The Growing Landscape of African American Women-Owned Businesses

Black entrepreneurs own 15% of U.S. microbusinesses. With Black women accounting for over two-thirds of those businesses, this represents 68% of Black-owned microbusinesses. Black female entrepreneurs are the fastest-growing group of entrepreneurs in the United States, with their numbers more than doubling since August 2019. Black women make up less than 10% of the U.S. population, yet they have emerged as the fastest-growing group of entrepreneurs.Between 2017 and 2020, the number of Black women-owned businesses increased by nearly 20%, far exceeding the growth of women-owned businesses and Black-owned businesses overall, as reported by the Brookings Institution. However, the average revenue of Black women-owned businesses remains significantly lower than that of all women-owned businesses.While the number of businesses owned by Black women is on the rise, many face significant barriers in accessing essential financial resources, like loans and grants. These statistics highlight the pressing obstacles Black women face in securing capital.Despite their entrepreneurial spirit and increasing business ownership, Black women often struggle to access the financial capital necessary to launch and sustain their businesses. This issue is made worse by systemic barriers and a challenging economic environment that disproportionately affects their businesses.
To help address these challenges, here are some practical tips for Black women business owners seeking to access capital:

• Research Potential Lenders: Identify lenders that align with your business needs and values. Consider factors such as interest rates, loan terms, and requirements.
• Prepare Financial Documents: Have your financial statements, business plan, and credit reports ready to present a strong case to potential lenders.
• Explore Grant Programs: Look for grant opportunities specifically aimed at supporting Black women entrepreneurs or your industry to supplement your funding.
• Seek Non-Monetary Support: Investigate resources such as free business advising, educational articles, and courses available.

Challenges in Securing Financial Capital

Securing financial capital is one of the biggest challenges for Black women entrepreneurs. Research shows that the obstacles these business owners face can be grouped into several main areas:

Access to Funding

Despite their strong entrepreneurial spirit, Black women often run into barriers when seeking funds for their businesses. Studies reveal that minority-owned businesses frequently deal with higher rates of loan denials, tougher lending standards, and less favorable terms compared to white-owned businesses, and particularly stricter conditions than those faced by white women. The view of minority-owned businesses as high-risk can lead lenders to hesitate, resulting in lost opportunities.

Systematic Bias

Bias within lending institutions complicates the funding situation even more. Many banks and financial organizations are swayed by stereotypes, seeing businesses owned by Black women as less credible. This bias often causes longer processing times, more scrutiny on loan applications, and extra requirements that do not apply to others.

Limited Credit History

Many Black women entrepreneurs start their businesses with little or no credit history, which makes it hard to access traditional funding sources. Gaps in personal wealth make this worse, as many do not have the savings or collateral needed to secure loans.

Network Barriers

Having access to strong professional networks can improve chances for funding. However, Black women often face challenges in networking, such as fewer connections to venture capitalists, angel investors, or mentorship from successful peers, which can hinder their growth. This lack of mentorship leaves them without guidance or support in navigating the lending landscape.

Socioeconomic Factors

Black women also face many socio economic challenges, like higher unemployment rates and lower incomes. These issues limit their ability to invest in their businesses, obtain loans, or manage operational costs.

Historical Disparities

Long-standing inequalities, especially in lending practices, play an important role as well. For years, African Americans have faced discrimination in getting loans and investments, contributing to ongoing wealth gaps and disparities in funding opportunities for businesses.

Why are Blank women starting new businesses?

Despite these challenges, many Black women are driven to entrepreneurship for a multitude of reasons, illustrating an inspiring fusion of passion and resilience:

• Desire for Independence and Flexibility: Many entrepreneurs pursue business ownership to escape traditional employment constraints, which allows for greater flexibility in their work lives. This sense of independence can empower women to create their own paths without being confined by workplace limitations.
• Social Change and Community Development: Many women entrepreneurs are motivated to positively affect their communities. By starting their businesses, they seek to provide jobs, offer essential services, and inspire the next generation of female and minority entrepreneurs.
• Personal Growth and Empowerment: The journey of entrepreneurship is often about self-discovery and personal growth. Many Black women find empowerment through ownership. Enabling them to develop new skills, enhance their identity, and establish their reputations in their respective fields.
• Building Legacy: For many women, entrepreneurship is rooted in a desire to create a lasting legacy for their families. Starting a business can provide not only financial stability, but also generational wealth. Passing down a legacy through families offers an opportunity to break long standing cycles of poverty.

Introduction to Your Path Forward

As you embark on your journey, it’s crucial to recognize that understanding your challenges are only the first step. Your path to success thrives on actionable insights that can empower you to navigate the complexities of business ownership with confidence. That’s why we’ve established clear steps designed specifically for small business owners like you—steps that will not only resonate with your experiences but also equip you with practical strategies to overcome obstacles and succeed in your business ventures.Let’s explore four key steps that can guide you on your business funding journey:

Step 1: Understand the Funding Landscape

Gain a comprehensive understanding of various funding sources available to you, including grants, loans, and alternative financing options.

