5 Signs You're Not Being Paid What You're Worth

Photo: Christina Jones Photography

Make no mistake, trying to figure out how your salary stacks up against others in your field is a challenge. The unavoidable fact is: people get cagey when it comes to talking money. (Personally, I believe that being more open about these things will only help us close the pay gap, but that's an article for another day.) 

If you suspect you're being underpaid, getting a free salary report from Comparably or PayScale and scouring Glassdoor is a great start. But that's all it is—a start. To figure out whether you're being underpaid, you need to pay attention to the signs. Or, as career expert, bestselling author, and former editor-in-chief of Cosmopolitan (oh, and four other magazines), Kate White says, "You need to be a mercenary for information."

Here are the top five signs you're not getting paid what you deserve.

1. You Never Negotiated Your Pay 

I know this is difficult to hear because a large percentage of women don’t. But accepting this fact is the first step. "That's your first clue," says White. "It's a sign that you probably are being underpaid because often if you don't negotiate, you're leaving money on the table." Now, if you didn't negotiate, all is not lost! Make a commitment to yourself to never take a job without negotiating again. 

2. You’re Doing More, But Not Being Paid More 

This one might sound obvious, but employees let it slide all too often. Just recently a friend's workload was effectively doubled without a plan for a salary increase or title change. When she went to her manager to make a case for a salary bump, he threatened to simply take away her increased responsibility. Don't fall for this. If you're doing significantly more than the role you were hired to do, you deserve appropriately increased compensation. And if you can't get it at your current company, go get it elsewhere. 

3. It’s Been Two or More Years Since You Got a Raise

"Here's the problem: the market rate increases faster than the rate within a company where people may be getting 3% raises," says White. "I saw it happen to people who worked for me at different times, and as the boss, you felt bad, but often the company tied your hands.” 

“When the new person was coming in and was able to negotiate for a certain salary, sometimes it was better than people on the same level,” she explains. “But again, a company won't necessarily let you say, ‘Hey if I bring this person in at X, I hate the fact that this other person is only making Y.’ So if you've been at a company for awhile, you can practically bank on the fact that you are not doing as well as people coming in from the outside."

4. You Find Out the Salary of Someone in a Comparable Position  

This is less a "sign" than a fact, but it's worth mentioning. Again, talking to people about salaries can be tough, but there are ways to get the information you need. 

"You could ask a mentor or someone who used to work at your company and has since moved on," says White. "And maybe you could say it in a bit of a cheeky way, like 'If I told you my salary, what amount would make you think, 'Oh my God, she's an idiot?’ You're never going to get someone who left, especially in a lateral move, to tell you what their salary was. But I think if you ask in that way, sometimes people like to answer those types of questions."

"Or find people who have comparable jobs in similar companies,” suggests White. “Without asking what they make, you can say something to them like, 'Would you mind me asking you the range of X position at your company? I love my company but I'm just curious what the range is elsewhere.' I think people will often answer that as well."

However, proceed with caution. 

"I've been in situations where people found out salaries by snooping around or having conversations about it in the office, but if your boss finds out it really makes you look small," says White. "So I would say that's something to avoid."

5. You Have a Gut Feeling 

I have found this to be true in my own experience, and White confirms to trust your gut. If after a few months of watching and listening, you have the sneaking suspicion you're being underpaid, you probably are. 

"I think a lot of times our gut feelings about things like this are absolutely accurate," says White. "It's almost as if you're picking up clues on a lot of different subliminal levels. Maybe a guy on your same level invited people from the office over for drinks and you saw his apartment and realized, 'Wow, that's pretty nice.' Or you notice the vacations he takes. And sure, maybe he's got a trust fund. But all those little things that happen—the way your boss might be evasive, the spending habits of people on your level—all those things end up being almost imperceptible clues that on some subliminal level make your stomach twist a little bit. And you just sort of know.” 

"It could be from things people inadvertently say, but the point is that it's not just one thing—it's a combination of those various, vague little things, and what they add up to that speak to you on a subliminal level,” says White. “And a lot of what they say about intuition is connecting the dots and I think you should connect the dots in this case and listen to your gut."

For more advice from Kate White on negotiating and more, pick up a copy of her tell-all career bible, “I Shouldn't Be Telling You This: How to Ask for the Money, Snag the Promotion, and Create the Career You Deserve.”

Written by Kelsey Manning for Levo. 

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This story was originally published on April 19, 2017, and has since been updated.

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How to Keep Calm About Money When You Start a Business

Photo: Christina Jones Photography

Funding your business is like re-enacting the first scenes of a Bond film. It’s fast-paced, dramatic, and highly unpredictable. But in the end, you know you’re at the beginning of the story, and M(s)r. Bond (that’s you) is very likely to prevail. S/he overcomes the first of the saga’s challenges by acting nimbly and exhausting even the most obscure options. You’ve got this. 

Here’s how to suit up, fight on, and tackle any financial challenge (whether it be personal or entrepreneurial) with that calm, cool, and collected charm that only Bond can balance. Because after all, aren’t we all aiming to fight financial obstacles with precision and grace in a beautiful British sports car? 

#1 Be prepared. Be very prepared. 

Ask any of your more tech-centric friends who their favorite Bond character is and they’ll likely say, “Q, of course.” That’s because Q prepares Bond for any high-speed chase or “sticky” situation. Here’s how to prepare yourself (and your wallet) to be financially ready to take the leap (or free-fall) into entrepreneurship. (Let’s be honest, these are all great for personal money management too). 

1. Build up your credit score if it’s less than 700. You’ll want a good score to open your business account, which can open up some credit lines when you’re strapped for cash. Believe us, this isn't a matter of if, it’s a matter of when.

2. Secure a little nest egg. While we know some bada$$ founders who had very little sitting in the bank, having an emergency fund to fall back on personally can seriously help with your stress levels. 

3. Know your next 3 steps. Before even publishing your website, know what you need to 1. Start your business, 2. Get your first client and/or 3. Build a community of loyal, paying customers. Stress reduction is all about knowing where you’re headed and how you’ll get there. Think of these as your GPS coordinates to locate that beautiful Aston Martin. You need them to slide into that leather seat and zoom through the road ahead. 

#2 List out your priorities (and everything else).

Lists are our best friends. BEST FRIENDS. We have lists for to do’s, to don’t’s, how to do’s, etc., etc. Listing out your priorities might be less of your on-camera Bond persona, and more like your very real, Money Penny (equal bada$$) reality. That’s ok. Your lists will help reassure you at the end of a very long day that you did some good, you defeated some evil, and you know what’s left to accomplish.

Here’s how to get your financial priorities set: 

1. Find the right team. As much as you may think your Bond alter-ego can go it alone, you can’t. He doesn’t. Why would you try? Determine what your weaknesses are early and hire someone better suited to manage that aspect of the business. Even better, find a co-founder. They invest, they’re likely to take as little-to-no income as you, and they work just as hard. (Plus, you then have someone to talk to about all the obstacles that arise). 

2. Negotiate everything. Set a projected cost for all of your assumed expenses. Then mark down where you think you can save 10, 20, 50%. If you’re working with contractors, remember they need your logo just as much as you need their work. 

3. Build SMART (specific, measurable, achievable, relevant, time-based) goals and milestones. List out your necessary milestones for the next year and then set reasonable goals to help you hit those targets. This will help you decide what you should spend money on now and where you can press pause if needed.

4. Always ask yourself, “What will investors think?” If you’re going to rely on outside investment to help you hit your goals, make sure you’re developing a financial plan that’s aligned with your market, your audience size, and your investment goal. Try and learn how investors think (which is different than business owners!) to craft your messaging and pitch. You can be debonair as all hell, but if your gadgets don’t help you defeat the bag guy, you’ll be left vulnerable. 

#3 Be kind to yourself. 

After a long, grueling defeat of the villain, what does Bond do? He takes a vacation. And as you’re building up your Bond-like entrepreneurial persona, you should try to too (have you decided on your code name yet?). Taking time away from your business no matter what stage it’s in is always going to be hard. There will always be emails to answer, ideas to craft, missions to crush. And yet, you will never be your full Bond-self if you don’t take the time to recover. 

Here’s how we prioritize kindness and self-care even after the most trying days: 

1. Find something to pay attention to after a long day, that isn’t a screen. Nature, anyone?

2. List your fears and come back to the list often to assess and reframe. At the end of the day, you’re not fighting some evil foreign power who wants the world to end. Try reframing each fear into an opportunity. For instance: “I’m afraid we’ll fail.” Turns into, “If we fail, I’ll only be disappointed if I haven’t given this f&cker my all. If I have, I’ll know I’ve done something great.” 

3. Ask for help. We never do this enough and often by the time we have it’s too late and we’re already drowning in stress. Don’t wait. Find your support network of entrepreneurs, advocates, advisors, colleagues who can help you navigate even the darkest or most uncertain situations. 

4. Build your Bond Backbone with a daily mantra. Here are some thought starters: “I am strong. I am capable. I am right for this. I am wise. I manifest my abundance.”

And there you have it. Taking that entrepreneurial leap can be scary, but when you have the right mindset, a good plan of action, and enough certainty that at the end of your story, you’ll be stronger, more resilient, and ready for anything, you’ll find a feeling of empowerment that far outweighs any obstacle or villain that might stand in your way. Now go out there, embrace your inner secret agent, and become the titan of industry you were born to be.  

“H

aving an emergency fund to fall back on personally can seriously help with your stress levels.”

—Maia Monell, Co-Founder and CMO, Nav.it

About the Author: Co-founder and CMO Maia Monell has experience in growth marketing and brand strategy for developing software firms as well as in global women’s development. Prior to Nav.it, Maia worked with sports technology brand Bridge Athletic and holds an M.S. in Marketing Strategy & Innovation from Cass Business School. Maia's background in developing programs for professional female athlete campaigns and Brand Ambassadors gives her the unique experience to develop Nav.it’s authentic voice and brand promise.

About Nav.it: Nav.it is a banking app that helps you build healthy financial habits.  Pay down debt, automate savings, track spending, and learn how to more optimistically navigate your financial future with Nav.it's financial roadmap. Nav.it changes behaviors around money by providing personalized tools that build confidence in your money moves. Financial wellness starts here!

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This story was originally published on September 10, 2020, and has since been updated.

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Hey, Savvy Savers! Here's What to Expect at Our Money Moves Digital Summit Presented by Mastercard

Photo: Smith House Photo

Money. Let’s talk about it. We’re tackling the taboo topic and calling in the experts for some #realtalk about everything from building financial confidence and setting a budget to buying your first home and investing in your future. Join us on Saturday, May 15th for our Money Moves Digital Summit presented by Mastercard for a day filled with inspiring conversations, hard-hitting workshops, motivating mentor sessions, and a live competition to see three founders pitch to a panel of judges for the chance to win a $10,000 small business grant.

Like all of our C&C events, our lineup for Saturday is next-level. Venture capitalist Arlan Hamilton is taking the virtual stage to share her tips for how to secure the bag, then Rebecca Minkoff is sitting down with Jaclyn Johnson to discuss carrying a company through financially challenging times for a live episode of WorkParty, and Julianne Hough is taking the mic to talk about diversifying your income and managing multiple revenue streams. Trust us, you won’t want to miss out!

Read on to discover everything else we have in store for this jam-packed day, and if you haven’t already, be sure to buy your digital pass ASAP!

THE DATE

Saturday, May 15th, 2021

TUNE IN FROM HOME

First things first! On Saturday, May 15th, you’ll receive an email with your link and password to access the exclusive Money Moves presented by Mastercard event site. Please note: All content will go live on Pacific Daylight Time (PDT), including the launch of the exclusive Money Moves presented by Mastercard event site. To find out what time a session is happening in your time zone, use this handy time zone converter.

Money Moves presented by Mastercard is made up of pre-recorded video sessions hosted via Vimeo and live video sessions streaming 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 until Friday, May 21st (Insiders, you have all-access even after the cutoff via your C&C Insiders dashboard!). Tickets will be available to purchase until Wednesday, May 19th. 

THE SCHEDULE

Money Moves presented by Mastercard 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. Please note, all times are listed in PDT (Pacific Daylight Time), as C&C headquarters is located in sunny Los Angeles. To find out what time a session is happening in your time zone, use this time zone converter. 

NETWORK

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! 

