certificate in Strategic Management. Additionally, she also holds a graduate certificate in International Business Management from Georgetown University and a bachelor’s degree in Social and Cultural Analysis and a certificate in Producing from New York University.
Visit 100kincubator.com for more information, download the app, and start your free trial.
MORE FROM THE BLOG
The Top 3 Questions From Our Money Moves Slack Channel—Answered
ALLY financial gives you some tips that may help you prepare for your financial future.
Photo: Vlada Karpovich from Pexels
What is your relationship with money? Do you budget and plan ahead or do you live in the moment and spend more than you save? Either way, we need to get better at talking about it if we ever want to be better at managing it (and eventually having more of it)—especially when you consider that globally, women drive 70 to 80% of all consumer purchasing.
Now, more than ever, we need to help women plan ahead, to take ownership of their money, and to become masters of their own financial futures. To do that, we teamed up with during our recent Money Moves digital summit for a live discussion on how we can plan it forward and have confidence in our financial well-being.
After the chat with our CEO and founder, Jaclyn Johnson, we opened it up to a live Q&A so attendees could ask our panelists, Lindsey Bell, Chief Investment Strategist of Ally Invest and Emily Shallal, Sr. Director for Consumer Strategy and Innovation of Ally Bank all of their burning money questions—and you didn’t hold back. In fact, the questions kept coming even after the live discussion had ended in our dedicated Ally slack channel.
So, we decided to compile a list of some relevant questions we received and asked both Bell and Shallal answer them for you. Read on to learn more about how you can plan it forward and be sure to let us know what money topics you want to learn more about in the comments below.
1. What about social impact investing? Do you have recommendations on resources for this? How I might educate myself? I want to be able to dictate where my money goes and what types of businesses I’m supporting through my investments. Where do I start?
LINDSEY: This has become an important factor for many people as they invest. For sources of education, I like this guide CNBC put out (includes examples of different funds that focus on ESG investing). If you really want to really dig into the trend, check out The Forum For Sustainable & Responsible Investment, they have a ton of research and information you can dig through.
Just keep in mind that those resources are for informational and educational purposes only, and the information provided does not represent an investment recommendation or investment advice by Ally Invest.
“Reviewing your current situation as well as the risk of losing current income is the first step in making any decision. — Lindsey Bell, Chief Investment Strategist, Ally Invest”
2. Would you suggest re-adjusting your financial goals for the year or just figure out other ways to make your original goals?
LINDSEY: This is tough because it is a personal question. Reviewing your current situation as well as the risk of losing current income is the first step in making any decision. Instead of changing your goals or changing your life to meet those goals, it might make more sense to push those goals out while you weather the current storm. Writing out what your goals are and the options you have to reach those goals could be helpful in making the decision.
EMILY: If things haven’t changed for you and your income and expenses are still relatively the same, then keep your original goals. If your income has taken a hit and you think it’s likely to have long term consequences then you may want to readjust your goals. Sometimes with all of this uncertainty, working with shorter-term goals can be more manageable. Take your longer-term goal and break it down into monthly goals—what can you do in the next 30-days? This can be motivating and give you some emotional happiness that you’re still working on (and hitting) your financial goals.
“Paying off high-interest debt is usually always the right choice. But the right choice today has to factor in your job stability and your emergency fund. — Emily Shallal, Sr. Director for Consumer Strategy and Innovation, Ally Bank”
3. During these crazy times, do you think it's wiser to pay down your credit card debt or stick with the minimums and put money in savings?
EMILY: In these uncertain times, standard financial advice isn't always the best choice. Paying off high-interest debt is usually always the right choice. But the right choice today has to factor in your job stability and your emergency fund. If you have a large emergency fund, you probably want to pay down your debt. But if you don’t, you may want cash if you’re worried about job stability or are really uncertain about the future. The good thing is that if you don’t need those savings when we emerge from this crisis, you can use that money to pay down your credit card debt.
MISSED THE MONEY MOVES SUMMIT? WE GOT YOU!
READ THE TOP QUOTES FROM ALLY x MONEY MOVES FINANCIAL WORKSHOP BELOW:
On prioritizing yourself…
“If you don't pay yourself first, you're always going to feel like you’re a step behind.” — Emily Shallal
On having an emergency fund…
“You never want less than three months of income sitting in your savings account.” — Emily Shallal
On investing in the stock market…
“Research shows investing in the market may be a good way to get a return on your money.”
“Start small. You don’t have to put your life savings into the stock market on day one. Start with something that you know. You have to do your homework on the company.”
“You want to get used to what the market feels like, the daily ups and downs, and the volatility of the market.” — Lindsey Bell
On putting money into a 401k…
“Once you start small, you’re going to see this momentum, you’re going to see that balance start to grow and you’re going to get excited about it.” — Emily Shallal
On adapting during COVID-19...
“Innovation and iteration are part of the business process and it will take you places you never thought you were going to go.” — Emily Shallal
On finding the right financial advisor...
“Working with a financial advisor is like working with a therapist because you really need to get along with your financial advisor.” — Lindsey Bell
On finance resources to read...
“If you’re looking for just solid information, anything by Warren Buffett. The Wall Street Journal is also a great resource for building your financial acumen.” — Emily Shallal
“The Intelligent Investor by Benjamin Graham will give you a great perspective about the market.”
— Lindsey Bell
On the meaning of success...
“Success doesn’t have to be a destination. It’s about being a better version of yourself every day.”
— Emily Shallal
To see what Ally has to offer, visit Ally.com
MORE ON THE BLOG
This Founder's Curly Hair Salon Is Helping Women and Girls Love Themselves Just As They Are
“Our goal is to change the world one curl at a time.”
We know how daunting it can be to start a new business, especially if you’re disrupting an industry or creating an entirely new one. When there is no path to follow, the biggest question is, where do I start? There is so much to do, but before you get ahead of yourself, let’s start at the beginning. To kick-start the process, and ease some of those first-time founder nerves, we’re asking successful entrepreneurs to share their stories in our new series, From Scratch. But this isn’t your typical day in the life profile. We’re getting into the nitty-gritty details—from writing a business plan (or not) to sourcing manufacturers and how much they pay themselves—we’re not holding back.
“
Marketing is important, but not more than the quality of what you’re offering and the customer service experience. Word of mouth is GOLD.
”
—Carolina Contreras, Founder and CEO, Miss Rizos
Disrupting an industry isn’t easy.
Just ask Carolina Contreras, who decided to open a curly hair salon in New York City the very same year that New York state legally banned discrimination based on hair texture at work and in schools. The law, which went into effect in 2019, marked a long-overdue step in defining mistreatment based on hair texture or style as racially discriminatory, especially when you consider that Black women are 1.5 times more likely to be sent home from the workplace because of their hair.
“Miss Rizos is a curly hair salon that helps women and little girls love themselves just as they are,” the founder and CEO explained during our Digital Money Moves Summit pitch competition, which awarded a $10,000 grant to the deserving small business owner. “We use not only our curly hair salons but also our social media presence to redefine beauty standards and create a more inclusive picture of what it means to be beautiful. Our goal is to change the world one curl at a time."
In this installment of From Scratch, Contreras shares the nitty-gritty details behind what it really takes to get a business off the ground, including what it took for her to self-fund the company at the beginning (spoiler alert: all her savings) and how COVID-19 has impacted her brick-and-mortar business.
CREATE & CULTIVATE: Did you write a business plan?
CAROLINA CONTRERAS: When I first started my business, I wasn’t sure what I was doing. I knew we needed a mission, vision, and values, so my little tiny team of two (my best friends, btw) and I took a two-hour car ride to our favorite beach town in the Dominican Republic, Las Terrenas. There, we hashed out all of our ideas and goals for a curly hair haven in a place where our hair wasn’t validated or celebrated. Before the salon, Miss Rizos was a blog, so we used this online platform as an inspiration for our space. I’ve written long- and short-term strategies for the business, but we are just now—five and a half years after opening—actually putting a real business plan together. I say, do it early if you, can because it will help you strategize and reach all of your business dreams.
How did you come up with the name Miss Rizos?
Originally, I named my blog Miss Rizos for a few reasons. First, there weren’t any curly hair beauty pageant winners, so calling it Miss Rizos (Miss Curls) was satirical. I also felt like my curls were adorning my head and making me feel powerful, sort of like a crown, and misses wear crowns at these pageants. The name Miss Rizos embodies this idea that I can make my own rules and define my own beauty.
What were the immediate things you had to do to set up the business? What would you recommend to new founders reading this?
I definitely trademarked the name first so that no one would use it. I registered the website the moment I thought of the name and created a social media handle I thought we could potentially use. Finally, defining the mission, vision, and values of a company is so important, and I recommend people actually spend time doing this because these principles will guide the way and help you make the best decisions.
What research did you do for the business beforehand? Would you recommend it?
I recommend benchmarking within and outside of your field. I love watching videos about digital marketing and really understanding the importance of the digital space in this very digital era. Finally, I would look at all of the administrative details of your company like permits, licenses, and tax information. Don’t let this stuff intimidate you from starting, just start!
“Insecurities, doubts, and fears will always exist, don’t let them paralyze you. Do it afraid. ”
How did you find the first hairstylists that you partnered with? Did you have any bad experiences? What did you learn and what advice do you have for other founders looking for trustworthy partners?
Omg, I’ve had my fair share of terrible experiences with business partners. USE CONTRACTS! Make sure agreements are legally binding and that you are incredibly transparent with all of the terms. Hire slow, fire fast. This means take your time hiring, do several interviews, and invite other people in the team or in your community to do interviews with you. Finally, hire and fire based on the values you defined for your company. It’s nothing personal, if someone doesn’t align with the values of your company, they will bring down team morale and potentially ruin a relationship with a client.
How did you fund the company?
I used a lot of my savings, actually all of my savings! I also pre-sold appointments and apparel using crowdfunding platforms. I have bootstrapped mostly, but a year ago, we acquired a new partner who also an angel investor. Again, this person’s values aligned with ours and our relationship has been incredible.
How did you determine how much to pay yourself?
I still struggle with this so much and hope to be able to make peace with it soon. I actually didn’t pay myself until like two years in. It’s really a symbolic payment more than an actual salary. I do have the business cover a lot of my expenses like phone, transportation, etc., and this is super important because it allows me to live a decent quality of life and be more present for my business.
I say, if you’re just starting, make sure you have savings that will support you for three to six months, so that you’re not putting a financial burden on the new venture. Then, it’s definitely important to create a salary or arrangement that will allow you to have peace of mind and concentrate on running the company. Finally, I say create a plan to get to that dream salary and work your way there.
How big is your team now, and what has the hiring process been like?
