Financial Tips for Beginning Entrepreneurs
Updated: Nov 7, 2023
Every entrepreneurial woman seeks to have independence in her finances and be successful in her businesses. If you have not yet achieved that goal, here I will give you some of the basic tools or steps:
Vision is visualizing in your mind what you want to achieve. Vision looks to the future and has to do with goals and aspirations. Every project begins in the mind, what do I want to achieve? Where do I want to see myself positioned? What is the type of business that I am passionate about?
Planning includes a market study of the audience I want to reach. It refers to short, medium and long term goals. Determine what tools and material and financial resources I need.
Action or entrepreneurship. Here we already take the necessary steps. Brand registration, business incorporation, bank account opening, promotion, presentations and opening of your business.
Once we are clear about these three points, we can begin to develop the key FINANCIAL TIPS so that you can achieve success as a female entrepreneur:
Start with your own capital. This is ideal, especially in the first phase, which is our short-term goal. Determine how much I need to save to start my purpose. How much should I save each month, in order to achieve the initial capital I need in one year or 6 months?
The Credit. In the second stage, after we have started the business, and we are looking for the business to grow, we can consider a business loan a business line of credit. Small Business Administration provides financial programs for small businesses whose owners fall into the minority category such as women.
Determine what my debt capacity is How much income should I generate to pay that debt?
Guaranteed Loan/Credit: The loan can be secured by your own business or by some real estate or personal property, which is not be your home. It is recommended to never take a loan against your home. Your house is never touched, nor is taking a line of credit on your house a financial mistake.
Credit without guarantee or with personal guarantee: For a loan without guarantee or with your personal guarantee, good credit is required. An acceptable credit score: Excellent 750 and up, Good 750 to 749, Acceptable 650 to 699, Poor< /strong> from 550 to 649,Bad from 550 down.
The higher the credit score, the lower the interest rate and the higher the credit limit.
Some TIPS to learn how to Manage your credit are:
Never use the entire line of credit.
Always keep the used balance less than half the credit limit.
Do not pay in full, because a balance of 0.00 neither increases nor decreases the credit.
The ideal is to move the credit using and paying.
Pay on time, 3 to 5 days before the payment date.
We must keep in mind that according to studies, the first 5 years of any business are crucial, because they do not generate significant profits. But if we are persistent and disciplined, our businesses will last, grow and give us the financial freedom that every entrepreneurial woman will surely achieve.
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