Attendees will receive a link to access our Create & Cultivate Money Moves Summit Attendees Slack Workspace in our What to Expect newsletter on Wednesday, May 12th. This Slack channel will remain accessible until Friday, May 21st. Not familiar with Slack? Here are a few tips to get you started:

1. Download the Slack app to your phone, computer, or both

2. Complete your account profile with a profile photo, your name, and what you do

3. Public conversations will happen in the channels (ex: #networking) and are located on the left-hand side of the app. You can also start direct messages with others in the Slack workspace

4. Hit send too early on a message? Slack has an edit feature! Click the three-dot icon located on the right side of the message to open the drop-down of message options

5. We’re all about GIFs at C&C! Here are instructions on how to integrate GIPHY into your Slack account.

6. Our Slack workspace is a busy, happening place on the day of the event. Streamline the notifications you receive by using the “mute” feature on channels that don’t pertain to you. To mute a channel, simply open up that channel, click the three-dot icon labeled “more,” and select the mute option

7. Most importantly, be kind and respectful of others. If you don’t follow this rule, you will be removed from the Slack group

If you have any questions on the day of the event about navigating the schedule, accessing the workshop downloads, or anything else, you can drop them into the customer service channel in Slack.

THINGS TO PREP AHEAD OF TIME

Here are a few things to prep before the big day so it goes off without a hitch:

• Make sure you have a strong WiFi connection.

• 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 for an optimal experience.

    • 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. 

• Be sure to download the workshop assets so you can follow along with the expert in real-time. Note: Your exclusive workshop downloads will be available starting Saturday, May 15th via the exclusive Money Moves presented by Mastercard event site. 

• Don’t miss the opportunity to get real-time advice from small business owners, venture capitalists, and other experts during Mentor Power Hour.

  • Join the Mentor Power Hour Slack Channel and peruse the list of mentors who will be answering questions in real-time in hour-long Zoom webinars and choose your mentor(s). 

    • We have experts in everything from creating a budget to getting invested to setting financial goals. If there’s more than one mentor you want advice from, don’t worry! You can hop from session to session over the course of the hour if you’d like. 

    • Don’t forget to jot down any questions you have for the mentor sessions ahead of time! You’ll be able to ask your Qs in real-time by typing them into Zoom’s Q&A feature.

GET SOCIAL

Stay tuned for exciting announcements and updates by following along on our social at @createcultivate. Don’t forget to tag @createcultivate and use the hashtag #CCMoneyMoves for the chance to be featured in our Instagram Stories throughout the day! (Psst… Search “Create Cultivate” on Instagram to use our custom GIFs.)

C&C INSIDERS’ PERKS

Our Insiders get a ton of perks at all our events—and Money Moves presented by Mastercard is no exception. As an Insider, you get in for FREE and you’ll have access to all of the panels, keynotes, mentor sessions, and more after the Friday, May 21st cutoff via your C&C Insiders dashboard. Not an insider yet? Well, don’t miss out—you can sign up here. 

VIRTUAL GIFT BAGS

We know you want ‘em! Complete our post-event survey to receive an email packed with promo codes from some of your favorite brands, including Rebecca Minkoff, American Airlines, SoFi, ALLY, Fresh Vine Wine, Partake Foods, Melanie Marie Jewelry, 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? Which workshop are you looking forward to most? Tell us in the comments below!

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How to Take Control of Your Finances and Cultivate Confidence Around Money

Welcome to this special episode of WorkParty titled Money Talks, a Budget Broadcast Series in partnership with You Need a Budget (YNAB), designed to educate everyone on the power of building a budget.

Whether your financial goals are aimed at booking the vacation in Europe you’ve been dreaming about pre-lockdown, paying off your high interest credit card debt, or simply starting to save for the future—a budget (of all sizes) can help you accomplish those dreams.

To kick off our first of three Money Talks episodes, Jaclyn is joined by Jesse Mecham, the founder of YNAB, the app designed to be your best money-saving friend.

Get your notepad ready and press play on episode one! Your budgeting game is about to change.

Try YNAB Free for 34 Days

Subscribe to WorkParty and never miss an episode.

This Founder Has Raised Over $4 Million in Venture Capital From the Backers of Warby Parker, Casper, Peloton, and More

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Nicole Gibbons

In 2018, Nicole Gibbons launched a brand like no other: direct-to-consumer paint company Clare. After navigating the outdated paint industry on behalf of her clients for years, the longtime designer made it her mission to disrupt the space. “Frankly, shopping for paint has always been a huge hassle,” Gibbons tells Create & Cultivate. “There are thousands of overwhelming colors, too many product lines, the store environments are completely uninspiring, and there’s a lack of design guidance throughout the process.” So she set out to take the guesswork out of decorating by founding DTC paint brand Clare, which carries a curated selection of 56 designer-approved swatches.

But it’s not just about reinventing the fan deck. “At Clare, developing paint formulas that are healthier for our customers and the environment has been a priority since day one,” the founder explains. Clare’s paints are zero VOC, meaning they’re free of toxic carbon-based solvents that pollute the air and pose health risks, and Greenguard Gold-certified, meeting rigorous emissions standards, which is significant when you consider air indoors can be up to ten times more polluted than the air outdoors, according to the EPA. “People care now more than ever about the products they consume and the impact those products have on their health, their home, and the environment,” notes Gibbons.

Ahead, the founder shares how she’s raised over $4 million in venture capital funding for her clean and conscious DTC paint brand (including funding from the backers of DTC darlings by the likes of Warby Parker, Casper, Peleton, and more) and offers her best fundraising advice for aspiring entrepreneurs who want to replicate her success.

Can you tell us a bit about your background and what you were doing professionally before launching Clare?

Prior to launching Clare, I was an interior designer, running my own design firm and also doing a lot of work in the media as a design expert, including appearing for three seasons on a DIY home makeover show on the Oprah Winfrey Network. Before that, I spent 10 years working as a PR executive for a large retailer while dabbling in interior design on the side. I’ve always been passionate about the home space and about helping people create beautiful spaces. 

What was the “lightbulb moment” for Clare? What inspired you to start your business and pursue this path?

Frankly, shopping for paint has always been a huge hassle. There are thousands of overwhelming colors, too many product lines, the store environments are completely uninspiring, and there’s a lack of design guidance throughout the process. After realizing that the paint shopping experience was broken and outdated and that no legacy paint brands were focused on delivering a seamless shopping experience for their customers, I had the lightbulb moment for Clare. We’ve reimagined an entirely new paint shopping experience that’s easier, faster, more inspiring, and more convenient. Our mission is to help people everywhere create a home they love and to become the go-to paint brand for a new generation of consumers who are passionate about their homes.

Clare’s paints are zero VOC and Greenguard Gold-certified. Can you tell us why was it important to you to create non-toxic paints?

At traditional paint brands, this is generally an afterthought, but at Clare, developing paint formulas that are healthier for our customers and the environment has been a priority since day one. People care now more than ever about the products they consume and the impact those products have on their health, their home, and the environment. The cost associated with achieving our Greenguard Gold certification for indoor air quality, which is a top tier, EPA-endorsed green certification, was not inexpensive for us as a small startup. However, we felt this was an important step to take in order to give our customers confidence in our products. 

You’ve raised over $4 million in funding for Clare to date, no doubt you’ve learned a lot along the way. What are three crucial elements everyone should include in a pitch deck when raising money and why?

First, tell a great brand story. Investors see hundreds of deals, if not more, so it’s important to present your brand in a way that grabs their attention and tells a compelling story. You want investors to immediately have a clear sense of your brand, your mission, what sets your company apart, and why they should get excited about both you as a founder and your company. 

Second, tell a great numbers story. Your business model, or how you’ll make money, should be clear, as should the basic unit economics of your business and your growth projections. And these numbers need to be super compelling. A favorite line from one of our biggest investors is: There’s nothing like bad numbers to f*ck up a great story! 

Lastly, do all of the above with conciseness, clarity, and a laser focus on the most important takeaways that you want the investors to remember. 

Your investors include First Round Capital (an investor in Warby Parker), Imaginary (Net-a-Porter founder Natalie Massenet's fund), and Bullish (a Casper, Peloton, and Harry's razors backer). What advice can you share for entrepreneurs on partnering with the right investors?

At the beginning of your journey, the power dynamics feel very much in favor of the investors. They have the money you need and, especially when you’re a first-time founder, you tend to believe they also have the secret sauce that’s going to help your business get to the next level, especially if they’re a bluechip fund with a lot of cachet. In reality, that is typically not the case. Most investors aren’t super hands-on, will never know as much about your business or category as you do, and often they don’t add a ton of value beyond the check. Founders often feel pressure to take whatever money you can get, but the investors YOU choose and the energy and influence they bring to the table can make or break your success. So the best advice I can offer is to be picky about the investors you choose and bet on yourself over betting on any individual investor being the key to your success.

Startups led by Black women receive less than 1% of venture capital funding. Why do you think there is still so much inequality in the venture capital world, and what advice can you share for BIPOC entrepreneurs who are currently seeking funding?

The venture capital world is incredibly homogenous. I’ve met a ton of venture capitalists and, overwhelmingly, they’re white men who are already rich and often born into privilege as well. So when it comes to deal sourcing, they’re focused on their own insular network of people who come from similar backgrounds which naturally leads to an extreme lack of diversity. 

VCs are also taught to “pattern match,” which is to look for patterns in founders that mirror previous founders who have been successful, but there’s an inherent bias in this approach when all of their founders come from similar backgrounds. Data proves that diverse teams lead to higher returns yet it’s still difficult for VCs to get out of their insular bubbles and actually invest in diverse founders and teams. In order to create more equality in terms of who gets funded, funds need to diversify their own teams, especially at the partner level since partners are who ultimately make the investment decisions. This will lead to a more diverse pool of deals to source from, and in turn, more BIPOC entrepreneurs seeing their ventures get funded. 

For entrepreneurs of color seeking funding, I’d say to first focus on funds that have a track record of funding diverse founders. This might mean funds that have a specific diversity focus, or simply who have a more balanced representation of founders in their portfolios. Next, don’t be intimidated by any data that shows the odds may be stacked against you. Instead, let your passion and confidence in what you’re building guide your process. Finally, be relentless and don’t get discouraged by the “no’s.” Raising venture capital is an incredibly difficult and draining process for any founder and even those who are very successful at raising capital face a lot of rejection. Trust that the right investors will be aligned with your vision.  

What was your first big expense as a business owner and how should small business owners prepare for that now?

My first big expense was building out our website. I was lucky enough to find a team who really believed in me and the business and agreed to help start the high-level conceptual and creative direction work for the site without pay before I raised capital. Once I closed our financing, I was able to pay them properly. We started working on that before I actually put any physical product into production.

Photo: Courtesy of Clare

What are your top three largest expenses every month?

We don’t replenish inventory monthly, but during the months we do, that by far is our biggest expense. Payroll and marketing are our next biggest expenses. 

Do you pay yourself, and if so, how did you know what to pay yourself? 

Most people assume that being a CEO of a highly publicized company means you’re rich or you have a hefty salary, but most startup founders, especially at the early stage are grossly underpaid because everyone is incentivized to put as much value as possible into the business. I’m lucky that because we had an influx of capital from venture investors I was able to pay myself a modest salary, but the salary I’m paid is around a 60-70% decrease from what I was making before Clare and a huge short-term sacrifice. I basically pay myself enough to cover my monthly expenses and not much more. The hope when you’re building a company is that the upside will be significant so any initial sacrifice or temporary discomfort are both necessary but also well worth it in the long run.

Would you recommend other small business owners pay themselves? 

Absolutely. To the extent that you can pay yourself a liveable salary, you should absolutely do so. Running a business is incredibly stressful, and it will be difficult to stay focused on the business if you’re also highly stressed about your personal finances and don’t have enough money to cover your basic necessities. The only exception is that if you’re lucky enough to have someone else taking care of you financially (i.e., family support, a spouse, etc.) then, depending on your situation, you might be better served not taking a salary and investing everything you have into growing your business. It all boils down to your goals, your plans for growth, and what you need to get you to your next milestone. 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

With Clare, as a venture-backed company, the goal is to build a venture-scale business, so I knew there was no way I could do this on my own. I hired people as soon as I possibly could to help fill expertise gaps and also increase my bandwidth. When I started out, key hires included a digital marketer and head of supply chain since those were areas that needed a lot of attention and where I lacked the skills and expertise.  

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?

We have an outsourced CFO and an accounting firm who manage all of the day-to-day finances but keep a close eye on everything. In terms of tools, we use Quickbooks to manage our accounting. Google Sheets and Excel are tools of choice for building out reports to look at trends and gain deeper insights into how we’re doing. 

Where do you think is the most important area for a business owner to focus their financial energy and why?

This really depends on your goals. If your goals are growth then investing in marketing is probably going to be the most important area to focus on. If you have a highly technical product with a big innovation roadmap, you might invest in hiring engineers. If you have a capital-intensive supply chain, investing in building efficiency there might make the most sense. 

Do you think women should talk about money and business more? Why? 

Absolutely. Having collaborative discussions around business, finance, and sharing best practices with peers is often the best way to learn and grow.

Do you have a financial mentor? If so, how did you find one and do you think all business owners need one?