We started with the team of two, and now we are a team of nearly 40 people. As I mentioned before, hire slow, fire fast and let your values guide the way. I had lots of experience hiring from being a project manager in the nonprofit world for many years. Interviews should be a two way conversation and not an interrogation process.
Did you hire an accountant?
I hired an accountant late in the game and it cost me thousands if not hundreds of thousands! Get a CPA early in the game, learn the taxation system in your state and country. Get an online bookkeeping platform and keep all receipts and the books organized. When you can afford it, get a financial advisor who has experience with small businesses and can help you make sure your prices are right and identify what new strategies need to be implemented. Learn early what your point of equilibrium is, this is how much you need to make to break even. This will help you come up with a number of what you need to make a month, a week, a day, and even per hour. Be comfortable and in control of the numbers. It will empower you to make better decisions.
What has been the biggest learning curve during the process of establishing a salon business?
Definitely human resources. It’s not easy putting a dream team together.
How did you promote your company? How did you get people to know who you are and create buzz?
I created a community before I had a business and this helped tremendously. I also created a lot of buzz surrounding my activism, which got me a lot press. Social media has been instrumental, but more for my community-building than the actual random reach. Create good free content, give value to your potential clients. I’ve had a marketing team since the beginning. She worked for free for a while, now she owns 20% of the company. Hire a publicist as a consultant even if just for an event to get you in the media or for one to three months, if you can’t afford it. Marketing is important, but not more than the quality of what you’re offering and the customer service experience. Word of mouth is GOLD.
Do you have a business coach or mentor?
I didn’t for years. Get one when you can afford it, in the meantime there is Youtube.
“It’s important to have purpose and define it so that when things get really hard, you can always visit that “why.” ”
How has COVID-19 impacted your business operations and financials? What tactics and strategies have you put in place to pivot and ensure your business is successful through this period?
We had to close our stores. We pivoted by moving sales online and doing online consultations. We were very intentional about applying to as many grants and financial opportunities as possible, including pitch competitions, and I am grateful to have won the pitch competition for Create & Cultivate.
What short-term changes will be crucial to your business strategy long-term post-COVID-19 and what plans are you making for when we get back to “normal?”
We are definitely going to invest more on our online e-commerce experience. We plan on making sure we are generating revenue in lots of different ways and not just the salon experience.
What advice can you share for small business owners, founders, and entrepreneurs who are also reeling in response to COVID-19?
APPLY to everything! See what aspects of the business can be done online. Create a new product or revamp an old one that could be sold online. Give your community lots of free important content, with this you’re communicating how important they are to you. Check up on clients. Call your landlord and let them know what you’re doing to pivot and think of ways to negotiate the rent payments without being defensive. Honey pulls more bees.
For those who haven’t started a business (or are about to) what advice do you have?
Be curious. What do you love doing and would do for free because you love it so much? Now find a way to make this, or an aspect of this, your business.
“
Hire slow, fire fast, and let your values guide the way.”
—Carolina Contreras, Founder and CEO, Miss Rizos
What is your number one piece of financial advice for any new business owner and why?
Scale slowly, not too slowly, and listen to your clientele. Don’t get into a bigger store or buy a ton of inventory you don’t need. Cash is king, so don’t just go crazy on making your overhead bigger if you don’t know how it’s going to get paid. It’s not magic, it’s strategy and planning. Robin Sharma says vague planning equals vague results. Strategizing and planning in advance, allows you to make the best decisions about growing your business. Take risks, but smart risks.
If you could go back to the beginning with the knowledge you have now, what advice would you give yourself and why?
Get a CPA and make sure to always use contracts!
Anything else to add?
Being a business owner is scary! There are so many responsibilities. So it’s important to have purpose and define it so that when things get really hard, you can always visit that “why.” Insecurities, doubts and fears will always exist, don’t let them paralyze you. Do it afraid. The worst thing that can happen is that the business fails, but you’ll learn in the process and will gather tools, resources, and networks to do it better the next time.
Enter to win a $10,000 grant for your small business
We're dedicating proceeds from our Digital Beauty Summit ticket sales toward a $10,000 grant for a small business owner in the health and wellness industry, including beauty, health and wellness, and self-care. We'll be selecting three finalists to pitch their businesses LIVE to a panel of judges for a chance to win the grant. Want in? Click here to check out the official rules and apply by Friday, July 17, 2020 at 11:59 PM PDT.
Up next: 32 Black Female-Owned Brands and Entrepreneurs to Support Now and Always
MORE ON THE BLOG
5 Black Women Changing the Investment Landscape
They’re breaking the VC ceiling, stacking the odds back in their favor, and putting the dollars into the businesses who need it most.
Statistically, female-led and owned businesses make more money, but women are still underfunded, especially women of color. Out of $85 Billion in VC funding in 2017, only 2.2% went to female founders, and every year, women of color get less than 1% of total funding. And Black women-led startups get even less. According to a 2016 study, of the 0.04% of Black women-led startups, they only raise an average of $36,000 in funding (or about .01% of the money pulled in by the average successful startup). Of the 88 tech companies featured in the study, only 11 had raised $1 million or more.
But when you hear that women of color account for 89% (1,625) of the new businesses opened every day over the past year, the numbers just don’t add up. However, these five women are changing the game by becoming investors themselves. They’re breaking the VC ceiling, stacking the odds back in their favor, and putting the dollars into the businesses who need it most.
Read on to learn more and get ready to pitch your business.
Arian Simone, Founder & CEO, Fearless
Serial entrepreneur, philanthropist, angel investor, best-selling author, and marketing expert, Arian Simone is on a mission to change the glaring inequality in the venture capital industry that too often leaves black women behind. As the co-founder and investor in the Fearless Fund, Simone invests in WOC led businesses seeking pre-seed, seed or series A financing. It’s also the first VC Fund built by women of color for women of color.
Sarah Kunst, Managing Director, Cleo Capital
Just 4% of female-led startups are run by black women—Sarah Kunst is one of them. Despite the statistical odds, Kunst is the managing director of Cleo Capital with an impressive resume. The entrepreneur and investor (she has advised and invested in 40+ companies), has worked at Apple, Red Bull, Chanel, and Mohr Davidow Ventures, to name a few. The CC100 2019 honoree was also the founder of LA Dodgers-backed app ProDay, a subscription workout app that allows users to workout alongside professional athletes and fitness celebs. Oh, and she’s also a contributing editor at Marie Claire as her hobby. Kunst is a force to be reckoned with and she’s on a mission to change the odds and help more Black women achieve their dreams.
Arlan Hamilton, Author of It’s About Damn Time, Host of Your First Million podcast, and Investor
When it comes to inspirational stories, nothing comes close to Arlan Hamilton’s. She built her venture capital fund, Backstage Capital while homeless. Built quite literally from the ground up since 2015, Hamilton has raised more than $10 million and invested in more than 130 startups led by women, POC, and LGBTQ founders. She was the first Black woman non-celebrity to feature on the cover of Fast Company magazine in October 2018 and she just released her new book It's About Damn Time where she shares her remarkable journey from food-stamp recipient to a successful venture capitalist.
Arielle Loren, Founder, 100K Incubator
As the founder of 100K Incubator—the first business funding mobile app for women, Arielle Loren’s mission is to help 100,000 early-stage women entrepreneurs get funding for their businesses and scale to 100K+ in yearly sales. Loren helps early-stage women entrepreneurs get the funding and cost-effective business coaching they need to build the business of their dreams.
Download her 100K Incubator App.
Kathryn Finney, Founder and CEO, digitalundivided
Photo: Courtesy of digitalundivided
Inc. Magazine called her “one of the most influential women in tech” and it’s easy to see why. After selling her company, TBF GROUP—one of the first influencer media companies—Kathryn Finney launched digitalundivided—the only space and program dedicated to the growth of high-growth tech businesses founded by Black and Latinx women through the startup pipeline from idea to exit. Since 2013, DID has impacted thousands of people and helped raise over $100 million in investments. But on May 22, Finney wrote an essay on why she was leaving digitalundivided and what she plans to do next. “I hope to change the narrative that leaving something, especially for talented black women, is a negative event,” she wrote. “We deserve to be our full selves like everyone else. I know I will.”
Know of another Black woman changing the investment game? Share it with us below and we’ll continue to update this list.
MORE FROM THE BLOG
How to Talk About Money With Your Significant Other (No Matter How Stressful the Times Are)
Have a brave, productive, and affirming conversation.
Photo: Jack Sparrow for Pexels
Whether you’ve been together for years or are just starting to date, talking about money with your partner can be fraught at any stage of the relationship.
In fact, it’s often harder to bring up personal financial beliefs than it is topics like your sex life, politics, or even religion. During a pandemic, it’s even more challenging, yet deeply necessary. With so many households losing one or both incomes or simply feeling anxious about money, now is the time to foster open communication with your partner about money and how it makes you feel.
As a financial therapist, Amanda Clayman, a financial therapist and Prudential Financial’s wellness advocate, is here to guide couples through this conversation all the time and is here to tell you that you are not alone and it gets better. With practice and an emotionally aware approach, you can navigate financial power dynamics, underlying assumptions, insecurities, and conflicting money styles and actually use money to bring you closer together than before.
Here are some tips to get you started.
Take an Emotional Litmus Test
Money has a dual nature as a symbol and a tool in our lives. Before moving into a conversation about how you and your partner use money practically (to pay the bills, shop, etc.), consider what significance you symbolically place on money in your lives. Do you mentally tie your savings to your sense of self-worth? Or perhaps certain spending behaviors help you craft your personal image? These core meanings we attach to our money often go unexamined but can explain much of our emotional response when our financial lives are disrupted.
With the pandemic in full swing, job security uncertain, and markets moving up and down, it is normal to have a tidal wave of feelings. Take the time to acknowledge each one and think about why you are responding that way. Ask yourself what that feeling is trying to tell you about your values. By sharing these money triggers and truths with your partner, you can connect on a deeper, more meaningful level instead of squabbling about numbers.
Remember There Is No “Right” or “Wrong”
The way we choose to handle money is based on temperament, past experiences, and family learnings. These factors create a unique money style for each of us, and chances are, yours is not the same as your partner’s. Suspending judgment is essential in exploring money as a couple. Like any highly personal topic, the temptation to protect your own decisions by labeling them as objectively “right” is strong, but it is impossible for either of you to share the vulnerable details of your financial actions and feelings if this attitude is part of the conversation.
Get to know each other’s money styles and stories by asking what money was like growing up for your partner. What was their first financial memory? How did they hear money talked about as a child? The more you know, the more you can emphasize and see not only the logic but the emotional reasoning behind choices that may have puzzled you before. When you both step back from trying to convert the other to your money style, you open the door to more creative solutions and compromises.
