By Nicole Garner Scott, MBA, CLTC®, Financial Advisor, Northwestern Mutual Goodwin, Wright
Starting a business can be one of the most rewarding things someone can do. As a financial advisor, I work with business owners regularly—and understand the challenges that can go into doing so, particularly for entrepreneurs of color. These challenges however do not necessarily define those individuals or their businesses. In fact, they can be transformed into opportunities for success, even to thrive. The goal of this article is to take readers through those challenges and how to navigate them for success in business ventures.
The Importance of Budgeting and Planning
Creating a realistic monthly budget is paramount for any entrepreneur, and it starts with understanding your cash flow. Start by listing and documenting all income sources. Those might include sales, freelance work, or any side jobs that may arise. For new entrepreneurs, consider using historical data from previous months if available, or projected income based on market research. It’s also important to categorize your expenses into fixed costs, like rent or salaries (including your own), and variable costs like supplies or marketing so you know where your money is going and where to potentially cut back.