I’m lucky now that I do have people around me who I can go to for guidance, but I haven’t always. This is unfortunate because I feel like I could have prevented a lot of costly mistakes in both my business and personal finances if I had someone guiding me. I’ve had to figure a lot out of my own over the years, so if you have access to a mentor, lean on them to help you navigate all the things you don’t know. 

What is your best piece of financial advice for new entrepreneurs?

Ruthlessly prioritize what’s most important to your business and what’s in the best interest of your brand mission. When you’re running a young company, everything feels like a priority and so many opportunities come up that seem worthwhile, but when bandwidth is slim, you have to prioritize like a boss. Focus both your dollars and your human capital on the initiatives and opportunities that will propel your business forward and deliver the most value.

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79% of Women Are Feeling Weighed Down by Money and Stress—The Millennial Money Expert Is Here to Help

Photo: Courtesy of Tonya Rapley

One year into the COVID-19 crisis, women are more financially stressed than ever. 

Studies have shown that women typically suffer from more money stress than men, but the coronavirus pandemic has put even more of a strain on women. In fact, a recent survey by Fidelity Investments revealed 79% of women are feeling weighed down by money and stress, which is up from 67% last fall.

To talk about practical ways to take control of your finances, manage your money anxiety, and make smart money moves during these trying and stressful times, Jaclyn Johnson sat down with Tonya Rapley, a.k.a “The Millennial Money Expert” and founder of My Fab Finance, on this episode of WorkParty.

Tonya has completely changed the game, turning the once stuffy financial industry into a fun, familiar, and, dare I say, cool space. She’s been named the “New Face of Wealth Building” by Black Enterprise magazine, lauded as a modern “history maker,” and honored on Create & Cultivate’s CC100 List.

Scroll on to tune into the episode (and grab a pen because Tonya drops some serious knowledge!) and read on for just a few of the many, many mic-drop moments.

Subscribe to WorkParty and never miss an episode.

On setting your financial goals…

“Your financial goals should be based on what’s most important to you. Is it important to you to retire early and travel the world? Is it important for you to continue to work and build passive income and then retire? What’s most important to you?”

On assessing your unique financial situation…

“A lot of people want to do things the ‘right’ way because they’re afraid of doing things the wrong way, but right looks so different for so many people.”

On managing COVID-induced money anxiety...

“First, we have to question where that anxiety comes from and if it’s own or if it’s external or environmentally induced anxiety when it comes to our finances.”

“A lot of times it’s helpful to just go sit and look at the numbers. Sit down and look at your bank account, look at your expenses. Really face the numbers.”

On leaning on your support system…

“If you are dealing with things like a loss of income, then really lean on your support network. Be honest and transparent and ask for what you need.”

“Ask for what you need and don’t be ashamed to do it because everyone has seasons when they need support and help.”

“No one is going to judge you for what you’re going through. It’s a collective experience.”

On investing your money as a beginner…

“Start small. Use that money to learn. Don’t put it all in one place at one time and don’t go out and buy what is trending, such as Game Stop.”

“Don’t be afraid to hire someone else to do it. If you don’t feel comfortable doing it on your own or if you don’t have the space to learn.”

On her top three money tips for WorkParty listeners…

“Make sure that you’re saving. You always want to make sure you’re saving so you can be your own emergency fund.”

“Don’t overcomplicate your finances. Start with what’s simple and try to keep things simple for as long as possible.”

“If you don’t know how to do it, find someone who does.”

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The Fashion Industry Accounts for 4% of the Globe’s Greenhouse Gas Emissions—So These Founders Are Doing Things Differently

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Londre Bodywear

It’s no secret that fashion has a sustainability problem. But while the industry currently accounts for 4% of all global greenhouse gas emissions, consumers are advocating for change and spending their dollars accordingly, investing in brands that are committed to reducing their impact on the environment. Londre is the latest sustainable fashion brand to catch our attention at Create & Cultivate, and we’re not the only ones. The Canadian fashion brand recently received a $208K investment on “Dragons’ Den” (a.k.a the “Shark Tank” of Canada) and we’re eager to share the story behind the brand before you see it all over your Instagram feed (because trust us, you will).

Based in Vancouver, Ainsley Rose and Hannah Todd launched Londre in reaction to the startling amount of plastic pollution in the world's oceans. To date, the brand has recycled 100,000 plastic bottles off of the streets and beaches of Taiwan into their sustainable swimwear offering. But sustainability isn’t just about the planet for Rose and Todd, it’s also about the people. “Our products represent 360-degree sustainability, and this is something we heavily invest in,” Rose tells Create & Cultivate. “We believe that you can’t take care of the planet without taking care of its people, so ensuring our internal and external teams are treated fairly is critical,” Todd adds.

Here, the co-founders share how they bootstrapped the brand with an initial investment of just $15,000 and turned it into a business that generates seven-figure revenue.

Talk us through your bootstrapping process. How did you self-fund Londre, and would you recommend that route to other entrepreneurs today? 

AINSLEY ROSE: We took an initial $15,000 CAD investment from a close friend to help with our first round of samples. Since then, we’ve completely bootstrapped our business and have been self-sustaining. As a sustainable mission-driven brand our finances have to be looked at strategically to ensure that we can make choices that enact positive change and benefit both the planet and our business. 

HANNAH TODD: Since inception, Londre has seen a 300% year-over-year growth, and a big reason why is that we’ve been scrappy. This has helped us develop clarity in our business because sometimes having too much cash allows you to put a bandaid on a problem instead of fixing the issue from the start. This has also allowed us to grow organically, putting community first and ensuring market need. Not being beholden to a VC or large stake investor also has allowed us to work without an additional layer of pressure, and better tune into our intuition about what is best for our business. 

Can you share three crucial elements everyone should include in a pitch deck when raising money?

HT: Because we were pitching to someone we have a strong personal relationship with, our pitch was super simple. We didn’t even have a sample made yet. Ultimately, they chose to invest in us because they had faith in the values and ethics we hold as people, and less so in the product offering itself. Being empathetic, speaking from the heart, and having a good understanding of market trends helped us in our pitch. 

AR: The person who invested in us originally is still a trusted advisor and has been able to provide incredibly helpful insights over the years. 

What are some of the most common mistakes people make when raising money?

AR: I think the most common thing we see is valuing skills over the relationship. In choosing an investor, or business partner for that matter, ensuring that you feel comfortable communicating honestly and have a strong foundation of trust is key. 

HT: We also see people asking for too much too soon. If you are creative enough, you can likely get by with less than you think, and having too many controlling voices involved can complicate things.  

How much do you pay yourselves, and how did you know what to pay yourselves?

AR: Londre started out as a side hustle for Hannah and me that eventually became our main gig and source of income. I was working as a photographer, which allowed me to set my own schedule and develop a great network. I eventually stopped taking on new clients once Londre had reached a point where I felt comfortable taking a meaningful salary.

HT: I was working as a yoga instructor so also was able to make my own schedule. We chose how much to pay ourselves based on our lifestyle. To decide on our salaries we budgeted how much we needed each to live comfortable, satisfying, and sustainable lives in Vancouver and worked backward from there! We also allocated a bonus structure to celebrate when sales goals are hit. 

How did you decide what to pay employees? 

HT: Currently, we work with a team of contractors who are all small business owners in their own right. We find that this gives both parties more flexibility and freedom. We collaboratively decide on compensation and offer performance-based incentives. We believe that you can’t take care of the planet without taking care of its people, so ensuring our internal and external teams are treated fairly is critical. 

AR: We look to third-party certifications like Oeko Tex 100 for our fabric and work with Vancouver-based companies with an A+ Better Business rating to ensure that our ethical and sustainable mandate is met. Although working this way is more expensive than using a more traditional fashion model, ensuring value alignment in our brand has made our business thrive, generating seven-figure revenue and feels deeply rewarding. 

Where do you think is the most important area for a business owner to focus their financial energy?

AR: Our products represent 360-degree sustainability, and this is something we heavily invest in. We notice more brands are using more recycled materials and it’s something we love to see! However, if sustainability isn’t looked at from a holistic lens, it may easily be greenwashing. 

HT: For example, even if a product is made from recycled materials but isn’t functional and high quality, packaged using sustainable materials, and without a plan for the end of its life cycle, it ultimately will end up in a landfill contributing to further waste. We’ve focussed most of our financial energy on product development and quality control. Ensuring that our products are high quality and long-lasting is our first concern, not only from a customer satisfaction standpoint but also from a sustainability perspective. We just launched our first loungewear collection, The Essentials, and a lot of research went into finding fabrics and components that stay true to our 360-degree approach. 

What was your first big expense as a business owner?

HT: Our first round of samples. What we thought was going to be a $5000, two-month project turned into a $16,000 venture, nine months later. The first suit we created, the Minimalist in Matte Black, is still our biggest seller, so ultimately the hundreds of revisions were worth it. 

What are your top three largest expenses every month?

AR: Production costs (ethical manufacturing and sustainable materials); shipping and compostable and recyclable packaging; and digital ads (we actually only started running them in the last year). 

How much do you spend on office space?

HT: $0. We are fully remote.

How much do you spend on employee salaries?

AR: Contractors and our salaries: ~$25,000 a month 

How much are you saving, and when did you start being able to save some of your income?

HT: We as co-founders save about $1,000 a month each. We’ve only started paying ourselves enough to save within the past year. 

Did you hire an accountant? Who helped you with the financial decisions and setup of the business?

AR: Yes! We have an accountant who supports our year-end and we use QuickBooks for day-to-day accounting. 

HT: Ainsley’s fiance is a CPA and he’s stepped in to help us with inventory forecasting and budgeting when we need support with more complex financial modeling

What are some of the tools you use to stay on top of your business financials? 

AR: We use QuickBooks for our accounting. We also have a detailed model which helps us plan our inventory, forecasting, and budgeting. Additionally, we have a recurring calendar event monthly to go over inventory and budgeting. 

What do you wish you’d done anything differently in your financial journey as business owners?

HT: We overspent on in-person events. The most successful event we held was actually the least expensive, as connection trumps extravagant details every time. 

Do you think women should talk about money and business more?  

AR: Absolutely! There is so much stigma around gaining wealth, particularly for women. We’ve both taken courses by Lacy Phillips to break down any blocks and baggage we may hold around money and learn how to move into abundance. 

HT: We feel privileged to have a community of entrepreneurial womxn who we can talk candidly about finances and this has helped us immeasurably. 

Do you have a financial mentor, and do you think all business owners need one? 

HT: Our investor, who still has a small stake in Londre Bodywear, is our financial mentor. This relationship works for us because we can communicate openly with them and have been able to lean on their entrepreneurial experience. We check in every two months so we can ask general questions. 

AR: We don’t think you necessarily need a mentor because your intuition is best, but having a mentor who you can trust to gather advice from and see if it fits has been helpful for us. 

What is your best piece of financial advice for new entrepreneurs?

HT: Get super clear on your values. There are tons of shiny things to be distracted by but when you have a foundation of nonnegotiable sustainability (or whatever your chief value is) it allows for further clarity. 

AR: Also, don’t be afraid to negotiate and see what transactions you can do as trade instead of monetarily. Get creative with your trades! We asked for tons of help and in exchange would not only offer store credit, but also services that lined up with our skills. For example, Hannah was a yoga instructor and would offer a private yoga session in exchange for someone helping us build a financial model.  

What have been some of the hardest money lessons you've learned along the way? 

AR: We originally wanted to start our business in Bali. Our fabric and samples were stolen, and I was left waiting at the airport at 1 A.M. for the sample maker, who never showed up, and had nothing to show for a two-week-long trip. We ended up restarting in Vancouver (where we live), and now are able to have eyes on production. Keeping things close to home so you can directly oversee everything gives you more control over how your money is used.

HT: Wait until you have clear market approvable before creating a huge run of your product. We’ve always valued organic growth and doing small runs and which has contributed to increased demand and zero wasted product.  

What is your #1 money tip for small business owners?

HT: Be scrappy, don’t be afraid to ask hard questions, and negotiate in a kind and empathetic way. 

AR: Keep your values at the forefront of all of your financial decisions.

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“Always Have a Counter Offer”—and More Money Advice From Our Equal Pay Day Summit

Photo: Smith House Photo

Equal Pay Day symbolizes how far into the year women would have to work, on average, in order to match what men earned the previous year. In other words, women have to work an extra 83 days into 2021, on average, in order to get paid the same amount of money a man made in 2020. But the keyword here is “average.” 

When you break the gender pay gap down by race and ethnicity, it's even wider for Black women, Indigenous women, and Latina women. To put it into perspective, this year Equal Pay Day for Black women is on August 3rd, on September 8th for Indigenous Women, and on October 21 for Latinas. Although the gender pay gap is narrower for Asian American and Pacific Islander women, AAPI Equal Pay Day—which fell on March 9th this year—was still 68 days further from December 31 than it should be.