Make It a Date—and Lean on Each Other
There never seems to be a good time to talk about money, even though it’s constantly on our minds. Take the awkwardness out of beginning the discussion by making regular monthly or bi-weekly “money dates” with your significant other. Try ordering takeout from your favorite spot or opening a bottle of wine so you can both look forward to the conversation instead of dreading it. In these times of uncertainty, you may feel the need to increase the cadence of your money dates to once a week or more. Just remember, when more stable times return, don’t give them up! Choosing to talk about finances when times are good will provide you with a sense of normalcy when you need to talk about it in times of stress.
These regular dates also allow you to keep each other grounded, especially during a crisis. Money is directly wired into our sense of survival, so when things feel out of control in our financial lives, we are wired to be reactive in a way that is not necessarily proportional to the actual threat. Consistently talking through these feelings with your partner will provide a perspective other than your own to gauge how well your emotions are matching up to reality. Gently support your partner and turn toward each other to decide on a healthy response to money stress and not make rash decisions in a silo.
In conclusion, personal finance can be one of the most emotionally difficult topics to initiate in a relationship, but the more you practice it, the less scary it becomes. In times of upheaval, like this pandemic, we have a choice to let our anxiety drive us apart from our partners or have brave, productive, and affirming conversations. Times of difficulty are also opportunities to expand our empathy and find a deeper level of connection with our significant others. The important thing to remember is that this pandemic and subsequent financial uncertainty is neither you or your partner’s fault and will pass with time. In the meantime, Let’s come together on the things that matter, like supporting each other emotionally and remaining present.
About the Author: Amanda Clayman, a financial wellness advocate for Prudential Financial, is a widely recognized leader in the field of financial therapy. She helps her clients decode how thoughts, feelings, and associations shape their financial choices and identifies how those patterns serve and limit them in their lives. For over a decade Amanda has been helping people move beyond shame and frustration to find opportunities for personal growth embedded in the financial challenges they face.
MORE ON THE BLOG
Ask an Expert: How to Create Financial Wellness By Rebuilding Your Personal and Financial Life Post-Layoff
Money can be stressful. Not having money can be very stressful.
We’ve been spending a lot of time at Create & Cultivate HQ discussing how we can best show up for and support our community during this uncertain time. Community is at our core, and connecting with others through one-of-a-kind experiences is what we love to do. While the world has changed, our mission has not. We’re committed to helping women create and cultivate the career of their dreams, which is why we’re proud to announce our new Ask an Expert series. We’re hosting discussions with experts, mentors, and influencers daily at 9 am, 12 pm, and 3 pm PST on Instagram Live to cure your craving for community and bring you the expert advice you’ve come to know and love from C&C. Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the latest schedule, and hit the countdown to get a reminder so you don’t miss out!
“
Taking the time to create a financial roadmap will help you feel more in control and take the uncertainty out of your future financial picture.”
-Kathy Entwistle, Senior Vice President of Wealth Management, UBS Financial Services Inc.
It happened. It’s not a drill. And you most certainly aren’t happy. Why would you be though? You were part of a major layoff, a restructuring, or some other term your company arbitrarily chose to deliver bad news, and now you are wondering what to do. You don’t want to spend time on a government web page endlessly scrolling for answers on unemployment, and you definitely don’t want to breach the subject with your friends or family yet.
That is exactly why Kathy Entwistle, the senior vice president of wealth management at UBS Financial Services Inc., has outlined clear, actionable steps for you to take because while it is always acceptable to ask your network for help, a little preliminary research can bring a sense of independence and the power to stay positive and keep moving forward. Consider this your go-to source for handling all things personal and financial wellness for the next 30 days.
Find your best Spotify playlist, give yourself a hug, and let’s get to planning your next act!
Put Yourself First
Take some time to process the fact that your day-to-day life has changed. Not only is social distancing starving the human condition for connectivity and engagement, but your routine and purpose will have to be redirected, too. Find time over the next few days to look inside, reflect, pause, and even try meditating if this is not something you normally do. There are many great mediation apps, and most are offering free trials.
Set Your Goals and Objectives
Whether you choose meditation or some other form of internal reflection, one important guidepost in your checklist and planning will be your purpose and intention. Setting an intention as to your schedule, routine, and plan to get yourself back on track will be crucial. The less intentional you are about your goals and objectives, the less effective you will be in pursuing them.
Let’s start with your career intention and work our way to your financial intention. LinkedIn just became your new best friend (or same old friend for some who use it often). Reaching out through messaging, connections, and coffee breaks will provide exposure to the people who can provide proper guidance, advice, and possibly even the interview you wanted all along.
A great book to read to help guide you on your new career path is called, “What Color Is Your Parachute?” It will give you some great questions to ask yourself when assessing your career intention, and possibly, a new career path.
Assess Your Resume
Find time to recraft your resume and ways to be a storyteller rather than a fact board. Make sure your resume tells your authentic story and is crafted to the right target audience for jobs you will now be applying to. Let’s not forget; your current connections at your company are extremely valuable. Reach out to both those who have been laid off and those who haven’t, but you know well. Their recommendations and willingness to help you on your next path are not to be overlooked!
Review Your Financial Plan
You want to first reacquaint and understand where you stand financially. How much you have, how much you need, and where you can pull cash flow from. Is it your portfolio kicking off dividends or coupons from stocks and bonds? Do you have an emergency fund with three to six months of easily accessible funds? Do you have anyone who is depending on you?
Make sure to take a look at your credit card statements or activity online. This will tell you where you might be able to cut costs, like shopping for clothes online or ordering takeout. Just as you would block off time on your schedule for meetings, block out time on your schedule to review your plan, we might even suggest you accompany it with a matcha or your favorite cold brew.
Review Your Severance
The standard is two weeks of severance for every year you have worked at the company, but that is not mandatory. Make sure you take the time to understand what they are offering you, you are even permitted to try and negotiate.
Also, check to see about your health insurance coverage. Will your employer be providing Cobra coverage and for how long? If you have a partner or spouse, make sure to account for yourself on their benefits when appropriate.
Not everyone’s package will be the same, so focus your energy on yourself and what you can control. While we are still in the assessment stage, we are already moving forward. Keep that playlist rolling!
Review Your Debt
If you have credit card, auto loan, or student debt, now might be the time to conserve and preserve your cash. Don’t pay anything other than the minimum until you get back on your feet and are in a better position to get back on track and put together a plan to reduce your debt. These are debts that you will want to be able to eliminate once you have your cash flow back in place and you have an emergency fund set aside.
Map Out a Savings Strategy
It might seem that much more difficult to worry about your day-to-day expenses let alone remember to stash away some for later, but it is important to keep saving, even if you have to decrease your contributions to your savings account. Ideally, you would not be selling any of your investments to fund your day-to-day expenses so you can continue to let your nest egg grow, however, we realize that you might need to sell some investments to get by.
Come Up With a Selling Strategy
You will want to be aware of any tax impacts of selling investments with unrealized gains. Unrealized gains are taxed at capital gains, instead of your higher ordinary income rates, and could cause an even larger burden if you don’t have the funds to pay the taxes. You will also want to keep in mind your long term investment strategy. If the investment has good prospects for future return or it is an investment providing cash flow, you might want to rethink selling that position just for liquidity.
Consider Borrowing
Think about borrowing, as long as the rate of return will outmatch the rate of borrowing and opportunity costs. For example, rather than selling your investments to access cash, think about keeping your long term investment strategy running and borrowing for short term liquidity. When you get back on your feet, you will be happy to see your nest egg was compounding for a longer time and without any tax drag or reduction in size.
Money can be stressful. Not having money can be very stressful. Taking the time to understand your financial picture and take the steps necessary to create a financial roadmap will help you feel more in control and take the uncertainty out of your future financial picture.
About the Expert: Kathy Entwistle is the senior vice president of wealth management at UBS Financial Services Inc., providing straightforward financial advice tailored to the life you lead. Kathy has been in the financial services industry for more than 25 years. A former stay at home mom who donated her time teaching local financial classes to women, she rose to the heights of being named a "Forbes America's Top Women Wealth Advisor" in 2017 and 2018. As a seasoned multigenerational practice within UBS Private Wealth Management, Kathy, along with her son and the rest of her team, has guided generations of sophisticated families as well as senior executives and entrepreneurs through complex financial challenges.
Tune in daily at 9 am, 12 pm, and 3 pm PST, for new installments of Ask an Expert.
Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the schedule, and hit the countdown to get a reminder so you don’t miss out. See you there!
The CARES Act: What Are the Facts?
Here's what you need to know.
Photo: Vlada Karpovich for Pexels
The rapid spread of the coronavirus has led many states to mandate stay-at-home orders to protect the lives of hundreds of millions of residents. Although these social distancing measures are intended to safeguard the health of the public, the economy has come to a halt as a result. As of the end of April, over 26 million Americans have lost their jobs.
The CARES Act was enacted by Congress and signed into law on March 27, 2020, as a response to the COVID-19 pandemic’s effect on the economy. Coronavirus-related legislation is being quickly developed on both state and federal levels to help Americans during this unprecedented time, but the speed of the measures passing sometimes makes the new developments unclear.
Here’s a closer look at the CARES Act and how it can help you.
What Is the CARES Act?
CARES stands for the Coronavirus Aid, Relief, and Economic Security. The act is essentially a $2.3 trillion stimulus bill to support the U.S. economy through the coronavirus crisis by providing payments, tax breaks and loans to local governments, Americans, and businesses over the next decade.
The CARES Act is intended to provide help to the people and the local governments responsible for them. The main focus of the act is to preserve jobs and protect those who are unemployed due to the COVID-19 pandemic. It provides help in four parts:
Assistance for American Workers and Families: Payments to help Americans during the challenging economic times.
Assistance for Small Businesses: Funding to help small businesses maintain existing payroll and hire back any laid-off employees.
Assistance for State and Local Governments: Providing $150 billion in funding to state, local and tribal governments to navigate the COVID-19 crisis.
Preserving Jobs for American Industry: Employer and small business tax breaks, loans, and deferrals to help businesses keep their employees.
What Does the CARES Act Do?
The U.S. government has allocated almost $2.3 trillion for this act. The funds are meant to keep Americans employed or at least financially covered until they can work again, as well as encourage local governments and businesses to continue to operate. Some of the most notable spending includes the following:
Issuing one-time stimulus checks of at least $1,200 to qualifying taxpayers.
Expanding and extending unemployment benefits by $268 billion.
Providing $887 billion in loans and grants to local governments and businesses of all sizes.
$276 billion in tax cuts for businesses including payroll tax credits and pushing back payroll tax due now to 2021 or 2022.
