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Starting a business is the greatest adventure of self-discovery you can ever undertake, but even if you know a lot and are an expert in a field, financial insights can only be imparted by someone who has been there, and financial growth is one of those key aspects.
When I started my financial education platform to teach women entrepreneurs about money, there were very few entrepreneurs like me and my opportunities to follow and follow them beyond what they were doing on social media were limited. As a financial professional, I thought I could manage it because I had “everything” I needed to grow financially without any hitches along the way. After all, I had gone to college and been involved in the world of finance since high school, but that was far from the reality.
If you’re a Black, Brown, or woman of color entrepreneur, your financial journey is directly related to a variety of factors, including your identity, your and your family’s beliefs around entrepreneurship and money, and how you adapt all of your subconscious habits around money, including your relationship with money, yet no one talks about it, which can take years of trial and error and hinder your ability to grow your business, build your confidence, and build a strong foundation as an entrepreneur.
Here are five key insights that I wish fellow entrepreneurs had shared with me: Navigating the financial industry as a black founder.
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Our relationship with money influences economic growth
How we relate to money – the meanings, beliefs, interpretations, and ways we create that relationship – is essential to our path to financial growth as a Black woman entrepreneur. Early on in my entrepreneurial journey, I didn’t fully understand how my beliefs, perspectives, and financial identity influenced business decisions that directly related to money, like pricing, and decisions that indirectly related to money, like showing up to promote my programs.
Let’s take a moment to analyze. Are you one of those people who runs every strategy on the market on autopilot, but hates talking about money, finding the right pricing methods, checking your bank account, and making a financial plan? Then it’s time to re-examine your relationship with money.
Family beliefs about money and entrepreneurship need to be filtered
Your relationship with money, how you think about entrepreneurial opportunities, how you manage your money, and many other skills needed to grow a business have been developed for as long as you can remember. From how you think about money to how you deal with financial risks, setbacks, and other mental and emotional rollercoasters, you need to be your own best advocate when the opinions and advice coming from your closest friends don’t align with your direction or support the direction you want to go.
The best way to filter these opinions is to evaluate what advice, beliefs, actions, and opinions are worth listening to (and likely to help you move forward toward your goals) based on your vision and financial goals. If they don’t apply, there’s no room for them.
For example, what is the point of saying, “We have to offer family prices”? I don’t think this has helped me in my career. Quite the opposite. It brings a lot of guilt and shame, so I’ve been trying to get rid of it since the first year of my business.
Related: 5 Pioneering Black Women Entrepreneurs Share How They’re Breaking Barriers—And How You Can, Too
Having a supportive community is key
As an entrepreneur, you’re doing something that most people we know aren’t doing: you need to start having the right conversations with the right people in order to grow financially.
The issues that are occupying your mind and the insight you need to find a better, more cost-effective system or get out of your head are all in the community.
Surround yourself with like-minded entrepreneurs and mentors who understand your challenges and can guide you, but most importantly, a community that understands your unique challenges as a Black entrepreneur, being independent and feeling the realities of paying the bills at the same time. Join networking groups, listen to podcasts and get involved in the community, attend industry events, and participate in online forums that reflect where you want to be financially and where you want to take your business.
Financial planning is essential for financial growth
One thing I learned in school, and reaffirmed on this path, is that financial planning is non-negotiable from the beginning if you want to grow. A lot of the emotional aspects of money are triggered by your desire and motivation to grow your business. Whether it’s buying your next course, signing up for a platform, buying your next piece of equipment, or spending money on advertising when the time is not right, money planning is your best ally in all these cases. It’s essential to have a foundation to fall back on and settle down on when the urge to make extra purchases or investments speeds up your financial growth.
Don’t make it too complicated. Shift your focus from “making money” to assigning and tracking numbers.
Related: “I’m Black. I’m a woman. Let’s talk about raising venture capital.”
Business goals are just as important as revenue goals
One of the habits I’m most committed to changing with my community is shifting our focus from a revenue-driven mindset to broadening our scope and thinking about how we manage the money we make. As entrepreneurs, we’re exposed to a lot of marketing, information, and sometimes metrics that emphasize revenue as a way to measure growth, but learning how to manage income that isn’t pocket money, a one-time lucky break, or income that “I’ll never have this amount of money again” is key to your finances.
Balance the pursuit of revenue with a solid plan for sustainably managing and growing your business.
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