At our Equal Pay Day Summit presented by Mastercard, we hosted a thoughtful discussion on pay equity with Blake Gifford, an attorney and content creator, Kameron Monet, an attorney and content creator, Kelly Joscelyne, the chief talent officer at Mastercard, and Brenda J. Schamy, partner and co-founder of DiSchino & Schamy, PLLC.

ICYMI, we’ve jotted down all the mic-drop-worthy moments for you, but if you’re still experiencing FOMO, you can join C&C Insiders to get access to all of the workshops, mentor sessions, panels, and keynotes from our Equal Pay Day Summit and all of our past events. (Yes, you read that correctly!).

On knowing your worth…

“If you don’t know your worth (and you should), then research it. Research your value so that you truly know your worth.” — Kelly Joscelyne

“Ask other people. No one wants to talk about money, no one wants to talk about pay. Let's talk about it. Let's bring it to the forefront.” — Kameron Monet

“Employers bank on you not talking about [your salary with your coworkers], because it helps them to hide their hands. Talk about it.” — Blake Gifford

“Make friends at work. Networking is everything. Chase relationships and the checks will come.” — Brenda J. Schamy

On negotiating your salary…

“Negotiating is not a negative it’s a healthy business practice.” — Kameron Monet

“Come in first and come in firm. It anchors the conversation in your favor.” — Blake Gifford

“Know your worth and always have a counter offer.” — Kelly Joscelyne

“Be creative in your negotiations and think outside the box. There's no such thing as no deal if you want it.” — Brenda J. Schamy

On cultivating your dream career…

“You belong in every room you are you're in.” — Blake Gifford

“What’s for you is for you, no matter how much value you give to other people it’s never going to interfere with what’s for you.” — Kameron Monet

“Do anything you want. Reach for it.” — Kelly Joscelyne

“Try it.” — Brenda J. Schamy

On the best money books to read…

“The Confidence Code: The Science and Art of Self-Assurance—What Women Should Know by Katty Kay and Claire Shipman.” — Kelly Joscelyne

“You Are a Badass at Making Money by Jen Sincero.” — Kameron Monet

“Money Diaries by Lindsey Stanberry.— Blake Gifford

“Wise Guy by Guy Kawasaki.” — Brenda J. Schamy

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Mastercard's Ginger Siegel on Real Ways Small Business Owners Can Improve Pay Equity Policies

“Make sure that each employee is aware of expectations and those are equal expectations for equal jobs.”

—Ginger Siegel, North America Small Business Lead, Mastercard

Small businesses have been hit hard by the coronavirus pandemic—and women-owned small businesses have been hit even harder. According to the U.S. Chamber of Commerce, women-owned small businesses have less optimistic revenue, investment, and hiring plans when compared to male-owned small businesses. Still, even despite these challenges, there are a number of impactful ways small business owners—even those with limited resources—can help close the gender pay gap.

To help tackle all your burning questions about how small business owners should be assessing equal pay policies, measuring compensation biases, and retaining working mothers, we tapped Ginger Siegel, the North America small business lead at Mastercard to answer your inquiries in real-time. During a virtual mentor session at our Equal Pay Day Summit presented by Mastercard, she shared some #realtalk on real ways that small business owners can improve their equal-pay policies.

In case you missed it, we’re sharing a few of the Q&As from this eye-opening Equal Pay Day mentor session. Read on for Siegel’s sage advice.

Q: As a small business owner, how should I assess my pay policies and procedures?

“When you think about the assessment of your wages and what you're going to pay, it really should be done in the context of overall employee policy. You want to think through things that are of major importance to employees. Monetary compensation is one, but it's not the only factor. You want to ensure that you create an employee policy that takes into account issues like maintaining a balance between work and family, reducing job stress, and looking at the type of health and retirement benefits you offer. Then, as you structure your performance reviews, make sure that each employee is aware of expectations and those are equal expectations for equal jobs.”

Q: How should I communicate pay equity processes internally?

“Making sure your organization has a very clear view on how you've established jobs, how you've established duties, and how you've established overall functions is critically important. You should also review employee compensation on a regular basis and separate compensation reviews from performance reviews. As a small business owner, you need to understand how your compensation is going to be built in place to provide equal pay for equal work, disclose salary ranges for different positions and levels, and, of course, advocate for your people, encouraging them to be open and honest when these discussions take place.”

Q: It's no secret that women are exiting the workforce when they have children. What policies and procedures should I put in place to prevent this from happening?

“We know discriminatory hiring practices and promotion decisions that prevent women from gaining leadership roles and highly paid positions are actually sustaining the gender pay gap. And it's not only the pay gap—but it's also the opportunity gap. During COVID, 305 million full-time jobs have been lost, many of them held by women, so this issue is critically important. As you're building out your business’ policies, ensure that there's a lot of focus on helping female employees who may be taking more of the burden in terms of the home life, by creating a work-life balance to ensure that your female workers can have the access to help they need and can also have some flexibility.”

Q: How can I actually measure compensation differences to see if there's a bias?

“In order to ensure that there isn't bias, this can't be a one-and-done situation. There has to be a constant constant focus on looking at your pay, looking at all of your employees, and making sure that these things are consistently held equal. It really starts with job descriptions and really ensuring that your job descriptions are not based on who has the job but based on the job.”

If you’re experiencing FOMO and want to know the answers to all the questions Ginger spoke to in this session, you can join C&C Insiders to get access to all of the mentor sessions, workshops, panels, and keynotes from our Equal Pay Day Summit and all of our past events. (Yes, you read that right!).

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When She Was 12, She Started a Cookie Company—Now She’s the Founder of Two Major Organic Food & Bev Businesses

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Nicole Bernard Dawes

It’s safe to say Nicole Bernard Dawes knows a thing or two about the food industry. Raised among the aisles of her mother's natural food store in Chatham, Massachusetts, and on the factory floor of her father’s company, Cape Cod Potato Chips, she was surrounded by CPGs and P&Ls from a young age. And it didn’t take long for her parents’ passion for food and entrepreneurial drive to make an impression on her. When she was twelve, she started a cookie company with her best friend, and although the business was short-lived, lasting just one summer, her appetite for entrepreneurship was not.

In 2003, after a search for organic crackers left Dawes empty-handed, she teamed up with her father to launch Late July, a snack food company to fill the gap in the market for delicious, organic options. Known for its range of delectable crackers, popcorns, and tortilla chips, the brand has quickly grown into a multi-million dollar business with stockists ranging from CVS and Bevmo to Whole Foods. Now, Dawes is applying her business acumen and skill for bringing superior-tasting organic options to market to the beverage industry with Nixie, a certified organic, non-GMO sparkling water brand.

Ahead, the serial entrepreneur tells Create & Cultivate all about how she’s built two successful food and beverage companies, what really it takes to see a business through tough times, and why every entrepreneur should prioritize investing in their team.

How did you make your first dollar and what did that job teach you that still applies today?

When I was twelve my best friend and I started a cookie company. By some miracle, we actually convinced two delis in our small town to sell our homemade chocolate chip cookies all summer long. Twice a week from June to September, we baked our cookies, wrapped them individually, labeled them, and walked to each location dropping them off. We had a blast! In addition to the importance of pricing your product correctly and crafting a good sales pitch, I experienced the joy that comes from loving your job.

Take us back to the beginning—what was the lightbulb moment for Nixie and what inspired you to pursue this path?

With Late July, I was pregnant with my oldest son and couldn’t find an organic saltine anywhere in New York City. I realized that I had discovered an opening into the multi-billion dollar snack market. For Nixie, similarly, I desperately wanted a delicious, refreshing, and certified organic sparkling water to satisfy my family’s significant daily sparkling water habit. I was shocked that none existed that checked all those boxes.

One of the things that drives me the most with both Late July and Nixie, is proving that certified organic products can sell as well as their conventional counterparts. I also love being a business owner because we’re able to make an impact in areas that are important to me personally and also for our planet—for example, I have a goal of helping to eliminate single-use plastic beverage containers and Nixie is committed to never using them.

Entrepreneurship is all about taking calculated risks. What’s the most pivotal financial risk you’ve taken, and how did it change your path? 

Deciding to launch Late July’s tortilla chips during the recession of 2009, the same year my father died and our bank used his death to put our multimillion-dollar loan in default, was the biggest risk I’ve taken as an entrepreneur. We essentially pivoted our whole company with a very expensive product launch during the most uncertain time in our company’s history. Those tortilla chips went on to become the number one tortilla chip in natural foods, and changed the whole trajectory for Late July, making us an overnight success, seven years in the making. When we made this pivot our sales were at $8M, afterwards, we quickly grew to $100M.

Where do you think is the most important area for a business owner to focus their financial energy and why?

Definitely their team. Hiring the right people is expensive and time-consuming, but your team is everything.

What was your first big expense as a business owner and how should small business owners prepare for that now? 

For both Late July and Nixie our first big expense was our initial production run which is very often the case for consumer product companies. Most factories have pretty significant minimum order quantities, which in addition to the cost of producing the finished goods, also means significant upfront costs for raw materials, packaging, and corrugated all before you have any customers. You have to spend the money without any guarantee that you’ll ever make it back. First production runs are expensive and terrifying for a million reasons, but also exciting.

What are your top three largest expenses every month?

Outside of the cost of goods, freight, and promotional expenses, our three biggest monthly spends are on payroll, trade marketing, and sales support (brokers, merchandisers, etc.).

In the beginning, how much did you pay yourself and how did you know what to pay yourself? 

I didn’t take a salary for a long time at Late July and when I did it was $60,000 per year. It wasn’t until a board member in my eighth year suggested it was time to stop underpaying myself based on the company’s success that I finally increased it to a market rate. For that, I used comps for my industry as compiled by our payroll provider. I’m not currently taking a salary at Nixie.

Photo: Courtesy of Nixie

Would you recommend other small business owners pay themselves? 

It really depends on the source of your funding and the amount of your ownership. If you are the primary source of funds and own a significant majority of stock, then it doesn’t really make sense to pay yourself until the company is ready. If you are giving up ownership to bring in investors, then you should absolutely budget for your own salary at a market rate.

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

I hired a part-time accounting person almost right away at Late July and budgeted for a full team for Nixie. So much depends on your funding and how fast you intend to grow. One piece of advice I’d suggest—especially if this is your first venture—is to be hyper-aware of what areas are your strengths and which are your weaknesses so you know what roles to hire first and what qualities to look for in any given role.

Did you hire an accountant? Who helped you with the financial decisions and setup? 

I did have an accountant from the beginning of both companies. He helped me choose the right type of company formation (i.e., LLC vs corporation). For Nixie, we also used an outside accounting person to help our VP of finance with day-to-day accounting in lieu of bringing that function in-house.

What apps or software are you using for finances? 

I highly recommend the following financial and software programs that we use at Nixie: Xero for accounting, Bill.com for bill pay, Gusto for HR, Unleashed for purchase orders, Crisp for sales forecasting, and Expensify for expense reports. We also use Office 365 and Microsoft Teams. I love our current software setup. It’s not expensive and allows for easy reporting from anywhere.

Do you think women should talk about money and business more? Why? 

Absolutely! If you stop for a minute and realize that until the Equal Credit Opportunity Act passed in 1974, married women were denied credit cards and loans in their own name. It wasn’t much easier for single women. It takes generations of change to normalize new behavior, and encouraging open communication on the topic of money and business among women is a vital part of that. I have a network of fellow women CEOs who I frequently and openly talk to about issues affecting our businesses. I also love when business magazines, podcasts, and websites utilize women CEOs to answer everyday business questions.

Do you have a financial mentor? Do you think business owners need one? 

Not specifically, but I was raised in a family business and grew up around P&Ls, income statements, and balance sheets. When I started that cookie company at twelve, my father taught me how to calculate our cost of goods and properly price our products. I don’t think having a specific financial mentor was essential for me because of my background and the fact that I was an economics major so I had a high degree of comfort and familiarity with finance, but if finance and accounting are outside of your comfort zone, then yes.

What is your best piece of financial advice for new entrepreneurs?

Deeply understand your cost of goods, P&L, and balance sheet. Never let anyone else tell you the financial state of your company. If there’s something you don’t understand, learn it.

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3 Major Salary Negotiation Mistakes to Avoid (and What to Do Instead)

Photo: Smith House Photo

Negotiating, much like networking, is something we need to know how to do, yet it’s not a skill we are ever taught in school. But unlike networking, making a big mistake during a salary negotiation won’t just cost you a relationship, it may result in thousands of dollars being left on the table. So what exactly do you need to know when it comes to making the big ask? Here are the top three things to avoid doing in your next negotiation.

1. Getting Defensive

Let’s say you have taken on more responsibilities and put in way more overtime than your peers this past year. However, during your performance review, your boss informs you that you will only be getting the standard 3% raise due to budget constraints.  

In the heat of the moment, your heart rate will naturally jump through the roof in frustration.