Providing at least $1.25 billion in aid to each state impacted by the slowdown in the economy which has created a decrease in tax revenues the states would normally use to fund public services.
Providing $153 billion to healthcare facilities and support teams due to the impact of the coronavirus.
Allocating $42 billion for additional food stamps, housing support, and child and family services funding nationwide.
$40 billion for education-related spending, including the deferral of student loan interest for six months and maintaining student aid for existing students.
$20 billion for individual tax cuts to give the public a break as they struggle financially.
Who Does It Help?
The CARES Act helps nearly everyone. Employees, employers, independent contractors, the unemployed, small and large businesses, and states and local governments all benefit from provisions in the act.
If your small business is struggling, you may be eligible to receive payroll tax breaks and defer your payroll tax until next year. You may also qualify for loans and grants to keep your business afloat and your employees in place to weather the outbreak.
If you’re currently unemployed, your state’s unemployment benefits have been increased and extended. Even freelancers and independent contractors, who would not normally be eligible for unemployment in the past, are now eligible through the CARES Act’s Pandemic Unemployment Assistance program. Contact your state unemployment office for more details, since states have rolled out their independent contractor benefits at different times and with different conditions.
How Much Money Are You Eligible For?
Aside from the assistance mentioned, all households are eligible to receive a one-time stimulus check. The CARES Act provides all households with a payment of up to $1,200 per adult (with an income of less than $99,000 or $198,000 for joint filers) and $500 per child under 17 years old. That adds up to $3,400 for a family of four.
How Can You Apply?
You don’t need to apply to receive your stimulus check. If you file tax returns every year, you don’t have to do anything further. If you haven’t filed in the last couple of years because you don’t make enough to file, you can sign up to receive your economic impact payment through the IRS website. You can also track the progress of the payment, as well as choose to receive the check via paper check or direct deposit through the website.
If you collect Social Security, you also don’t have to do anything but wait. The IRS will use the information provided on Form SSA-1099 and Form RRB-1099 to generate your economic impact payment.
Navigating the Crisis
The current COVID-19 situation isn’t easy. Luckily, state and federal governments are taking measures to support you as the situation evolves. Do your part to help the economy by buying from small businesses to support them during the COVID-19 crisis. The outbreak is likely temporary, but its economic impact will remain for years.
About the Author: Jori Hamilton is an experienced writer from the Pacific Northwest who enjoys discussing social justice, empowerment, and how to improve the workplace. You can follow her on Twitter and LinkedIn.
MORE ON THE BLOG
Ask an Expert: How to Negotiate Lower Bills and Save Money Right Now
“The answer will always be 'no,' unless you ask.”
We’ve been spending a lot of time at Create & Cultivate HQ discussing how we can best show up for and support our community during this uncertain time. Community is at our core, and connecting with others through one-of-a-kind experiences is what we love to do. While the world has changed, our mission has not. We’re committed to helping women create and cultivate the career of their dreams, which is why we’re proud to announce our new Ask an Expert series. We’re hosting discussions with experts, mentors, and influencers daily at 9 am, 12 pm, and 3 pm PST on Instagram Live to cure your craving for community and bring you the expert advice you’ve come to know and love from C&C. Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the latest schedule, and hit the countdown to get a reminder so you don’t miss out!
Photo: picjumbo.com for Pexels
If you’re feeling anxious about the state of your finances right now, you’re not alone. The coronavirus pandemic is causing nearly 9 in 10 Americans to feel anxious about money, according to a new survey from the National Endowment for Financial Education. Almost half (48%) of individuals say that they’re worried about paying their bills (28% for both housing payments and utilities).
For tips on how to negotiate lower bills and save money right now, we tapped none other than Nicole Lapin , the New York Times best-selling author of “Rich Bitch,” “Boss Bitch,” and “Becoming Super Woman,” for the latest installment of our Ask an Expert series. Read on for some of the highlights and be sure to follow Create & Cultivate on Instagram to tune into the next conversation.
Step #1: Reevaluate Your Spending Plan
There’s no one-size-fits-all solution for creating a budget, but as a general guide, Lapin recommends breaking down your income like this during COVID-19:
65% of your income should go toward essentials. (This is your rent, your mortgage, your car payment, your groceries.)
30% of your income should go toward your endgame. (This is your retirement plan, your emergency fund, and anything else that’s for “future you.”)
5% of your income should go toward extras. (This is your Netflix subscription, your morning latte, etc.)
Step #2: Negotiate, Negotiate, Negotiate
“You can negotiate anything,” Lapin explains. “Your medical debt, your cable bill, your utility bill, your car insurance, the annual percentage rate (APR) on your credit card—ALL of it is negotiable. The worst thing they can say is ‘no,’ and the answer will always be ‘no,’ unless you ask.”
When you’re making calls to negotiate your bills and payments to places like your cable provider or your credit card company, Lapin recommends using the following key phrases to use to get the best deal possible: “What’s the best you can do? Can i talk to a manager? Can I talk to a supervisor?”
When it comes to your rent or your mortgage, there are a lot of relief programs available right now, including moratoriums on evictions and a pause on payments. That said, “the first thing you do when you talk to your landlord is ask for a deferment (3 months is pretty standard),” offers Lapin.
“Then, ask about what you’re signing up for: Will your payments be prorated? Or will monthly payments simply start up again?,” she notes. “And don’t be afraid to ask for a break in payment or ask to put your security deposit toward your payments.”
Psst… For more insights on how to negotiate from Nicole Lapin, sign up for her free scripts and templates at nicolesfreebies.com.
Step #3: Get All the Benefits You Possibly Can
“There is no shame in the unemployment game,” Lapin reminds us. "Careeronestop.org is the best place she’s found to apply for unemployment. “Click on the COVID button and go to your state, go through all the prompts, and apply for unemployment.”
If you’re a small business owner who hasn’t been approved for a loan through SBA (the U.S. Small Business Association), don’t forget about credit unions and fin-tech companies. “Apply through Paypal, Square, or Cabbage,” Lapin recommends.
Then, go after all the grants. “Grants.gov is the best place to find a treasure trove of all the grants out there,” says Lapin. “The more niche and random you can get, the better (the PEN organization for authors and writers, for example).”
Last, but not least, find out when you’re getting your stimulus check. “Go to irs.gov/getmypayment to look up the status of your payment,” says Lapin. You can also find out if you can expect a direct deposit or a paper check in the mail.
About the Expert: Nicole Lapin is the New York Times best-selling author of “Rich Bitch” and “Boss Bitch.” She has been an anchor on CNN, CNBC, and Bloomberg and hosted the nationally syndicated business reality competition show, “Hatched.” Her third book, “Becoming Super Woman,” is out now. She’s also the founder of personal finance masterclass The Money School and co-hosts the “Hush Money” podcast on iHeartRadio.
Tune in daily at 9 am, 12 pm, and 3 pm PST, for new installments of Ask an Expert.
Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the schedule, and hit the countdown to get a reminder so you don’t miss out. See you there!
5 Strategies to Get & Stay Out of Debt
With careful, actionable planning, consumer debt can be a thing of the past.
The coronavirus pandemic is causing nearly 9 in 10 Americans to feel anxious about money, according to a new survey from the National Endowment for Financial Education. 54% of people polled cite not having enough money saved as being the number one stressor—but if you’re in a position where you’re able to put some money toward paying off your debts, you 1000% should.
Debt is a four-letter word—and, unfortunately, for many millennials, it’s a fact of life. But it doesn’t have to be that way! With careful, actionable planning, consumer debt can be a thing of the past. In a recent conversation with Sallie Krawcheck, the co-founder and CEO of Ellevest stressed the importance of paying off debt. “Get your credit card debt paid off because it’s leeching out wealth from you,” she cautioned us.
So, with that in mind, we’re sharing five ways to get (and stay!) out of debt, ahead.
Create a budget.
Chances are, not having a budget is what got you in debt in the first place. So this is a great place to start! Use a budget software like Mint or You Need a Budget, or put together a good old-fashioned spreadsheet! List all of your income, then break down each of your expenses into monthly, quarterly, and irregular categories. Aim to allocate 50% to necessities like rent and utilities, 30% to savings and debt repayment, and 20% to discretionary spending like groceries and restaurants. (Hint: the last category is where you should be cutting if you’re in debt!).
Reconsider that auto loan.
Multi-year car loans are a thing of the past. Instead of buying or leasing a car, consider Fair. They let you drive a car for as long as you want for an all-in monthly payment and cancel at any time, with no long-term commitment. Limited warranty, roadside assistance, and routine maintenance are included in the monthly fee, and you can do the whole process from your phone. Buh-bye, auto loan!
Start that side hustle you’ve been dreaming of.
Need some extra cash? Now’s the time to burn that midnight oil on your side gig. Or, if the startup costs are too high, there’s no shame in a part-time gig game. Your goal here is to get out of debt as fast as possible, so put in the work after-hours however makes sense for you!
Make your credit debt work for you.
Let’s talk dirty: Credit card debt is not ideal. But for many of us, it’s a reality. First things first: Call your card company and ask for lower rates on your cards while you pay them off. It doesn’t hurt to ask! If you’re not able to get a low enough interest rate, look into a balance transfer to a zero-interest card and make a “get out of debt” plan that allows you to pay off your card by the time the no-interest promotion ends.
Apply the debt ladder strategy.
If you’re in debt on more than one account, start by paying off the balance on the highest-interest rate account while paying the minimums on your other accounts. When that account is paid off, move on to the next-highest interest rate, and so forth. This method, while at odds with the debt snowball method of debt repayment, allows you to get out of debt while paying the least interest possible. Repeat it until all of your debts are paid off, and then…
Stick to your budget! The only way to stay out of debt is to plan to stay out of debt. So ditch that auto loan, call those credit card companies, and keep yourself in check. Happy planning!
This post was published on May 27, 2019, and has since been updated.
MORE ON THE BLOG
Hey, Tech Savvy Self-Starters! Here's What to Expect at Our Money Moves Digital Summit
Our first-ever digital conference.
Photo: Angelica Marie Photography
One word we've heard a lot over the last few weeks is PIVOT! The world has changed, the way we do business has changed, and now, more than ever, we need to come together as a community. We’ve been spending a lot of time at Create & Cultivate brainstorming ways we can show up and support you during this uncertain time. Community is at our core, and connecting with others through one-of-a-kind experiences is what we love to do.
And while the world has changed, our mission has not. We’re committed to helping women create and cultivate the career of their dreams, which is why we’re proud to host Money Moves Summit, our first-ever digital conference to help small business owners build, grow, and pivot in the new normal. We always bring our A-game but our lineup is stacked—Chelsea Handler is taking the virtual stage to buoy our spirits and get real about her career highs and lows, staying positive in a pandemic, and why humor is the best coping mechanism. You don’t want to miss this one!