As a Black woman entrepreneur, gaining a comprehensive understanding of the various funding sources available to you is vital for your business’s success. Navigating the world of finance can be daunting, but knowing your options empowers you to make informed decisions.

• Grants as a Funding Source: Grants are a fantastic source of funding because they do not need to be repaid. Various organizations, including government entities, nonprofits, and private foundations, specifically offer grants to support Black women entrepreneurs. Research grant opportunities that align with your business goals, industry, and community impact. Many grant programs require specific applications, so be prepared to present your business plan clearly and compellingly.
• Loans as a Funding Source: Understanding different types of loans is crucial. Traditional bank loans typically offer lower interest rates but may require extensive documentation and a robust credit history. If you aren’t ready for a bank loan, explore alternative lenders, including community development financial institutions (CDFIs) and microlenders, that cater to minority business owners. These lenders often have more flexible terms and can provide personalized support to help you through the application process.
• Alternative Financing Options: In addition to grants and loans, consider alternative financing methods that may suit your needs. Crowdfunding platforms allow you to raise small amounts of money from a large number of people, often in exchange for rewards or products. Peer-to-peer lending is another option, connecting borrowers directly with investors who are willing to fund their projects. Additionally, exploring options like invoice financing or business credit cards can provide immediate cash flow support when needed, if you have solid credit and a good relationship with your vendors or payment processor.
• Financial Support Programs: Many organizations offer support programs specifically designed for Black women entrepreneurs, so take advantage of these resources. Look for initiatives that provide financial literacy training, mentorship, and access to potential investors. Engaging with these programs not only enhances your financial knowledge but also helps build a supportive network

Step 2: Enhance Financial Literacy

 Enhancing your financial literacy is crucial for the long-term success and sustainability of your business. By gaining a solid foundation in financial management, budgeting, and credit building, you’ll be better equipped to make informed decisions and grow your business

Step 3: Networking and Community Building

Engaging with networks that support Black women entrepreneurs is essential for both personal and professional growth. Building a strongcommunity can provide you with the resources, encouragement, and connections needed to thrive in your entrepreneurial journey. 

• Local Business Groups like National Black Chamber of Commerce (NBCC) and Association of Women’s Business Centers offer workshops and networking events to connect with wallow entrepreneurs. 

Step 4: Promote Mental Wellness

Acknowledge the psychological challenges that come with entrepreneurship and explore tools for resilience, stress management, and self-care.

• Mindfulness and Meditation: Incorporating mindfulness techniques can help manage stress and maintain focus. Tools like Headspace offer guided meditation sessions designed specifically for relaxation and mental clarity. Similarly, Calm provides a variety of stress relief techniques, including sleep stories and calming music to help users unwind.
• Seeking professional help can be vital for mental wellness. Therapy for Black Girls is an excellent online directory that connects Black women with culturally competent therapists and mental health resources. Additionally, the Black Women’s Health Imperative focuses on promoting health and wellness among Black women, offering mental health resources tailored to their unique experiences.
• Effective stress management is crucial for maintaining mental wellness. Project management tools such as Trello and Asana can assist in organizing tasks and improving time management, reducing feelings of being overwhelmed.
• Incorporating self-care into daily life is essential for emotional health. Resources like Fitness Blender provide free workout plans that promote physical wellness, which is closely tied to mental health. Furthermore, Nutrition.gov offers tips on healthy eating and meal preparation, emphasizing the importance of nutrition in self-care.

Remember, your journey is not just about business; it’s about breaking barriers and redefining success. Each step you take empowers not only yourself but also those who will follow in your footsteps. Embrace your unique strengths, seek out the support you need, and stand firm in your vision. You have the power to create change, inspire others, and leave a lasting legacy.

Promoting Resilience: Accion Opportunity Fund as a Resource

Accion Opportunity Fund is committed to addressing the unique challenges faced by Black women entrepreneurs- and all minority and women business owners- and is dedicated to fostering economic empowerment through access to financial resources and educational support. The organization’s mission is particularly critical, given the barriers this demographic faces in securing funding.Key offerings provided by Accion Opportunity Fund include:

Access to Capital

Accion Opportunity Fund connects entrepreneurs with various funding opportunities, including grants, loans, and educational resources tailored to their specific needs. This initiative directly addresses the financial barriers identified in earlier sections.

Business Development Programs

The organization offers numerous educational programs and workshops that equip entrepreneurs with essential business management knowledge, marketing strategies, operational skills, and financial literacy. These programs help cultivate the necessary skills for sustainable business growth.

Networking Opportunities

Through our in person events and educational programs that connect entrepreneurs with established industry leaders, and potential investors, Accion Opportunity Fund fosters a supportive network designed to open doors for African American women entrepreneurs.

Advocacy and Policy Change

We actively advocate for policies and programs that promote equitable access to funding for minority-owned businesses. This advocacy work is crucial in combating systemic barriers and disparities in the lending landscape.

Business Coaching Programs

We connect aspiring entrepreneurs with business coaches who can provide guidance, encouragement, and support throughout the entrepreneurial journey. This advisor network helps build confidence and enhances the probability of success for new business ventures.