What to do instead:

Instead of snapping back with how unfair this is, take a nice deep breath and allow for silence. Slowing the conversation down rather than jumping into a response will create space for you to be thoughtful in your answer rather than reactive.

2. Giving In Too Quickly

Now that you’ve given yourself a moment to breathe, you can start to prepare your response. While it’s natural to worry about what will happen if you ask for more, don’t let the fear of rejection keep you from getting what you deserve.

I’m here to tell you that negotiation is a normal and expected part of working. While your boss may secretly be hoping you don’t push back, they won’t become offended when you do (and if they do, it may be an important red flag to take note of).

What to do instead:

Instead of quickly giving in, restate your value and get their buy-in. For example, “I understand that constraints in the budget must be difficult. However, the amount of hours and effort I have been putting in for the company goes well beyond the standard expectations and performance, wouldn’t you say?”

3. Not Aiming High Enough

Lastly, when discussing pay, it’s natural to worry that if you go too high you will either offend the other party, lose the position, or come across as greedy.

However, you shouldn’t lower your expectations in order to come across as more agreeable.  By starting with a “safer” sounding number you are doing the work for them, and negotiating against yourself before the conversation has even begun.

What to do instead:

Focus on the facts and then aim high.

Do your research and get clear on a salary range that is both fair and reasonable. Next, instead of lowering your standards in order to come across as more agreeable, start at the top of the range.  

For the example above, if a 3 to 8% raise is reasonable, don’t lower your expectations to a safer sounding 5%. Instead, anchor high and say, “I was really hoping that given the results I’ve produced in the past year, that I would get at least an 8 percent increase. Do you think that’s something we could work toward?”

Interestingly enough, by anchoring higher, you actually give your boss the psychological feeling that they just got a “deal.” Let them feel the sweet pleasure of a deal, while you allow yourself the sweet reward of a higher paycheck!

So, in conclusion…

Negotiating doesn’t have to be scary or hard. No one will advocate for you in the same way you can advocate for yourself. You are in control of your financial well-being, and you know the value that you create. Now, share it with the world! And most importantly, share it with your boss when you ask for that next raise. This awkward and uncomfortable situation will only last a few minutes, and it may result in thousands of more dollars in your bank account.

“You shouldn’t lower your expectations in order to come across as more agreeable.”

—Kathlyn Hart, Financial Empowerment Coach

About the author: Kathlyn Hart is a financial empowerment coach and a motivational speaker who supports ambitious women earn more. Her salary negotiation boot camp “Be Brave Get Paid,” which teaches women how to confidently own their worth and ask for more, has helped women increase their income by an average of $15,000.  In addition, she is the host of The Kathlyn Hart Show, where she interviews entrepreneurial women about their journey from dreaming to doing.

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This post was originally published on March 26, 2019, and has since been updated.

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How This Stylist Turned Designer Launched a Business During COVID—and Attracted A.O.C and J.Lo’s Attention in the Process

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Karen Perez

Karen Perez never saw herself designing masks. But when the fashion stylist of 15 years was tasked with finding chic, high-end face coverings for her clients during the pandemic and couldn’t find any, she decided to make her own. “I wanted to create a mask that was feminine and chic by highlighting our cheekbones,” Perez tells Create & Cultivate. “A mask that empowered us to still look and feel amazing when we needed to go outdoors.” And the demand for her products has been staggering from the start.

Leading up to the launch of her business, Second Wind, she announced a pre-sale on Instagram, anticipating 100 orders—not 10,000. The overnight success was overwhelming but also posed a major problem: finding the funds to fulfill thousands of orders. “Right after our launch, I decided to create a GoFundMe to raise capital,” Perez explains. “Within a matter of a week, I raised more than $4,000 which made me realize how many people wanted to support my business, my dream.” Including A.O.C. and J.Lo who are just a few of the high-profile women who’ve been spotted wearing her designs.

Ahead, Perez shares her best advice for scaling a business quickly and sustainably, raising capital through crowdfunding, and building a dedicated team.

What has been the biggest challenge in scaling so rapidly, and what advice can you share for fellow small business owners on how to scale quickly and sustainably?

The biggest challenge was finding the right manufacturers in the U.S. so that I can oversee the work. My advice for those thinking of launching a business or fellow small business owners is to always have a targeted budget to work with and set up contracts with your vendors. 

Would you recommend raising capital through crowdfunding to other entrepreneurs today?

The GoFundMe was very helpful and I recommend others to look into this or other crowdfunding platforms. I know some of us are scared to ask for money, let alone apply for loans, but you’d be surprised how many people out there want to see small businesses thrive. 

Photo: Courtesy of Karen Perez

What was your first big expense as a business owner and how should small business owners prepare for that now?

My first biggest expense was supply—and still is. For big expenses, you have to save. It’s hard for me to give this advice because I gave every penny of my savings to launch the business. I don’t advise everyone to do that because I have a different story than others. While it might not be the best advice, if you feel like you have something special and you want to do it right, go all in.

What are your top three largest expenses every month?

1. Product, materials 

2. PR/marketing 

3. Payroll 

Do you pay yourself, and if so, how did you know what to pay yourself?

Technically I don’t pay myself (yet) because every dollar that I make, I put it back into the business. Second Wind still hasn’t even met its first year, and I have to recognize that I still have more expenses to make in order for this business to grow before I can see personal revenue. 

Would you recommend other small business owners pay themselves?

Absolutely! I think it’s important that you pay for the necessities that you need. You really need to learn how to manage your budgets and how to manage your business and personal expenses. Always stay realistic with yourself. 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

I knew I had to hire right away—as soon as I saw the 10,000 orders! I physically can’t do all of this by myself. I realized I had to take into consideration what I am investing in when hiring staff. When hiring your team, don’t just look at someone who’s going to make your job easier. You need to invest in building a team that is going to be dedicated to building the business with you. 

Did you hire an accountant? Who helped you with the financial decisions and setup? Are there any tools or programs you recommend for bookkeeping?

I hired an accountant and bookkeeper that I work with on a monthly basis. My accountant is also like my financial advisor and has guided me with managing budgets and expenses. My go-to program is Quickbooks. 

Where do you think is the most important area for a business owner to focus their financial energy?

Your financial energy should definitely be put towards your product (materials, supply) and PR/marketing. This is the core of my business and it’s what helps us to continue to grow. 

"No matter how much money you are making, how much money you have to spend, if you stand by your product and business you will see financial gain."

—Karen Perez, Founder of Second Wind

Do you think women should talk about money and business more?

Yes! I think it’s so important. For a long time, women were never thought to be included in these conversations. I think it’s important for us to come together and be open and share advice. I have my go-to circle of friends that are also small business owners and they share advice with me all the time. 

Do you have a financial mentor? Do you think business owners need one?

I have several financial mentors—a mix of both men and women. I think it’s important for others to have one. Don’t be shy to network and ask around/meet with your local business owners. You’d be surprised as to how many small business owners in your area would be willing to chat with you and give you some advice. 

What money mistakes have you made and learned from along the way?

As a new small business owner, you are eager to get things done and sign off on contracts without reading them properly, and when there are problems, you realize you didn’t read the contract correctly. My advice is to READ everything carefully and protect yourself. 

What is your best piece of financial advice for new entrepreneurs?

The best advice is to love what you do. No matter how much money you are making, how much money you have to spend, if you stand by your product and business you will see financial gain.   

Your business has garnered the support of high-profile women by the likes of Alexandria Ocasio-Cortez and Jennifer Lopez. No doubt, major retailers are asking to carry your products as a result. What’s next for you and your brand? Can we expect to see Second Wind products at Bloomingdale’s or Nordstrom in the future? 

We are excited to announce that we have a confirmed retailer commitment from Saks Fifth Avenue. Our products will be sold online until further notice. This is just the first step to growing into a global brand.

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5 Things You Can Do Today to Help Close the Gender Pay Gap

Photo: Smith House Photo for Create & Cultivate

It’s Equal Pay Day. The symbolic day dedicated to raising awareness of the gender pay gap. The day represents how far into the new year a woman must work, on average, to earn what a man earned the previous year (though for many women of color, the dates are even later in the year).

As a society, we’re making strides in rectifying this, but the stats show just how much work is left to be done. Today, we’re sharing five things you can do today to help close the pay gap for yourself and others, from sharing your struggles to creating a community committed to transparency.

1. Do your research.

First things first: The internet is your friend. Use salary comparison sites to research the average pay for your job title in your city and see where you fall in the rankings. You can also use Glassdoor’s Know Your Worth tool to receive a custom salary estimate based on your title, company, location, and experience.

2. Be transparent.

If you’re gonna talk the talk, it’s time to walk the walk. Talking about pay isn’t as scary as it sounds—you can start with your friends. Share your salaries with each other and talk about what’s fair. You can also start a wage club and consider inviting expert guest speakers who will talk with you about salary negotiations, wages, or career ladders.

3. Ask your mentor.

Do you have a mentor? If not, here’s a helpful guide to finding one. Once you’ve established a great relationship with a more experienced female mentor in your field, you can ask her for advice: How did she negotiate her first raise? How does she confirm she’s being paid fairly? What would she suggest for your particular situation? Having someone in your corner to help guide your negotiations is paramount.

4. Put out feelers.

Use social media to your advantage. Post on LinkedIn, Instagram Stories, or elsewhere asking people to talk about money with you. You’ll cultivate a great community of people who want to discuss salaries and negotiation strategies—you might even be able to form a wage club from this group of people.

5. Share this article!

The easiest way to make financial conversations less taboo is to encourage others to do so, too. Share this article and start a conversation—the wage gap may be an institutional problem, but we can help encourage each other to know our worth and fight for it.

This story was originally posted on April 2, 2019, and has since been updated.

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Pro Tip: How to Approach a Client About a Late Payment

Photo: ColorJoy Stock by Christina Jones Photography

We’ve all more than likely been through this particular situation but I’m curious: how many of you reading this are happy with the way it was handled? In my experience, people are typically afraid to approach a client about late payments because they’re afraid of annoying or upsetting the client.

Your clients do not hold all of the power.

They should be just as concerned with annoying or upsetting you by being late with their payments. And more likely than not, these situations can be easily solved with some good ole fashioned communication. So let’s break down how to approach and communicate with your clients about a late payment.

Why it’s important

You need to get paid, that’s why.

Scenario #1

You’ve been working with a new client and after the first month of service, submitted your invoice. Another month of work has gone by and you’re about to submit your second invoice but haven’t been paid for the first invoice you submitted. You originally agreed to payment schedule terms with your client at the start of your working relationship and put a “net 30” payment deadline in your scope of work and invoice.

If the terms have been agreed upon and this is the first time you and your client are working together, it may take time to get the first payment process into rotation with Human Resources (HR) and Accounts Payable (AP).

While this isn’t ideal for any situation, it’s one of the many hurdles of freelance life and it’s better to prepare for it than not; but that doesn’t mean you shouldn’t say anything when a payment is late either.

Say this

“I’m getting ready to submit my second invoice and wanted to let you know I still haven’t received payment for last month’s services. Do you have everything you need from me to get this processed? If so, can you please let me know when payment is expected to come through?”

Don’t say

“….”

The breakdown

When it comes to talking to your client about getting paid, more people opt for saying nothing over something. It’s imperative you keep an open dialogue about payment processing so you can better manage your personal finances.

Freelancers don’t have the luxury of bi-monthly paychecks and your clients will understand this. Remember, your services are an investment and they should respect your time and business by actively communicating when payment may be late.

If you approach your client about a late payment and they’re able to share why it’s running late and when it will be processed, that’s a great first step. Take note and document it in a follow-up email with the information that was shared if the conversation is held in person or over the phone.

From there, hold your clients accountable. If the date comes that they said you’d receive payment and it doesn’t process, follow up with another email. Chances are, there’s another department that handles payments and your client will do their due diligence to make sure you get paid.

Scenario #2

You’ve submitted not one, but two invoices that have not been processed. You’ve approached your client about the first late payment and they gave you a timeline for when it would be processed. Now you have two late invoices and it’s time to submit invoice number three.

Say this

“I’m getting ready to submit my third invoice and have still yet to receive payment for my first or second invoices. The terms we agreed upon have not been met and I’ve followed up several times to try and resolve this matter together. With respect, I will have to cease my services if these late invoices aren’t processed by one week from today. I hope you can understand the difficult circumstance this puts me in and that we can work together to reach a solution.”

I have a feeling this is going to cause some mouths to drop.

What? Cease services?

YES. You need to get paid!

Freelancers, hear me! This is business 101.

Clients and freelancers create a circle. You should be getting just as much value from the relationship as your client is getting from you. This isn’t just measured in dollars. This is measured in reliability and respect. If you have continually met your deliverables and communicated your expectations for payments and they’re not being met, then it’s time to take a stand.