Read on to discover everything we have in store for this jam-packed day and get your ticket ASAP!
THE DATE
Saturday, May 2nd, 2020
TUNE IN FROM HOME
First things first! On the morning of the summit, Saturday, May 2nd, an email with your link and password to access the exclusive Money Moves Summit site will be waiting in your inbox.
Money Moves Summit is made up of pre-recorded video sessions and live video sessions that will be hosted via Zoom. We recommend that you have a strong WiFi connection and find a comfortable place to tune in from home. Money Moves is optimized for desktop, so it is best viewed via a computer or laptop, rather than a tablet or phone.
While the live content is specifically designed to be watched in real-time, you’ll be able to access and view it for 72 hours after the event (Insiders, you have all-access even after the 72-hour cutoff!).
C&C INSIDERS’ PERKS
Our Insiders get a ton of perks at all our events—and our Money Moves Summit is no exception. As an Insider, you get free admission to our Money Moves Summit and you’ll have access to all of the panels and keynotes after the 72-hour cutoff via your C&C Insiders dashboard.
Not an insider yet? Well, don’t miss out—you can sign up here.
THINGS TO PREP AHEAD OF TIME
Here are a few things to prep before the big day so it goes off without a hitch:
Install Zoom on your desktop computer or laptop and test it out
Zoom tips:
Find a quiet place to tune in. Try to situate yourself in a small room that does not have an echo.
Try and stay away from noisy electronics and silence your cell phone and computer notifications
When possible, limit your internet connection to solely the device you’re using for the Zoom conference.
Set your phone to airplane mode, pause your television connection, ask others in your home to pause anything that may require a strong internet connection, etc.
Make sure you have a strong WiFi connection.
Download the workshop downloads so you can follow along with the expert. Your exclusive workshop downloads will be available on Saturday, May 2. Be sure to download them ahead of the workshops so you can follow along in real-time.
Grab a notebook and a pen—and keep your headphones handy just in case your roommate has other plans for the day!
Jot down any questions you have for the live workshops and mentor sessions.
Set aside your athletic gear and your mat (or towel) and fill up your water bottle for our morning moves session with Melissa Wood Health. (No equipment needed!)
Gather the ingredients for the happy hour cocktail workshop. (Recipe in the section below!)
THE SCHEDULE
Money Moves Summit is built just like our in-person conferences, which, of course, you all know and love. We have a stacked schedule with an A-list line-up of speakers, so we suggest taking notes along the way.
Want the full lineup? Check out the play-by-play schedule to map out your big day. It’s going to be HUGE so we recommend getting a head start on planning out your day now.
Morning Welcome with Jaclyn Johnson, CEO and founder of Create & Cultivate
8:50 AM - 9:00 AM PDT
Get Up & Go: A light workout to get your morning moving
9:00 AM - 9:30 AM PDT
*Watch whenever*
Expert:
Melissa Wood-Tepperberg | Founder, Melissa Wood Health
Morning Moves: Intention setting for the day ahead
9:00 AM - 9:30 AM PDT
**Watch LIVE**
Expert:
Koya Webb | Celebrity Holistic Health Coach and Author of “Let Your Dreams Make You Fierce”
Morning Keynote Conversation
9:30 AM - 10:00 AM PDT
*Watch whenever*
Panelist:
Payal Kadakia | Founder & Executive Chairman, ClassPass
Moderator:
Jaclyn Johnson | CEO and Founder of Create & Cultivate
Financial Workshop Powered by SoFi
Get Your Money Right™: Financial Strategies That Aim to Help Your Business Thrive
10:00 AM - 11:00 AM PDT
*Watch whenever*
Expert:
Lauren Anastasio | Financial Planner, SoFi
Your exclusive workshop download will be available on Saturday, May 2. Be sure to download it ahead of the workshop so you can follow along in real-time.
Mid Morning Keynote Conversation
10:30 AM - 10:50 AM PDT
*Watch whenever*
Panelist:
Shay Mitchell | Founder and Chief Brand Officer, Béis
Moderator:
Jaclyn Johnson | CEO and Founder, Create & Cultivate
Roundtable Conversation
The state of content creation in COVID-19: How brands and creators are pivoting in this new era of marketing
10:50 AM - 11:35 AM PDT
*Watch whenever*
Panelists:
Marianna Hewitt | Co-Founder, Summer Fridays
Lauren Bosworth | Founder & CEO, Love Wellness
Courtney Quinn | Content Creator, Color Me Courtney
Marie Forleo | CEO & #1 NYTimes Bestselling Author, Everything is Figureoutable
Moderator:
Reesa Lake | Partner and Executive Vice President, DBA
Roundtable Conversation Powered by Mastercard
Small Business Brainstorm: A meeting of the minds to chat through the state of being a biz owner
10:50 AM - 11:35 AM PDT
*Watch whenever*
Panelists:
Sonja Rasula | Founder, Unique Markets
Sarah Larson Levey | Founder and CEO, Y7 Studio
Tonya Rapley | Entrepreneur & Bestselling Author
Paige Midland | Owner and Buyer, Midland
Ginger Siegel | North America Small Business Lead, Mastercard
Moderator:
Sacha Strebe | Editorial Director, Create & Cultivate
Fireside Chat Sponsored by Dell Technologies
Post COVID-19: How do we lay down the foundation for success moving forward
11:35 AM - 12:05 PM PDT
*Watch whenever*
Panelist:
Cyndi Ramirez | Founder & CEO, Chillhouse
Moderator:
Jaclyn Johnson | CEO and Founder of Create & Cultivate
Workshop
Organization tips for WFH while in quarantine to stay productive and focused
11:45 AM -12:15 PM PDT
*Watch whenever*
Experts:
Clea Shearer and Joanna Teplin | Founders, The Home Edit
Your exclusive workshop download will be available on Saturday, May 2. Be sure to download it ahead of the workshop so you can follow along in real-time.
Fireside Chat Powered by Bümo
Mama to Mama: Surviving and thriving during the stay-at-home order
12:05 PM - 12:30 PM PDT
*Watch whenever*
Panelist:
Chriselle Lim | Influencer & Entrepreneur, Bümo
Moderator:
Sacha Strebe | Editorial Director, Create & Cultivate
Mentor Session
Live mentor sessions with experts who will be answering your questions in real-time via Zoom webinars
12:30 PM - 1:30 PM PDT
**Watch LIVE**
Mentors:
Arian Simone | Founder & CEO, Fearless
Maxie McCoy | Author, "You're Not Lost"
Jaime Schmidt | Founder of Schmidt’s Naturals and author of “Supermaker: Crafting Business on Your Own Terms”
Carolyn Rodz | CEO and Founder, Alice
Ginger Siegel | North America Small Business Lead, Mastercard
Katia Beauchamp | Co-Founder, Birchbox
Kristin O’Keeffe Merrick | Financial Advisor at O'Keeffe Financial Partners LLC
Wellness Session
Vision boarding and goal-setting for post-quarantine
1:30 PM - 2:00 PM PDT
*Watch whenever*
Expert: Camille Styles | Founder and Editor-in-Chief, CamilleStyles.com
Your exclusive workshop download will be available on Saturday, May 2. Be sure to download it ahead of the workshop so you can follow along in real-time.
Pitch Competition
Three finalists pitch to win $10,000 for their small business. Each finalist gets 6 minutes to pitch and 4 minutes to answer questions from the judges—ready, set, go!
1:35 PM - 2:05 PM
**Watch LIVE**
The Finalists:
To be announced!
The Judges:
Maxie McCoy | Author, "You're Not Lost"
Jaime Schmidt | Founder of Schmidt’s Naturals and author of “Supermaker: Crafting Business on Your Own Terms”
Alli Webb | Founder, Drybar
Arian Simone | Founder & CEO, Fearless
Ginger Siegel | North America Small Business Lead, Mastercard
Financial Workshop Powered by Ally
Plan It Forward. Prepare For Your Best Financial Future.
2:15 PM - 3:15 PM PDT
**Watch LIVE**
Experts:
Lindsey Bell | Chief Investment Strategist, Ally Invest
Emily Shallal | Sr. Director for Consumer Strategy and Innovation, Ally Bank
Your exclusive workshop download will be available on Saturday, May 2. Be sure to download it ahead of the workshop so you can follow along in real-time.
Roundtable Conversation
A conversation on how brands should be spending their marketing dollars during this time
3:00 PM - 3:30 PM PDT
*Watch whenever*
Panelists:
Tera Peterson | Esthetician & Co-Founder of NuFACE
Mari Mazzucco | Influencer Marketing & PR, OLLY
Steph So | VP of Digital Experience, Shake Shack
Nancy Twine | Founder & CEO, Briogeo
Cheryl Guerin | EVP, North America Marketing and Communications, MasterCard
Moderator:
Sherry Jhawar | Co-Founder and President, Blended Strategy Group
Workshop
From 0 to 100k: How to grow your following on a platform quickly and with authenticity
3:25 PM - 3:55 PM PDT
*Watch whenever*
Expert:
Natalie Ellis | CEO & Co-Founder of BossBabe
Your exclusive workshop download will be available on Saturday, May 2. Be sure to download it ahead of the workshop so you can follow along in real-time.
Afternoon Keynote
On pivoting and remaining positive as a business owner
3:30 PM - 4:00 PM PDT
*Watch whenever*
Panelist:
Bobby Berk | Interior designer and star of Netflix’s “Queer Eye”
Moderator:
Sacha Strebe | Editorial Director, Create & Cultivate
Digital Deep Dive
A conversation on the 5 things you need to know when transitioning your business to digital with Jenna Kutcher
4:00 PM - 4:30 PM PDT
*Watch whenever*
Panelist:
Jenna Kutcher | Podcaster and Virtual Business Coach
Moderator:
Jaclyn Johnson | CEO and Founder of Create & Cultivate
Wellness Session
Staying sane in small spaces and the hacks you need to thrive
4:05 PM - 4:35 PM PDT
*Watch whenever*
Expert:
Whitney Leigh Morris | Creator, Tiny Canal Cottage
Your exclusive workshop download will be available on Saturday, May 2. Be sure to download it ahead of the workshop so you can follow along in real-time.