It will be difficult but it is necessary. And it will light the fire under your client’s butt because if you’re doing your job right, having you around makes their work-life easier and they should want to keep you happy and ultimately, paid.

What financial situations have you found yourself in that you wish you had communicated better? Share them in the comments or send me an email at hello@thescopeblog.com.

“Clients and freelancers create a circle. You should be getting just as much value from the relationship as your client is getting from you.”

—Audrey Adair, Founder of The Scope

About the author: Audrey Adair is a seasoned freelance communications professional and founder of The Scope, a platform providing resources and community to freelancers and the self-employed. Connect with The Scope on Instagram and join their email list to receive your free resource, The Freelancer Starter Kit.

This post was originally published on April 30, 2019, and has since been updated.

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"Confidence Gets Checks Signed"—Why This Founder Wants You to Have a 3-Year Plan for Your Business

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Jen Batchelor

Jen Batchelor knows a thing or two about pitching to investors. Since launching Kin, a beverage company that’s reinventing booze-free imbibing with potent blends of adaptogens, nootropics, and botanicals, the founder has raised over $5 million in funding from venture capital firms, such as Refactor Capital, Canaan (which has also backed startups by the likes of Bird, Cuyana, Instacart, and The RealReal), and Fifty Years. But before she started fundraising, she went the self-funded route—for two crucial reasons.

“I really didn’t want to launch this business—or waste other people’s money trying—until I knew our approach to [producing an alternative to alcohol that preserves the positive effects of having a drink] was something that, one, was a sustainable solution and, two, was something the world actually wanted,” Batchelor tells Create & Cultivate. It’s an approach that involved a longer timeline—and a bit of bootstrapping—but it’s safe to say it paid off in the end. “We gave ourselves 12 months to develop a minimum viable product and beta-taste it to over 3,500 people. It ended up taking nine months to make up our minds and then two seconds for our first investors to say, ‘Yes.’”

Ahead, we chat with Batchelor about how she took her business from a self-funded startup to a venture-capital-backed company, including the money mistakes she’s made along the way and her best advice for founders on partnering with the right investors.

Take us back to the beginning. What was the lightbulb moment for Kin? What inspired you to launch your business and pursue this path?  

Well, as there usually are with honest assessments of the self, it took multiple lightbulbs to get me to wake up. In fact, it took about the tenth one to finally push me from fear to faith. Ultimately, I noticed that after college, my friends and I never really slowed down our alcohol consumption, we just bought more expensive booze—which we thought elevated or justified our drinking somehow. As wellness became a bigger part of our collective routines and we all got smarter about our careers and fertility goals, we realized even the most expensive champagne couldn’t save us from the precious time (and collagen) alcohol was robbing us of every week, no matter how much OJ was in it! When I started going through the scientific research and assessing all the things I was potentially compromising in my life even with just a few drinks a week, the most surprising of them all was my cognitive ability. My brain was my instrument and my time was a currency in the age of freelancing and entrepreneurship, so it finally got to the point where I had to admit that the costs of my social habits were too great a debt to bear while going after my dream goals.

You self-funded Kin for the first year, but you've since brought on investors such as Refactor Capital, Canaan, and Fifty Years. Why did you pursue a self-funded strategy initially, and why have you sought out investors over time? Would you recommend that route to new entrepreneurs today?

I really didn’t want to launch this business—or waste other people’s money trying—until I knew our approach to solving the problem itself was something that 1) was a sustainable solution (it worked and would continue to work in the future) and 2) was something the world actually wanted. We gave ourselves 12 months to develop a minimum viable product and beta-taste it to 3500+ people. It ended up taking nine months to make up our minds and then two seconds for our first investors to say, “Yes.” We knew they were the right folks because they were focused on the future of food and understood we were in this to truly disrupt the 10,000-year-old (read: dated) tradition of drinking ethanol for funsies. The same way they knew the meat industry was unstainable for the planet, they knew ethanol was unsustainable for the people. It was an instant match. 

What advice can you share for entrepreneurs on partnering with the right investors? What do investors need to bring to the table other than just money? 

This is an important question so I’ll try to do it more than lip service. You really need to know your business and what it needs to be successful in this immediate stage in order to pick great investors for a particular round of financing. It’s like putting a fantasy football team or a great outfit together. You wouldn’t pick your favorite bikini, pair it with your favorite gown and your favorite sneakers and call that date night chic. Start with the intention, know the audience you are trying to serve (a.k.a your best customer now, that may change down the line so spend time doing the research), and then go after investors that can help you reach that customer, help you land that next critical hire, help you troubleshoot potential challenges for the relevant season in your business journey, etc, etc. With all the capital available in the world right now, this is much easier to do than it sounds. Be choosy! The best investors will get the mission and be ready to pull up their sleeves to hustle right alongside you when you really need the support. Whenever possible, bring on a couple of investors that have been owner/operators in companies with growth trajectories and exits you’d like to follow or who have built cultures you admire. 

Since launching Kin in 2018, you’ve raised over $5 million in funding from venture capital firms—no doubt you’ve learned a lot along the way. What are three crucial elements everyone should include in a pitch deck when raising money and why? 

Your pitch deck will evolve for every season of fundraising you enter. At the onset, it’s important to remember that everyone has an idea worth funding. The question is why are you and this idea a match? What is it that makes you uniquely suited to reach a certain audience?  I’ll tell you from experience, it’s not enough to just be “the first” to market. Though it can help with angel funding to be a first-mover, it won’t always get the bigger deals done. You must have a unique strength and competency and a strategy for growth. Secondly, you’ll need a three-year plan to woo the best investors—they need to see a path to profitability even if a lot of it is based on hypotheticals. Third, show any evidence of traction and do it well. Again, social proof around an MVP is going to drive the kind of confidence in you as THE person to lead this concept to success. Confidence gets checks signed. Know your shit.

Where do you think is the most important area for a business owner to focus their financial energy and why? 

If I had two dollars, I would spend it on people and customers every time. $1 on my team and $1 learning what makes my guest (customer) tick. 

Photo: Courtesy of Kin

What was your first big expense as a business owner and how should small business owners prepare for that now? 

People was the first big expense—and still is. Get smart about your org strategy and the incentives you’re going to need to get the right people in the right seats early. Think about things like benefits and stock options before you hire your founding team. Get that squared away and you won’t need to revisit this in year two when you should be focused on scaling. Katrina Lake from StitchFix has a great blueprint for this in terms of hiring your A-team early.

What are your top three largest expenses every month? 

People, shipping, and people.

Do you pay yourself, and if so, how did you know what to pay yourself?

Yes. I came into this with a co-founder so we just took the typical founder salary of one founder/CEO and divvied it up based on responsibilities. This didn’t happen till we raised some money, though—before then, the goal was to get to “ramen money”—and now I have a board so it’s evolved into a collaborative effort of incentive setting based on growth and OPEX management goals. 

Would you recommend other small business owners pay themselves? 

This is a highly individual question based on what gets you up in the morning and what you need to stay creative. If you’re bootstrapping to get your dream off the ground, stay as lean as possible for as long as possible. Stay hungry. Once you have investors though, you start to realize you work for them as much as you work for yourself, so get yourself paid and live in a way that supports your best sleep. No investor wants to see a founder they believe in stressed AF about how they’re going to pay their electricity bill while trying to change the world. 

Did you hire an accountant? Who helped you with the financial decisions and setup?  

Yes, I had an accounting service from day one and now have an accounting team supporting my head of finance. 

What apps or software are you using for finances? What’s worked for you? 

Brex is pretty sweet for managing expenses and empowering departments to do what they need to do.

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget? 

We run a pretty classic system at Kin. Excel, QuickBooks, and Gusto get us where we need to be on budget management, AP, and people expenses. It also forces upon us a checks-and-balances system that keeps us on our A-game. That said, as a mostly e-comm-driven company that handles the production complexities of our own manufacturing, a stellar inventory management system is also non-negotiable. We just onboarded to Cin7 which is supposed to make this process more centralized and automated but I’ll have to keep you posted on that one as it is still new for us! 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

We only hired after we raised money. At that point, the plan was set and we knew we had to get troops in the air and on the ground building and spreading the gospel of Kin as soon as possible. Luckily, the first wave of folks were friends, smart ones, many of whom are still with me today so it wasn’t a hard decision for me to bring them on board, having all the faith and confidence that we could get to where we needed to go collectively. The bigger leap of faith was on them—why should they follow me when they could be working anywhere in the world? Eternally grateful to each of them for leading with faith and jumping in with excitement. The world would be a much boozier, less blissful place without them. 

The key with hiring was securing the folks I wanted to work on Kin versus the ones I thought should be working on Kin. Such a subtle difference but the latter hiring decisions, I have found, to be subliminally based on fear. “I should bring on this expert from this big brand because that’s probably smart to do no matter how much they cost” versus “I’m dying to get this person on my team, maybe I can’t put a finger on why but I know their background, talent, core values, and gusto around the mission will yield more than their title suggests.” In short, do your diligence but follow your intuition in the end. Then lead them. 

Do you think women should talk about money and business more? 

Definitely. Guys talk about this stuff all the time, it’s like a sport. Because of that, they win at it, a lot. I think building your financial acumen is a great way to eliminate black box challenges and be truly fearless in steering your business. 

Do you have a financial mentor? Do you think business owners need one? 

I have a CEO coach and a management mentor. The latter is someone who has built (and scaled) a culture I admire. Both impact how I think about financial priorities, but I would say the most influential people in my sphere impacting Kin’s financial destiny on the regular is my head of finance and my lead investor. I rely on one to read between the line items of today—how are we trending day-to-day, week-to-week, what can we cut, where can we more efficient? And the other to help me think about structuring the business for the next level of growth. 

What money mistakes have you made and learned from along the way? 

Most all of my money mistakes have been people-based. This is why “hire slow, fire fast” is one of the most prolific adages of modern entrepreneurship. One dollar in the wrong pocket is not only painful for the bottom line but costly to team morale and productivity. It’s not just exposure in terms of salary, having the wrong person in the wrong seat affects the output of the entire business, especially during earlier stages. 

What is your best piece of financial advice for new entrepreneurs? 

I’m a big believer in raising a hair less than you think you need. Just because someone is willing to sign over a check for $10 million, if you only need $3, take $2.5 million. Trust me, it will make you a stronger, more creative leader and you’ll leave yourself less exposed to micromanaging or dilution of vision (not to mention, equity!). Otherwise, don’t waste money on consultants and expensive research firms unless the output is a direct input or prerequisite for the product you are building. Even then I would wait. You are the magic sauce, you don’t need to spend $100K for someone to tell you that you know your brand better than anyone. To whit, whatever freelancers you do end up hiring watch for the ye olde SCOPE CREEP! It can eat any small business alive, so please iron out your contracts in advance. 

Anything else to add? 

Don’t forget that money is purely an exchange of energy. You don’t want to fear it lest it dominate you just as you don’t want to squander it lest it rob you of opportunities. Get cozy with your relationship to money as a whole (what are your limiting beliefs around money? what are your traumas? insecurities? identify black box knowledge areas) so you can work with it in your business life in a fluid and empowering way. Protect your energy but don’t let money rule every decision. You got this.

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Everything You Always Wanted to Know About Cryptocurrency (But Were Too Nervous to Ask)

Photo: ColorJoy Stock by Christina Jones Photography

You’re not alone if you find the concept of cryptocurrency daunting. When someone mentions the topic of cryptocurrency or starts talking about all things Bitcoin, you might find your mind wandering. So, what is digital money? Where does its value come from? Is this something I should be investing in? How risky is it? And what exactly is the blockchain? And we don’t blame you. The idea of digital currency that isn’t managed by a bank or government seems like a plot point straight out of “The Matrix.”

So, to help break it down, we tapped Ayelen Osorio, the content and community manager at Netcoins, a Canadian cryptocurrency exchange company. “A big part of my job is learning about cryptocurrencies and bringing women along that journey with me,” Osorio tells Create & Cultivate. “A year ago, I had no clue what cryptocurrencies were but in a surprising twist of events, I became fascinated by them.” (Which is something that should give hope to all of the cryptocurrency-curious novices reading this right now!).

Ahead, she answers all our most pressing questions about cryptocurrency, from what it is to where it gets its price from and whether or not it’s a risky investment.

Most people have heard of cryptocurrencies, like Bitcoin, but might not totally understand what they are—Can you give us a brief overview?

Cryptocurrency is digital money. It’s money like the dollar or euro or yen. But it exists only in a digital form and is not managed by central authorities like banks or governments. 

What this means is that we aren’t reliant on something like the bank if we wish to access, withdraw or move our money (Bitcoin). This is something called “decentralization.” It allows someone to send Bitcoin from one part of the world directly to another in a way that’s instant, secure, and with minimal fees. 

You can also think of Bitcoin as a store of value like gold. While Bitcoin, like gold, isn’t commonly used to buy goods and services on a daily basis, it still holds value because of its limited supply and because of the difficulty of producing. Many refer to Bitcoin as “digital gold”.