Roundtable Conversation
The Three Rs: How to respond, recover, and reset to emerge stronger through the COVID-19 crisis
4:15 PM - 5:00 PM PDT
*Watch whenever*
Panelists:
Rachel Tipograph | Founder and CEO of MikMak
Sarah Kunst | Managing Director, Cleo CapitalJeni Britton Bauer | Founder and Creative Director of Jeni's Splendid Ice Cream
Denyelle Bruno | President and CEO of Tender Greens
Babba Rivera | Founder of ByBabba
Moderator:
Sacha Strebe | Editorial Director, Create & Cultivate
Roundtable Conversation
How the C-suite is coping with COVID-19 and what their strategy is for moving forward
4:15 PM - 5:00 PM PDT
*Watch whenever*
Panelists:
Ariel Kaye | Founder & CEO, Parachute
Alli Webb | Founder, Drybar
Morgan DeBaun | Founder & CEO, Blavity
Rebecca Minkoff | Founder, Rebecca Minkoff & The Female Founder Collective
Moderator:
Jaclyn Johnson | CEO and Founder of Create & Cultivate
Evening Keynote
5:00 PM - 5:30 PM PDT
**Watch LIVE**
Panelist:
Chelsea Handler | Comedian, Bestselling Author, & Activist
Moderator:
Allison Statter | Co-Founder & CEO, Blended Strategy Group
Cocktail Workshop
Time to celebrate your successes! Join us for a cocktail workshop with one of your favorite influencers.
5:30 PM - 5:40 PM PDT
*Watch whenever*
Experts:
Adrianna Adarme | Founder, A Cozy Kitchen
Cassie Winslow | Founder, Deco Tartelette
Recipe: Pink Grapefruit and Chamomile Palomas from Floral Libations by Cassie Winslow
Makes 1 Cocktail
Ingredients:
½ tsp Rose Salt (recipe below) or coarse salt
1 lime or grapefruit wedge
Ice Cubes
¼ cup [60 ml] fresh Ruby Red grapefruit juice
2 Tbsp Chamomile Simple Syrup (recipe below)
¼ cup [60 ml] tequila
Splash of soda water
½ tsp freshly grated orange zest
Fresh organic chamomile flowers for garnish (optional)
1 grapefruit slice for garnish (optional)
Rose Salt
Makes approximately ¾ cup [5 g]
Ingredients:
¼ cup [5 g] dried rose petals
½ cup [100 g] fine sea salt
Directions:
In a food processor or spice grinder, grind the rose petals for about 10 seconds until the rose petals resemble small flakes. Be sure not to grind them into a powder.
In a small bowl, stir together the salt and rose petals. For optimal flavor, wait about 1 week before use. Store in an airtight container at room temperature for about 1 year.
Chamomile Simple Syrup
Makes approximately 1 cup [240 ml]
Ingredients:
1 Tbsp dried chamomile flowers (or 1 bag chamomile tea)
1 cup [200 g] cane sugar
½ cup [120 ml] filtered water
Directions:
In a saucepan, stir together chamomile flowers or 1 tea bag, sugar, and water, and cook over medium heat. Simmer until the sugar has completely dissolved and the mixture has thickened into a syrup, about 5 minutes. Remove from heat and allow to cool.
Strain the mixture through a fine-mesh sieve set over a bowl, then transfer to an airtight container. Store in the refrigerator for up to 1 week.
Recipe: Frozen Strawberry Margaritas from A Cozy Kitchen by Adrianna Adarme
Serves 2
Ingredients:
1/4 cup water
1/4 cup granulated sugar
Kosher salt, for rim
6-8 ounces tequila blanco
2 ounces triple sec
2 ounces lime juice
2 cups frozen strawberries
1 cup ice
Directions:
In a small saucepan, set over medium heat, add the water and sugar. Mix and warm until the sugar has dissolved. Remove from the heat and allow it to cool, about 5 minutes.
Add about 2 to 3 tablespoons kosher salt to a shallow plate. Run a lime wedge around the rim of both of your glasses. And then dip them in the salt and set aside.
In a blender, add the simple syrup, tequila blanco, triple sec, lime juice, frozen strawberries and ice. Blend until smooth, about 1 minute. Divide amongst the two glasses and serve.
Recipe Notes:
Tequila: Use 6 ounces of tequila if you’re a lightweight and don’t love the flavor of tequila. If you’re a tequila lover, use 8 ounces in this recipe.
Strawberries: You can use fresh strawberries if you like. Freeze them on a baking sheet for at least 2 hours. And then you can transfer them to a freezer-safe bag/container until you’re ready to use them.
Music Session
10-minute Q&A followed by an exclusive three-song live performance!
5:40 PM - 6:10 PM
**Watch LIVE**
Artist:
Lennon Stella | Singer & Actress
Thank You & Pitch Contest Winner Announcement
6:20 PM - 6:30 PM PDT
GET SOCIAL
Stay tuned for exciting announcements and updates by following along on our social at @createcultivate. Tag @createcultivate and use the hashtag #CCMoneyMovesSummit for the chance to be featured in our Instagram Stories throughout the day!
Networking is a huge part of our event and our Create & Cultivate Money Moves Summit Attendees Slack Workspace is a great place to mix and mingle with your fellow Create & Cultivators before, during, and after the big day. We’ve created channels for every workshop and panel, as well as channels for international attendees, networking, and more!
TECHNICAL DIFFICULTIES?
Live chat with a C&C specialist on CreateCultivate.com. You’ll see a “Chat With Us” pop-up in the bottom right corner of your screen.
WE ARE SO EXCITED TO SEE YOU ONLINE! Who are you most excited to hear speak? Share in the comments below!
MORE ON THE BLOG
Ask an Expert: Jaclyn Johnson on Pivoting to Digital, Managing Cashflow, and Being Transparent During COVID-19
“Think about how you can move quickly and nimbly.”
We’ve been spending a lot of time at Create & Cultivate HQ discussing how we can best show up for and support our community during this uncertain time. Community is at our core, and connecting with others through one-of-a-kind experiences is what we love to do. While the world has changed, our mission has not. We’re committed to helping women create and cultivate the career of their dreams, which is why we’re proud to announce our new Ask an Expert series. We’re hosting live discussions with experts, mentors, and influencers daily at 9 am, 12 pm, and 3 pm PST on Instagram Live to cure your craving for community and bring you the expert advice you’ve come to know and love from C&C. Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the latest schedule, and hit the countdown to get a reminder so you don’t miss out!
Photo: Create & Cultivate
Our very own Jaclyn Johnson, the founder and CEO of Create & Cultivate, went live on SoFi’s Instagram this morning to talk all things pivoting in the time of COVID-19. In conjunction with Create & Cultivate’s daily Ask an Expert series, she joined SoFi spokesperson and career expert Ashley Stahl to chat through everything quarantine has meant for her small businesses (aka Create & Cultivate) and her employees.
Jaclyn talks community, the upcoming digital Money Moves Summit, and ways you can set yourself up for success post-COVID. Whether you are a business owner, just got laid off, or have a business you want to launch, Jaclyn has guidance for you. Read on for all the highlights and some killer advice on how you can come out on the other side of quarantine as your best self (without learning how to bake bread).
On pivoting…
“I think we’ve officially adjusted to the new normal.”
“As an event focused company, we had to pivot quickly to the digital realm.”
On advice for business owners feeling unsure…
“Before doing anything drastic, give it a beat. We’re in the middle of a transitional period where we’ll know more in two or three months where the market is going, where the trends are going, and what will be happening.”
“Number one, take a look at your business: Are their ways to transition into a digital world? If there is, double down on that. Think about what’s working and put all your energy into that.”
“Think about how you can move quickly and nimbly in this environment to keep money coming in.”
On how to nurture community…
“When it comes to community, it’s challenging. You don’t want to come off as ‘buy, buy, buy,’ but the reality is we’re in an economic situation where we need to be supporting small business owners and we need to be a part of that conversation.”
“It’s important to be authentic and to be vulnerable. Now is not the time to be like, ‘We’ve got it all figured out, we know exactly what’s going on.’ It’s about finding a way to be there for your community in a way that’s impactful and informative, but also realistic because everyone is going through it.”
On employee relations…
“It’s really important to be transparent about what’s going on and be over communicative and let them know that you’re figuring this out as well but keeping that line of communication open.”
“We have to shift the way we think, we have to shift the way we’re doing business. So really allow your team to bring ideas to the table.”
On navigating furloughs and layoffs…
“You don’t want a lot of voices in the room when it comes to decisions like this. It can be even harder to navigate these conversations.”
“This is, hopefully for a lot of people, a temporary situation. So, if you are on the other side of this, don’t take this personally as a ‘career fail’ this is a pandemic that we’re dealing with.”
“It’s about having your employees understand how the government can support them as well.”
“We’ll be coming back from this and businesses will want to hire because they will be incentivized to hire.”
On transitioning to online…
“What we’ve found is that people are spending so much time online and they want to better themselves.”
“People are trying to improve themselves through online content.”
“Everyone should be asking for help during this time.”
On keeping money in your business...
“One, look at your accounts receivables and see where you’re at with that—and look at what your late fees are if people are overdue to maximize that money that’s coming in. Two, think about, ‘Where am I spending each month and where can I reduce this cost?’ For us, there were things we used for events like Spotify and Rent The Runway that got nixed. We put everything on hold in that space. Three, cash flow is really important right now. Think about how you can make incremental dollars without spending on talent or consultants or whatever it may be.”
“One thing we’ve really doubled down on is Instagram ads because usually when you spend money on those you can make money. Think about how you can maximize your ad spend.”
“It’s about being really conservative with your cash flow right now.”
On the Money Moves Summit…
“The Summit is all about pivoting in the new normal. So, it’s about entrepreneurs, business owners, freelancers, creatives, or someone who got furloughed or laid off. It’s really for anyone who is looking to thrive, not just survive, post COVID-19.”
“Our event is $29.99 and all the proceeds are going to a grant for a small business owner. That is something we wanted to do not only because of what’s happening in the world but we wanted to give back to our community in some way.”
On providing value while working from home…
“I think what is important is being proactive and bringing things to the table. If you feel like you’re not getting your message across, create a list of the things you’ve got done or that you think we should be doing. Be proactive about it.”
On reconnecting with your purpose…
“What has historically happened in times like this is innovation, which is an exciting good thing that we can look forward to.”
“Use this time to think about what are people going to need coming out of this? Where is there space in the market? Where is there white space to take advantage of and that you can build something for? Also, what excites you and makes you happy?”
On making big changes…
“Think about what you want and then make a 6-month road map.”
“I don’t think now is the time to make rash moves. I think being strategic makes a lot of sense. But it’s important to look at things that aren’t working.”
On setting the foundation for a brand…
“I always say, ‘Think of your full-time job as your investor in your company.’ Look at your paycheck and see what you can put toward your next venture, and then understand what you need for a three-to-six-month runway for your business.”
“Start planting seeds, see what’s out there, see if there is interest.”
“Don’t launch a replica of what someone else is doing. Think through how you can put a spin on it or make it uniquely yours. Or look at what someone is offering and look at what is missing.”
“You cannot go into anything thinking, ‘What if,’ you have to go in thinking, ‘What’s next.’”
On the best thing to do for your business right now…
“Take a deep dive into your customer. See what they like, what they’re reacting to. I think this is a great time to poll your audience. Learn about your audience and what they want.”
On partnership and sponsors…
“Sponsorship is tricky right now. The people I am reaching out to right now are people I have really good relationships with, people I have worked with a couple of times or known for years.”
On generating creativity…
“Set up fun activities for yourself like a wine and paint night or gardening. It’s about taking time to enjoy little moments.”
“I think it’s important to manifest the future.”
Tune in daily at 9 am, 12 pm, and 3 pm PST, for new installments of Ask an Expert.
Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the schedule, and hit the countdown to get a reminder so you don’t miss out. See you there!
Ask an Expert: What Does the Small Business Stimulus Package Mean for You?
The editor-at-large for Inc. Magazine and Inc.com talks us through it.
We’ve been spending a lot of time at Create & Cultivate HQ discussing how we can best show up for and support our community during this uncertain time. Community is at our core, and connecting with others through one-of-a-kind experiences is what we love to do. While the world has changed, our mission has not. We’re committed to helping women create and cultivate the career of their dreams, which is why we’re proud to announce our new Ask an Expert series. We’re hosting discussions with experts, mentors, and influencers daily at 9 am, 12 pm, and 3 pm PST on Instagram Live to cure your craving for community and bring you the expert advice you’ve come to know and love from C&C. Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the latest schedule, and hit the countdown to get a reminder so you don’t miss out!
“
To speed up the process, you want to apply with a bank where you already have a relationship. I’d suggest trying your local bank first because they’re viewing this as a way to get new customers.”
—Kimberly Weisul, editor-at-large for Inc. Magazine and Inc.com
It’s no secret that small businesses are hurting right now. Local restaurants, salons, and fitness studios across the country have closed their doors in order to help flatten the coronavirus curve and contain the spread of COVID-19, and needless to say, closing shop has put untold financial strain on these businesses.
In previous installments of our Ask an Expert series, we’ve covered how to get financial relief as a small business owner, how to pivot to digital even if your business isn’t online, and how to support small businesses right now (even if you can’t afford to spend a dime). In today’s segment, we tapped the editor-at-large for Inc. Magazine and Inc.com, Kimberly Weisul, to talk us through what we need to know about the small business stimulus package so far (note: information is still forthcoming from the government on when payments will be released, how independent contractors can apply, and more).
That said, here are some key takeaways from the conversation, including a breakdown of the Paycheck Protection Program and the Economic Injury Disaster Loan Emergency Advance.
The Paycheck Protection Program
Who can apply?
“Almost any business with less than 500 employees is eligible to apply. If you’re self-employed, an independent contractor, or someone who receives 1099 tax forms, you can apply starting this Friday, April 10. Small not-for-profits and faith-based business are eligible to apply as well.
What are the details?
“This loan is designed to be used especially for paying employees. It’s a loan that has the potential to turn into a grant if you use 75% of the money for payroll expenses and you keep your employees on for at least 8 weeks after getting the loan
You can apply for up to 2x the amount of your payroll for the previous year. It’s a two-year loan with a 1% interest per year. You don’t need to put up collateral or a personal guarantee and you don’t need to show that you tried to get credit elsewhere and failed.
More information will be available for independent contracts on how they can calculate their income this week—this information is not yet available.”
How do I apply?
“The loan is guaranteed by the U.S. Small Business Association (SBA), but you’ll need to apply through a bank. That said, banks aren’t set up for this yet. On the first day, Bank of America received 800,000 applications.
To speed up the process, you want to apply with a bank where you already have a relationship. I’d suggest trying your local bank first because they’re viewing this as a way to get new customers.
If your bank has told you they’ve already closed applications, keep in contact with them because they might open applications up again, but I would suggest that you start bank shopping. Keep in mind that the interest rate for this loan is fixed, so if you find interest rates higher than 1% that’s illegal.”
What else do I need to know?
“Be careful when you apply that you know what you’re signing up for. If you’re using an intermediary, you should read the fine print on all the documents. You’re sharing a lot of financial information so you want to be clear on what you’re signing up for.”
When can I expect to receive funds?
“The most optimistic projection I’ve heard for the release off funds is one week. We’re thinking at least two weeks.”
The Economic Injury Disaster Loan Emergency Advance (EIDL)
Who can apply?
“Almost any business with less than 500 employees is eligible to apply.”
What are the details?
“If you apply in good faith, you can ask for the $10,000 to be granted to you immediately, and if you eventually declined for the loan, that $10,000 is forgiven. So it’s well worth the time to apply for this loan.
It can only be used for working capital. For example, say you’re a restaurant, you can keep the employees on using the Paycheck Protection Program loan, but you can use the working capital to pay for inventory that’s spoiled.”
How do I apply?
“You can apply directly through The U.S. Small Business Association (SBA). Only about half the application form is up, meaning it’s really easy to apply for this lean quickly. This money would come directly from the SBA, in other words, you don’t need to have a relationship with a bank, unlike the Paycheck Protection Program.”
When can I expect to receive funds?
“The most optimistic projection I’ve heard for the release off funds is one week. We’re thinking at least two weeks.”
**”If you do apply for either of these loans, you need to make sure your bookkeeping is up to speed. Be very careful. If you do get one of these loans and you’re ultimately looking to have it forgiven, you will need to have the documentation to make sure that happens.”
**”If you already have an SBA loan (you may also know this as a 7A loan) through your bank, they’re offering deferment on payment for up to six months so that’s cashflow that you can have coming in right now. Talk to your bank—keep in mind that they’re very overwhelmed—and set this up.”
About the Expert: Kimberly Weisul is the editor-at-large for Inc. Magazine and Inc.com, where she writes features, opinion, and news stories about entrepreneurship, women, and technology. Before joining Inc., she was a senior editor at a BusinessWeek, where she directed all coverage of small business and entrepreneurship and was the founding editor of a spin-off publication, BusinessWeek SmallBiz. She is also the creator of The Fundery, the only searchable database of venture funds that have a mandate to invest in women.
Tune in daily at 9 am, 12 pm, and 3 pm PST, for new installments of Ask an Expert.
Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the schedule, and hit the countdown to get a reminder so you don’t miss out. See you there!
13 Things You Didn't Know You Can Write Off
It’s all about those deductions.
Photo: Smith House Photo
The world may be turned upside-down right now (thanks, COVID-19) and Tax Day has been moved to July 15, but we suggest you make the most of your quaran-time and get those taxes done!
We’re here to help ease some of the stress before you start scrambling to collect receipts and scour all your bank statements from the past year. Sure, taxes can be a drag (or something to look forward to if you know you’re bound to get a tax refund), but if you’re like most independent contractors or freelancers, you might owe a hefty amount of money to your state and the IRS.
However, there are so many things taxpayers fail to claim on their yearly taxes that could definitely help ease the fees that you owe back. To help you get a tax break, we’ve made a list of tax write-offs that many of us fail to claim and you may be overlooking, too.
Out-of-Pocket Charitable Deductions
If you contribute to your community and help with charitable work, or give charitable donations that include out-of-pocket costs, your good deeds may be rewarded with a tax write-off. If you’ve donated food to a soup kitchen, bought clothes for a women’s shelter, or even driven your car for charity, make sure to keep those receipts as they can work as a great tax deduction.
Home Office Costs
Now that we all WFH this deduction may be more useful than ever. So, your bed may not count, but if you use part of your home regularly and exclusively for business-related activity, the IRS lets you write off associated rent, utilities, real estate taxes, repairs, maintenance, and other related expenses. So if you are one of the lucky few working in your pajamas in the luxury of a home office, this year is to make the most of this write off.
Moving Expenses for Your First Job
Once you’ve moved past the job hunting phase and have landed your dream job on the other side of the town, or even the other side of the country, you’ll need to move closer to your job. If you’re moving farther than 50 miles away, you can write-off your moving expenses this season, including transportation.
Child Care Credit
If you have to leave your child, who is filed as your dependent under 13 years of age, with a sitter or at daycare while you’re at work, your child care expenses can serve as a tax credit, up to $3,000.
"Smart" Tax
If you are going back to school to sharpen your skills, are taking special courses for work, or have bought literature (books or magazines) that are relevant to your field of work, make sure to mark these as your “smart taxes.” Which, goes to show that any money that you spend on your education is always an investment.
Baggage Fees
Did you know you can get those annoying baggage fees right back into your pocket? Save the airline receipts from any checked baggage that you had to pay for, and mark them as a deduction when you file.
Energy-Saving Home
If you’re eco-savvy and have turned your house into an eco-friendly home in the past year, you can be rewarded with a great tax credit for your improvements. We know you went for paperless last year, but in this case, you might want to keep those paper receipts.
Financial Advisor/Accounting
If you have a financial advisor, tax preparer, or even paid to use a program like Quickbooks or Intuit to manage your finances and taxes, you can deduct those fees for the year in which you paid for them. If you still have your receipts from paying your preparer or the programs that you bought, make sure to include those in on your deductions!
Healthcare for Self-Employed
If you’re a boss lady of your own and are paying your own bills, like your own healthcare, then make sure to include your medical and dental bills in your deductions, as well as those bills for your family and dependents.
Phone Bill
If you’re always using your phone for work and have not yet put your phone bill as a part of your deductions, you have been missing out on getting some money back! Make sure that you keep track of what calls are work and which calls are personal as those will be very important to differentiate when it’s time to file.
Fostering a Pet
Some people can’t commit to adopting a pet, but if you were able to foster a pet in the last year, you can include expenses from the pound, vet, and even food when you’re filing for taxes. A good tax deduction can come from your charitable work.
Jury Duty
Jury duty may be a drag, but the pay you get from the court is tax-deductible if it was turned over to your employer. It all comes full circle!
Bad Luck, Accidents, and Damages
There are things that are simply out of our control, like your car breaking down, your roof caving in after a storm, or even you actually breaking a leg after your colleagues told you to break a leg at your client meeting. If you don’t have insurance and you have to pay out of pocket for repairs and medical bills, you can include them when you’re filing for taxes as a tax deduction. It’s not all bad luck after all!
This post was originally published on February 11, 2019, and has since been updated.
How to Build an Amazing Brand When You Have Zero Budget
Yes, it's possible.
Photo: Kaboompics.com for Pexels
When you're first launching a business, it can be difficult to know where to spend money, where you can save money, and how to get a little scrappy. Do you invest in that pricier domain name? Do you hire a designer to create your logo? Is it really necessary to consult an SEO pro to hone your content strategy?