We’ve gone through many iterations of money throughout history from seashells to cattle, gold and other precious metals, to paper money and plastic money (a.k.a. credit cards). For many Bitcoiners, cryptocurrencies like Bitcoin are the future of money. 

Where does cryptocurrency get its price from? 

Cryptocurrency prices are set in the same way that the price of real estate is set by the supply and demand of the market. Then there are platforms and sites that aggregate these market prices to pull a global price average—that’s the number we use when we say “the price of Bitcoin is $50,000.” 

What makes cryptocurrency unique? 

A unique characteristic of Bitcoin is that it has a limited supply of 21 million coins (remember these aren’t physical coins). In theory, this scarcity would suggest that Bitcoin is protected from hyperinflation and therefore should hold value in the long-term. 

This stands in stark contrast to the dollar which is unlimited in supply. Governments are known to be willing to print an unlimited amount of money, which causes long-term inflation. That’s why the dollar keeps losing buying power over time; that sandwich that cost $1 about 15 years ago, today costs $5. Inflation is keeping us poorer. 

It’s precisely because of this that Tesla recently bought $1.5 billion worth of Bitcoin, why the Winklevoss Twins (investors and entrepreneurs) believe that the price of Bitcoin will reach $500,000, and why we’re seeing more and more investors buying Bitcoin. What they all have in common is that they believe Bitcoin is a safe haven and a valuable savings technology during the unprecedented time that has been the pandemic. 

What are the risks of investing in cryptocurrency?

To start, all forms of investments carry with them an inherent level of risk so you should never invest more than you’re willing or ready to lose. 

Cryptocurrencies like Bitcoin are known to be volatile and the price fluctuates quite a bit on a day-to-day basis. But many Bitcoiners see this as the growing pains of a new, better financial system being put in place. 

It’s important to zoom out and look at the bigger picture. In 2010, one Bitcoin was worth less than $0.10. Fast forward 11 years, in 2021, one Bitcoin is worth over $54,000 (at time of writing). This is partly why Bitcoiners are willing to withstand volatility in the short-term because it trends in an upward direction in the long-run.  

In terms of hacking and theft, you may remember when earlier this year a 17-year old hacked celebrities’ Twitter profiles and asked for Bitcoin donations. The media said that Bitcoin got hacked. But Bitcoin didn’t get hacked, Twitter got hacked. 

The Bitcoin network (known as the blockchain) has actually never been hacked. It’s almost impossible to hack because the network is run among thousands of computers spread around the world. So a hacker can’t find a single, central point of weakness for an attack. This is why the technology is revolutionary. Most of the hacks we’ve heard about have been caused by human error like sharing passwords or allowing other people to manage their funds.

What are some investment tips you can offer to women wanting to start out? 

A common misconception is that you have to buy one entire Bitcoin. But you can actually buy fractions at as little as $10, $100, $1000. The great thing about cryptocurrencies is that you can start out small. For example, 0.5 BTC, 0.1 BTC, 0.01 BTC. This means that even if you’re relatively risk-averse, you can still test out the crypto waters with just $10. This is unlike stocks, where you have to buy the stock at its full price. 

The best way to learn about crypto and start out is to experience it firsthand. Create an account, see how easy it is to fund with an e-transfer, and make your first crypto purchase with just $10. It’s a much simpler process than many imagine it to be. 

Women looking to diversify their portfolio could benefit from investing in non-traditional assets (like cryptocurrencies) alongside their traditional assets (stocks, real estate, etc). But similar to stock trading, you need to be comfortable with a certain level of risk.

Generally speaking, I would say:

• Do your own research.

• Test your learnings with your friends, family, mentors so you can find loopholes in your thinking and grow from it.

• Never invest more than you’re willing to lose.

• Don’t time the market. Time in the market beats timing the market.

• Aim for a dollar-cost average. Buy a set amount of crypto each day, week, or month (up to you).

• Stay patient and disciplined. 

Investing in cryptocurrencies probably isn’t a great fit for those that are looking for quick and guaranteed profit. Cryptocurrencies are volatile, so it does require some patience and time to reap the benefits, but this is also true about stocks and real estate.

“A big part of my job is learning about cryptocurrencies and bringing women along that journey with me.”

—Ayelen Osorio, Content and Community Manager at Netcoins.

About the expert: Ayelen Osorio is the content and community manager at Netcoins. She has a natural knack for writing and community building. Ayelen brings years of experience in communication, marketing campaigns, and partnerships. If she’s not writing, she’s out hiking.

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“Don’t Take the First Offer” and More Negotiating Advice to Close the Gender Pay Gap From Jennifer Justice

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Here’s a startling statistic: 20% of women never negotiate. To put that into context, a woman who doesn’t negotiate her starting salary upon graduating from college will lose between $650,000 and $1 million over the course of a 45-year career, according to Harvard Business Review. In order to close the gender pay gap, we need to narrow the gender negotiation gap. However, we know that’s easier said than done.

For tips on how to negotiate, we turned to none other than Jennifer Justice, a former music attorney who has orchestrated major deals for artists like Beyoncé and Rihanna. Justice (and yes, that’s her real name) has spent much of her career working to close the gender pay gap and even founded The Justice Dept., a management, strategy, and legal firm that works almost exclusively with women, in order to help more women succeed in business and get paid what they’re worth.

Ahead, Justice reveals how she’s navigated negotiations as a woman in a traditionally male-dominated industry and shares her top three tips for getting what you want once you’re at the negotiating table.

CREATE & CULTIVATE: You’ve worked with some of the hardest-working women in the music industry, including Beyoncé. What have you learned from negotiating deals for some of the most successful women in the business? 

JENNIFER JUSTICE: I have learned that women do much better having female advocates. We think differently, we assess risk differently, we go through different life changes, so we need our advocates to understand how we think. We aren’t brought up with business vernacular, and female advocates understand this. We need to embrace our changes and find the advocates who understand this about us.  

Can you tell us about the first major deal you negotiated for a female professional in the music industry? What went right and what went wrong? When did you first notice the glaring gender pay gap in the industry?

I was representing women and men in the industry. I did a deal with a major publishing company for an entry-level director executive who was male—he was offered off the bat $130k. He hadn’t signed anyone yet (ie. brought in any revenue) and they were paying him for potential.

I then did a deal for the senior director for the same department—female—and her first offer was $90k. I was outraged. Why was this okay? Not only with the company, but in general? I fought for her and fought for her and they raised it to $100k but said she didn’t have enough experience yet.

So moral of the story was: men get hired on potential and women for experience. This is still true to this day and there is a ton of research to back it up.  

“Try to do business with as many women as you can. Build each other up so we have our own table instead of asking for a seat at a table you don’t even really want to be at.”

— Jennifer Justice, CEO & Founder, The Justice Dept.

How have you navigated negotiations as a woman in a traditionally male-dominated industry? Have you found that men in the room treat you differently? How have you overcome that and earned the respect you have today? What advice can you share?

As a woman, I had to repeat myself all the time and be relentless to get what I wanted. Men definitely treated me differently, from flirting, to calling me “kiddo,” “sweetie,” and “honey,” to total sexual harassment, offering me the deal if I gave them what they wanted. 

But I didn’t let it stop me. I just kept going and getting the best deals I could. I was relentless and probably got my way mostly because not only was I right, they couldn’t get me to stop.I nagged them to death. After a while, I was experienced enough with enough years and reputation behind me that I didn’t have to use those tactics, but I shouldn’t have had to in the first place.

My advice: be relentless and call it out if you see the same misogynistic behavior. Try to do business with as many women as you can. Build each other up so we have our own table instead of asking for a seat at a table you don’t even really want to be at.

Negotiating—especially for money—takes confidence. Is this something that comes naturally to you or did you have to work on it? How did you develop that skill set? What advice can you share on cultivating confidence? 

It’s always easy negotiating for money for someone else. It’s not easy doing it for yourself—even for me. There is a saying, any lawyer that represents themselves has a fool for a client.  Same applies to you—try to have someone else negotiate. If you can’t or can’t afford it, you need to practice, you need to pretend you are negotiating for your kids—because that is who you represent, ultimately—not your job, but your family or whatever else you really love. Do it for them and it will make it so much easier!

How do you determine your worth so you can fight for what you deserve as well as for what your clients deserve in a negotiation? What tips can you share for others trying to determine their worth before walking into a negotiation?

My worth is my experience. What takes me 15 minutes could take others hours. I should get paid more for that and I do. I look at the market rates, my experience, my expertise, and I ask others how they charge. I do the same for my clients. Women do a lot of “free” work and give a lot of “free” advice. We need to charge for it—all of it—and really embrace that we are worth it. So you can have an hour of my time, after that, I deserve to get paid for my advice.  

“More money in women’s hands means more money in the economy—we control 80% of the purchasing power. Pay us and we will make the world a better place.  ”

— Jennifer Justice, CEO & Founder, The Justice Dept.

You’ve spent much of your career working to close the gender pay gap. What still needs to change in order for us to level the playing field?  

We all need to acknowledge that it exists, first of all.  Don’t say, “Oh, we have a lot of women at our company—over 50%.” Having women at the company isn’t the issue. It’s having women on the board (more than two), having women in the C-suite (more than two of them) in decision making and revenue-generating roles where their decisions are heard and implemented because they are running the companies. Then we all need to make it happen and keep it that way.

To me, there is an urgency. We should fight for it because we are 50% of the population. Equal pay is necessary on a human level, but also on a financial level. Companies do better when they have women on their boards, women in the exec decision-making roles, and more money in women’s hands means more money in the economy—we control 80% of the purchasing power. Pay us and we will make the world a better place.   

We can only imagine that you’ve negotiated hundreds of deals at this point, so we’d love to know: What are your top three negotiation tips? How do you enter a negotiation with confidence and secure the deal?

The first tip is to actually negotiate. Don’t take the first offer. Second, do your homework. Ask to see what the market is for what you are negotiating, ask people, be prepared.  Third, understand your goals and what you want. Know what you will give and what you absolutely must have so if you don’t get it, you can walk away.

This story was originally published on March 31, 2020, and has since been updated.

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Hey, Money Makers! Here's What to Expect at Our Equal Pay Day Summit Presented by Mastercard

Photo: Smith House Photo for Create & Cultivate

Women make up nearly half of the workforce in the United States today, yet they continue to earn much less than men. On average, women in the United States make 81 cents for every dollar a man earns. But the keyword here is “average” because the pay gap is even wider for WOC. Black women earn 63 cents for every dollar a man makes, Native American women just 60 cents, and Latina only 55 cents. And although Asian American and Pacific Islander women earn 85 cents for every dollar a man makes, on average—that’s still 15 cents less than it should be.

This brings us to Equal Pay Day, a day that symbolizes how far into the year 2021 women would have to work, on average, in order to match what men earned in 2020. This year, Equal Pay Day falls on March 24th, which means women would have to work an extra 83 days, on average, in order to achieve equal pay with men.) So, in an effort to narrow the gap and make Equal Pay Day a thing of the past, we’re hosting Equal Pay Day Summit Presented by Mastercard to bring you a lineup of empowering workshops, insightful roundtable conversations, and mentor power hours to tackle everything from salary negotiation to money management and so much more.

Read on to learn more about everything we have planned and what you need to know to make the most of it. If you haven’t already, be sure to RSVP for free ASAP!

THE DATE

Wednesday, March 24th, 2021

TUNE IN FROM HOME

First things first! On Wednesday, March 24th, you’ll receive an email with the link to access the Equal Pay Day Summit event site. Please note: All content will go live on Pacific Daylight Time (PDT), including the launch of the Equal Pay Day Summit event site. To find out what time a session is happening in your time zone, use this handy time zone converter.

The digital summit is made up of pre-recorded video sessions hosted via Vimeo and live video sessions streaming via Zoom. We recommend that you have a strong WiFi connection and update to the latest version of Zoom for the best experience. The summit 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 until Thursday, April 1st at 5 pm PDT (Insiders, you have all-access even after the cutoff via your C&C Insiders dashboard!). 

THE SCHEDULE

Equal Pay Day 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. Please note, all times are listed in PDT (Pacific Daylight Time) and EDT (Eastern Daylight Time). To find out what time a session is happening in your time zone, use this time zone converter. 

It’s going to be HUGE so we recommend getting a head start on planning out your day now.

THINGS TO PREP AHEAD OF TIME

Here are a few things to prep before the big day so it goes off without a hitch:

• Make sure you have a strong WiFi connection.

• 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 for an optimal experience.

    • 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. 

• Be sure to download the workshop assets so you can follow along with the expert in real-time. Note: Your exclusive workshop downloads will be available starting Wednesday, March 24th via the Equal Pay Day Summit event site. 