Thankfully, the folks at GoDaddy know all about building a brand (and websites). So we picked their brain for insider tips and tricks that will pay off in the longterm, including some freebies you should 100% take advantage of. Keep scrolling for 10 zero-dollar ways to get your brand off the ground RN.
Treat your domain name like an investment.
The longer you have it, the more value it holds. Links pointing to your site are a major factor in ranking on search engines. As you accumulate more links over time, your credibility improves, and so does your search ranking. The age of your domain is also a ranking factor.
Changing your domain name has serious implications; it’s like changing your business name. If you change your domain, you’ll need to rebuild the credibility with search engines (which takes time), and reach out to all of the sites that linked to you to get the links updated (which they may not do).
Register a domain name early on in your business and stick to using the same domain name as your business evolves.
Use the same username/handle everywhere.
These days, your username is a core part of your online brand. Your business should be using the same username for Facebook, Instagram, Twitter, YouTube, TikTok, Snapchat, Pinterest, Etsy, and so on. This demonstrates a strong, professional brand that’s integrated across all channels. As with your domain name, choose your business username early on and treat it like an investment—you’ll earn links and mentions over time, all of which contribute to your business getting discovered.
Deciding on a name for a new business? Google it.
See what comes up. If there are existing businesses using the name you want, or even individuals who have a similar username for their social media accounts, try a different name. One of the perks of starting from scratch is that you can see what’s available and lock in your usernames across multiple platforms before your new business has even launched. Tip: Namechk lets you quickly figure out if a name is available across different domains and social media platforms.
Use consistent branding everywhere.
Aim for as much brand uniformity as possible everywhere that your business is present online. Use the same profile pictures, colors, fonts, image styles, etc. If you’re doing offline marketing, like flyers or business cards, your online branding should be consistent with that. An easy starting point is to lock in your brand color guide. Find a set of colors that reflect your business. Coolors is a free tool for generating color schemes.
Invest in design.
Visuals matter more than ever. If you’re not artistically inclined, hiring a designer can do wonders to give your online presence a professional boost.
If you’re just starting out and have minimal budget, sites like Fiverr or 99Designs can connect you with designers in your price range. If you can afford local market rates, look for designers in your area, especially if you have an arts or design school nearby!
Start off with something small, like images for your website or social media, to get a feel for the relationship. Once you’ve found a designer that you’re comfortable working with, start exploring bigger projects, like branding or site (re)design. (Have zero budget to work with? Canva is a great DIY tool for putting simple visuals together.)
Invest in photography.
The need for strong visuals carries over to photography. Poorly-lit, low-resolution snapshots are good for authenticity on social media, but you still need crisp, professional imagery for other purposes. If you’re putting photos of yourself, your team, your workplace, or your customers on the web, take photos specifically for that purpose. Smartphone cameras have come a long way, so if you prefer to go the DIY route, read some introductory tutorials so you understand the basics of lighting and composition.
Use simple, clean templates and layouts for your website.
Too much visual clutter distracts and overwhelms. A simple website layout, combined with strong design (fonts, colors, branding) and strong visuals (images, photographs) works wonders. Plenty of margin and whitespace between elements lets the page “breathe” and makes it easier for site visitors to skim over your content. Speaking of content…
Use your website to answer questions before they’re asked.
When someone hits a website for the first time, they start judging it very quickly, taking everything in at once, trying to determine if the site is relevant to them. When you review the content on your site, put yourself in the shoes of someone who doesn’t know a thing about your business, and think of the questions they might ask.
How do you introduce yourself? How do you prove that you know what you’re talking about? What are the benefits of the things you’re trying to sell – why should the visitor care? Why should they trust you? What are others saying about the products you sell, or the services you provide? What about other FAQs, like return policies, or customer support? Use those questions to guide your site’s content.
Collect email addresses.
An email mailing list is one of the greatest assets you can develop through your website. And you can segment the list based on your relationship with the person.
Are they someone who follows you on social but hasn’t bought yet? Are they a customer? Are they a loyal customer who’s repeatedly bought from you? Maybe they’re an influencer with an audience of their own?
You can send out highly relevant, targeted messaging that’s unique to each segment. And the more targeted and relevant your messaging is, the more effective it will be. We’ve got a bunch of tips on email marketing in the GoDaddy blog.
Measure everything.
Sign up for Google Analytics. Google Analytics will give you visibility into where visitors are coming from, and what visitors are doing once they’re on your site. This guide walks you through the process, including setting up goal funnels. Review your Analytics reports at least once a month, alongside your email mail list reports and other reports, to inform your planning.
We’ve incorporated all of these top tips into the new GoDaddy GoCentral website builder. It includes clean layouts you can customize for your business; a library of beautiful photographs to pull images from; support for a wide range of content types; integration with GoDaddy Email Marketing to build your email list; and support for Google Analytics to monitor website usage.
About the Author: Andy McIlwain is a member of the GoDaddy blog team looking after content & resources for web designers and developers. You can connect with Andy on Twitter, Facebook, LinkedIn, Instagram, and his personal blog.
This story was originally published on April 30, 2017, and has since been updated.
MORE ON THE BLOG
Ask an Expert: 5 Tips for Dealing With COVID-19 Anxiety From a Financial Therapist
Respond, don’t react.
We’ve been spending a lot of time at Create & Cultivate HQ discussing how we can best show up for and support our community during this uncertain time. Community is at our core, and connecting with others through one-of-a-kind experiences is what we love to do. While the world has changed, our mission has not. We’re committed to helping women create and cultivate the career of their dreams, which is why we’re proud to announce our new Ask an Expert series. We’re hosting discussions with experts, mentors, and influencers daily at 9 am, 12 pm, and 3 pm PST on Instagram Live to cure your craving for community and bring you the expert advice you’ve come to know and love from C&C. Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the latest schedule, and hit the countdown to get a reminder so you don’t miss out!
Photo: Courtesy of Amanda Clayman
COVID-19 has upended our lives in every possible way. Socially, emotionally, physically, and certainly financially. With many of us losing our livelihoods, facing medical bills, or simply enduring a disruption to our regular life, anxiety can seem more omnipresent than ever before. But even in these trying times, money anxiety does not have to take over our mental health.
To find out how to better manage our financial fears for the sake of our mental health, we tapped Amanda Clayman, a financial therapist and Prudential Financial’s wellness advocate, for the latest installment of our Ask an Expert Instagram Live series. She (rightfully) reminded us that, by being mindful, we can use this crisis as an opportunity to become more self-aware, examine our situation and tendencies, and practice prioritizing our financial and emotional wellbeing.
Scroll on for five tips for coping with COVID-19 anxiety, and head to the Create & Cultivate Instagram to tune into our next live Ask an Expert segment.
1. Feel All the Feels
Begin by taking a moment to acknowledge your emotions. This may seem unnecessary, but too often we try to think our way out of feeling problems, brushing over the core of the issue. If you are anxious about your recent lifestyle shift or financial security, let those feelings come forward, and identify them without judgment.
Are you scared? Sad? Experiencing loss? Bottling up these sensations can lead to burnout and exhaustion, but examining them will help you move forward. You may find this exercise will reveal how your feelings don’t always tell you the truth—by naming your emotions, you can calmly compare them to the facts at hand and gain a more balanced perspective on the situation.
2. Get Comfortable With Uncertainty
Overcoming any type of anxiety means learning to tolerate uncertainty. Much of the financial effects of COVID-19 are out of your hands, and when we focus on those externals, we increase our sense of helplessness.
Instead of ruminating on what the market will do tomorrow or when certain businesses will reopen, try to honestly determine what you can and can’t control at this moment. Derive safety and purpose from the things that are within your power, like your attitude, your purchasing behavior, and your daily activities.
It also helps to not project too far into the future. If you are going to anticipate anything, anticipate the need to be flexible, and save your energy so that you can be effective as the situation evolves.
3. Bring It Back to the Basics
Your “new” lifestyle may bring changes to your spending and earnings compared to “normal life.” Take a look at your credit card and bank statements to determine how much you need to keep yourself fed, connected and safe. This is the time to protect the essentials: medical, housing, and food. This isn’t a time to make drastic changes, but instead, hone in on which of these basic needs will provide financial peace of mind and build good habits for the future. If you begin to feel anxious about this pared-down way of life, remember this budget addresses your needs right now, and when circumstances change you will change your money choices with them.
4. Respond, Don’t React
Anxiety can prompt you to create busywork that will keep you distracted from your feelings but do not confuse activity with productivity. It’s natural to want to pounce on every anxious feeling, but these impulsive decisions rarely line up with strategic needs, and can actually lead to big regrets where finances are involved. Staying grounded, present and aware under pressure is key for your overall well being.
Be purposeful, not impulsive; cautious, yet hopeful. To practice, try making a list of your anxious thoughts as they arise, then step away and allow your mind room to breathe. Return to the list at a later time and review it with fresh eyes. Also, when faced with financial decisions, take the time to gather information and analyze your options before you act. Thinking about money is important, but it can be toxic if it takes over every hour of the day.
5. Remember, You are Not Alone
Anxiety can arise from not being able to rely on your normal problem-solving methods (hello, planners!), so this is the time to get creative. COVID-19 is a collective problem, not an individual issue, and while it is physically isolating, it still allows for open communication with those around you.
Personal finance can be private, but it’s also universal. Everyone deals with it, and in these times of crisis, we can be civic-minded and united in our support for one another. Step outside of your typical routine and reach out to friends to talk about your financial anxiety. Host a virtual happy hour to share knowledge, fears, and money ideas. Nothing seems as scary when you face it together.
After all, combating financial anxiety is not just about feeling zen and balanced, it takes consistent self-care and discipline of mind, especially during a crisis. We are all concerned about our ability to provide for our loved ones, but remember to also take care of yourself.
Fostering mental health, examining your emotions, connecting with those around you, and slowing things down will help you make financial decisions you can feel good about. We have the ability to engage with our money beyond the surface level and remain calm and collected no matter what the world throws at us. We will get through it together.
About the Expert: Amanda Clayman, financial wellness advocate for Prudential Financial, is a widely recognized leader in the field of financial therapy. She helps her clients decode how thoughts, feelings, and associations shape their financial choices, and identifies how those patterns serve and limit them in their lives. For over a decade Amanda has been helping people move beyond shame and frustration to find opportunities for personal growth embedded in the financial challenges they face.
Tune in daily at 9 am, 12 pm, and 3 pm PST, for new installments of Ask an Expert.
Follow Create & Cultivate on Instagram, check out our Ask an Expert highlight reel for the schedule, and hit the countdown to get a reminder so you don’t miss out. See you there!