• Psst… Claire Wasserman of Ladies Get Paid is leading a salary negotiation workshop you don’t want to miss, and for more sage advice you can order her book “Ladies Get Paid” here.

GET SOCIAL

Stay tuned for exciting announcements and updates by following along on our social at @createcultivate. Don’t forget to tag @createcultivate and use the hashtag #CCEqualPayDaySummit for the chance to be featured in our Instagram Stories throughout the day! (Psst… Search “Create Cultivate” on Instagram to use our custom GIFs.)

C&C INSIDERS’ PERKS

Our Insiders get a ton of perks at all our events—and this summit is no exception. As an Insider, you’ll have access to all of the workshops, mentor sessions, panels, and keynotes via your C&C Insiders dashboard after the event. Not an insider yet? Well, don’t miss out—you can sign up here. 

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? Which session are you looking forward to most? Tell us in the comments below!

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I Got 20 Female Entrepreneurs Together and *This* Is Their Biggest Problem

Photo: ColorJoy Stock by Christina Jones Photography

At an entrepreneurial meetup I hosted recently, I asked everyone to think of a high-end offer for their audience. Most of the women in the room had never offered anything at a premium price, but I was shocked when someone started telling the group about her experience doing so. “I run a successful, high-end seven-figure company, and have for over a decade, but every time I finish the year, I’m disappointed with profit margins hardly over 30%,” one entrepreneur told us. 

She went on to explain that she charged a lot, but would also sometimes tell her clients that they didn’t need to pay for that month’s work or she would offer to do certain expensive tasks for free. Woah. High-end, but still scraping by? Not okay. But she’s not the only one. According to this study, self-employed men earn 28% more than self-employed women. Why is this? In my experience, it’s usually because women don’t charge enough for their services or they try to be too generous, which then leaves them with measly profit margins.

By and large, the #1 problem female entrepreneurs have is asking for an amount that not only covers costs but also leaves them with a healthy 70% profit margin. Here are three things you can do to reverse this and make more money in business.

1. Fire some clients. 

If you have a client who doesn't want to pay what you're worth, don't hold on to them. Lovingly let them go. This will create space for more clients to come in that will gladly pay whatever rate you charge. And the secret truth is that the highest-paying clients are the easiest to work with, but you can’t serve them if you’re too busy with clients who don’t value you or your work. Trust that there’s more where that came from, set your boundaries, let difficult clients go, and focus on attracting higher-end clients that love you.

2. Overcompensate for costs. 

If you think you need to charge $5,000 to cover costs and turn a profit, my advice is to double that. When you price an offering, putting in a buffer amount allows wiggle room for you to cover any extra time or expenses spent on a project. It’ll also ensure that if you need to hire help or invest in new material you won’t go in the red. This is especially important for product-based or project-based businesses that go off of cost estimates. Overestimate costs so that you can a) make more money and b) overdeliver on your service. 

3. Charge a premium price. 

To me, premium means anything above $1,000 a month. If you're charging a premium, you can take on fewer clients, do better work with them, but not suffer the loss of profit. You can have multiple tiers of offers to serve your client base, but having at least one premium offer is such a game-changer when it comes to scaling your business. Raise your rates and watch the magic happen as you work less and earn more. 

I don’t know about you, but I’m done seeing women settling for “enough.” Setting the bar high for yourself and your business means you aren’t just a newbie in your field, you’re an expert. What naturally follows is increased profits and better clients. 

“If you have a client who doesn't want to pay what you're worth, don't hold on to them.”

—Kimberly Lucht, Business Coach

About the author: Kimberly Lucht is a business coach who helps women make their first six figures doing what they love. She’s been featured in Money, Business Insider, Well + Good, Greatist, Create & Cultivate, and more.

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This Entrepreneur Is Giving Girls the Tools to Build Long-Term Financial Wellness

You asked for more content around business finances, so we’re delivering. Welcome to Money Matters where we give you an inside look at the pocketbooks of CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on office spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.

Photo: Courtesy of Nicole Hartwig

Nicole Hartwig learned everything she knows about money from her late Aunt Lynn. “My aunt guided me through all of my financial firsts, often sitting me down with a pencil and paper, teaching me the most foundational financial principles like how to make a budget and how to set a savings goal,” Hartwig tells Create & Cultivate. “She coached me through saving up for my first car by allowing me to make ‘deposits’ into a Tupperware container she kept safe for me in her kitchen drawer.“

So when her aunt passed away in 2013 after a 25-year battle with cancer, Hartwig was inspired to help girls develop financial literacy skills as a way of honoring her late aunt and the values she lived by. “My aunt relentlessly pursued her career goals in finance, slowly working her way up with a steady determination and humble grace, all while battling breast and ovarian cancer for nearly half her life,” explains Hartwig. Thus, Capri, an app designed to teach high-school and college-aged girls financial literacy skills and cultivate confident money mindsets, was born.

Ahead, Create & Cultivate chats with Hartwig about everything from starting her business to bringing on her first hire, and everything in between.

How did you make your first dollar and what did that job teach you that still applies today?

My first job was at a local coffee shop in Metro Detroit when I was 14 or 15. They only hired team members 16 years and older, but I applied anyway. When they asked me the obligatory interview questions about past jobs, I told stories about how I’d taken care of friends during tough times or risen above challenges at school, and I got the job! That experience taught me something that I’ve carried with me ever since: you never know until you try.

Take us back to the beginning. What was the lightbulb moment for your business and what inspired you to pursue this path?

The idea for Capri came from my late Aunt Lynn, who passed away in 2013 after a 25-year battle with cancer. A true Capricorn (the inspiration for the name Capri), my aunt relentlessly pursued her career goals in finance, slowly working her way up with a steady determination and humble grace, all while battling breast and ovarian cancer for nearly half her life.

Entrepreneurship is all about taking calculated risks. What’s the most pivotal financial risk you’ve taken, and how did it change your path? 

The most pivotal risk I’ve taken was leaving my full-time job to pursue building Capri. Creating the space, both logistically in my schedule and energetically in my life, changed everything. There’s a lot of advice floating around about waiting to leave your day job until you’re really ready. The truth is that your path depends on a lot of factors: your financial situation, your drive, the opportunity you’re pursuing, your network, etc. There’s no one-size-fits-all answer for when to leave your day job to pursue the thing you’re passionate about. 

For me, creating the space was critical; it was essential to the growth of the company. As a sole founder in the early stages of a startup, there is no company without me. If I’m burned out, the company suffers. If I don’t have time to make that meeting, the work doesn’t get done. If I have no space to envision what’s next, the company has no path forward. The degree to which I make space for the creation of this company is directly correlated to our growth and success. Making space for the overall wellness of myself and the company was—and still is—one of the most important actions I’ve taken as a founder.

Where do you think is the most important area for a business owner to focus their financial energy and why?

The needs of your business change with every stage of development and each business is unique. Every founder has a unique set of circumstances within which they’re working, and their business is a direct reflection of that. 

Capri is a female-led, bootstrapped, early-stage tech startup. Within our unique set of circumstances, our most important spend was on product development, but we also chose to spend on our brand identity development at the same time. For us, this was vital. We were building brand awareness during a pandemic and we had to rely largely on our digital presence to make that happen. Many would have argued against that expenditure so early on, but for us, in our unique set of circumstances, it was what helped us establish ourselves in our launch market. 

As a business owner, you have to trust your gut, because there is no right answer out there. Everyone—founders, operators, investors—will have different advice for you. You have to follow your intuition about the next right step. 

What was your first big expense as a business owner and how should small business owners prepare for that now? 

Our first big expense was hiring a software development team to build our beta. We intentionally built a true minimum viable product, both for cost savings, and because we knew we’d make edits to the product design once we got the product in front of users. 

Aside from the design research and development that led up to our hiring decision, we also did a ton of due diligence and vetting of potential vendors. That took months and months of work. My best advice for founders preparing to build a technical product is to build in a huge cushion for the amount of time it will take!

What are your top three largest expenses every month?

Software development, graphic design, and legal expenses.

In the beginning, how much did you pay yourself and how did you know what to pay yourself? 

We’re 2 1/2 years in and I still haven’t paid myself a dollar. That’s not a badge of honor that I wear, it’s just the truth. All the capital we’ve raised has gone to product development and business expenses. We just aren’t at the stage of development where it would be appropriate to pay myself. Once we reach that stage, I’ll add in a modest salary for myself until we’re really rocking and rolling. 

Would you recommend other small business owners pay themselves? 

Of course, when it makes sense for the business. You don’t build a business to not make money, but you also don’t usually build a business just to pay yourself. You have to wait until it “pencils”—until the financials of the business support a salary. 

How did you know you were ready to hire and what advice can you share on preparing for this stage of your business? 

I made my first hire after I completed our first accelerator program. I knew I had hit a wall in my own capabilities and I needed someone to help me bring the initial design of the product to life. For every single team hire I’ve made, I’ve shopped from my first-degree network. I cannot recommend this enough. Working with colleagues and friends who were familiar with me, my character, and my working style, allowed me to forge team relationships quickly on an existing foundation of mutual trust. My best advice to other founders preparing for this stage of their business is to comb your network. Literally scroll through LinkedIn and see what your connections are up to. Reach out to people you know who are doing the scope of work that you need, and start that conversation. Expect it to take some time to gain their full trust, but know that you’ll have a headstart working with people you already know personally and/or professionally.

Did you hire an accountant? Who helped you with the financial decisions and setup? What do you recommend or advice do you have for that?

I made all of our financial decisions in the beginning, and I asked trusted people around me when I wasn’t sure how to move forward. For example, when I incorporated the company, I had to choose the total number of shares of the company. I went to business school, but I didn’t know a thing about this part. So I Googled, I made phone calls to anyone I knew who might know a thing or two about it, and I ultimately made a decision based on the information I had (and the very limited amount of money the company had in the bank). This is the beauty of starting a business—it’s truly messy! You cobble together the answer to every single question and decision, and there are a million of them, day after day. It wasn’t until we were a year or more into the business that I brought on a team member with great financial experience. Now we make those decisions together. We still learn as we go, together, and we ask questions when we don’t know the answer. 

What apps or software are you using for finances? What has worked and what hasn’t?

In the earliest stages of the business, I used Freshbooks to track what little expenses we had, and I used an Excel spreadsheet template for our financial projections. Now that we’ve raised capital, we use QuickBooks in place of Freshbooks as it’s more sophisticated for reporting purposes, but we still use the same (albeit much more customized) Excel spreadsheet to create our financial projections.

What are some of the tools you use to stay on top of your business financials? What do you recommend for small business owners on a budget?

I loved using Freshbooks in the early days of Capri! It was inexpensive, easy to use, and the interface is honestly delightful. For projections, Excel is great. Get a template from the internet or from someone working in finance or in whatever industry you’re in. If you can get someone to sit with you for a bit to explain the formulas, that’s ideal. You can then take that spreadsheet and make tweaks to it, which you’ll continue to do forever and ever. It’s actually great to familiarize yourself with making projections from the very beginning. A lot of your business success hinges on your ability to understand the relationship between various business expenses and practices.

Do you think women should talk about money and business more? Why? 

Yes! Money is still a taboo topic to talk about, and the world of startups is still so male-dominated and so mysterious. When women are profiled for being successful in business, they’ve often already slogged through the toughest part: getting started. Rarely do you hear the real story behind the buzzy headlines; the I-drained-my-401(k)-to-start-the-business story, or the I-moved-in-with-my-parents-to-save-the-company story. Those are the stories women starting businesses need to hear. They need to hear that the messiness they’re experiencing is normal. That successful women didn’t always save up the perfect emergency fund before they launched their companies, or they didn’t get a check from the first VC they had a meeting with. They need to see themselves and their situation reflected in these stories. The truth is that founders who have ivy-league connections and family members in private equity have an easier go of it. If you don’t have those things, starting a business can feel like a hopeless pipe dream. Women without those privileges have made it happen by being scrappy, creative, and persistent. The more we talk about those experiences, the more we encourage women of all backgrounds to go for it.  

Do you have a financial mentor? Do you think business owners need one? 

I do! I have several. I have one advisor who manages an angel investing group who advises me from an investor’s perspective. I have another advisor who comes from private equity and the finance industry. I have an advisor who coaches startups. And of course, my most cherished mentor is my late Aunt Lynn. Even though she’s no longer with us, her foundational teachings from my teenage years will stick with me forever, and her loving energy is still with me every day. 

What is your best piece of financial/money advice for new entrepreneurs?

First, heal your money traumas (we all have them in some form). Reflect on the past experiences and beliefs that might be holding you back. Second, listen to your intuition. It won’t steer you wrong. 

Anything else to add?

Just don’t let fear stop you. Don’t let the odds that seem stacked against you stand in your way, whatever they are. Trust—trust, trust, trust—that if you have a vision for something you want to create, you are meant to bring it into the world. Follow what lights you up.

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