Success Stories and Community Support

We are proud to share the success stories of Black women who have overcome challenges to achieve their business goals. By sharing these stories, we hope to inspire other women to follow their dreams.

Case Study: Success Through Accion Opportunity Fund

The story of Natasha Case, Co-founder and CEO of Coolhaus and former AOF client and board member, exemplifies the impact of Accion Opportunity Fund. Transitioning from a trained architect to “the ice cream lady,” Natasha combined her passions for food and design after a professor compared her model to a layer cake. This sparked the idea of “Farchitecture” and led to the launch of Coolhaus, reflecting their identities as millennials, women, and LGBTQ+ individuals.Starting during the Great Recession, Natasha faced funding challenges due to gender and age biases from traditional banks. Discovering Accion Opportunity Fund (AOF) provided her with critical financial support, enabling her to finance multiple trucks and grow her business to $15 million in revenue.AOF not only offered funding but also a supportive community. Natasha shared her journey at a major conference in 2012, leading to networking opportunities. By 2014, she joined AOF’s board to mentor women entrepreneurs and help them overcome common psychological barriers.Today, Coolhaus boasts products in 6,000 grocery stores and a national fleet of ice cream trucks. Natasha’s journey underscores the potential of female entrepreneurs to realize their dreams, a mission that aligns with AOF’s vision. For more on her entrepreneurial path, see the full article here.

Celebrating Successes and Breaking Down Stereotypes

Black women-owned businesses are breaking down stereotypes and shattering glass ceilings in the business world. Despite facing unique challenges, such as limited access to capital and resources, Black women entrepreneurs are proving themselves to be resilient and determined. According to the Wells Fargo Impact of Women-Owned Businesses report, Black women-owned businesses grew 32.7% between 2019 and 2023, outpacing the growth of women-owned businesses (7.1%) and Black-owned businesses (4.1%) during the same period.The success of Black women entrepreneurs is not limited to their business growth. They are also making a positive impact on their communities, creating jobs, and promoting financial literacy among young people. 

The Future of Black Women Owned Businesses

The future of Black women-owned businesses looks bright. With the support of organizations like the Nasdaq Entrepreneurial Center (NEC) and Wells Fargo, Black women entrepreneurs are gaining access to the resources and networks they need to succeed. The NEC’s Milestone Circles program, for example, has connected over 4,000 women business owners to powerful peer networks and has helped them improve their businesses.As the number of Black women-owned businesses continues to grow, it is likely that we will see more Black women entrepreneurs breaking into new industries and creating innovative products and services. For example, Pinky Cole, CEO and founder of Slutty Vegan, has disrupted the food industry with her plant-based comfort food restaurant, which has seven brick-and-mortar locations in Atlanta, Birmingham, Alabama, and Brooklyn, New York.

Empowering Black Women Through Education and Resources

Empowering Black women through education and resources is critical to the success of Black women-owned businesses. Organizations like the NEC and Wells Fargo are providing Black women entrepreneurs with access to training, mentorship, and capital. For example, Saundra Gilliard, founder of Femininely Free!, started her business in early 2020 and turned to Milestone Circles for help. Through the program, she was able to improve her business alongside a “circle” of fellow entrepreneurs.In addition to these programs, there are also many online resources available to Black women entrepreneurs, such as the Wells Fargo Impact of Women-Owned Businesses report, which provides insights and data on the state of women-owned businesses. By providing Black women entrepreneurs with access to education and resources, we can help them overcome the unique challenges they face and achieve success in the business world.

Empowering Black Women Entrepreneurs through Access to Capital, Business Development, and Networking Opportunities

The journey of Black women entrepreneurs is characterized by resilience, determination, and a commitment to overcoming barriers. Their challenges in securing financial capital highlight systemic inequalities in the banking and entrepreneurial ecosystems. Nevertheless, the empowerment derived from entrepreneurship drives many to seek change—not just for themselves but for their communities.To drive meaningful change, it is essential to advocate for increased access to capital, education, and networking opportunities for Black women in business. This approach enriches not only their enterprises but also the economic landscape as a whole, creating pathways for future generations and ensuring that diverse voices are heard and valued in the entrepreneurial narrative.As we reflect on the impactful contributions of Black women entrepreneurs, it is essential to recognize the role that organizations supporting business growth play in fostering a more equitable future for all business owners. By supporting these initiatives, we can help create a landscape where diverse entrepreneurs thrive, ultimately contributing to a more inclusive and vibrant economy. Together, we can empower business owners with the resources and community support they need to succeed.

With the rising popularity of food trucks as a convenient and trendy dining option, many aspiring entrepreneurs are eager to jump into the mobile food business. However, starting a food truck requires careful planning, strategic decision-making, and a solid understanding of the industry. In this guide, we’ll explore the essential steps to start a food truck venture, featuring insights from Alison Rosario and Conroy Outar, owners of JA Patty, a thriving food truck in Rhode Island.

Business Planning: Start a Food Truck

Before hitting the streets with your food truck, it’s crucial to develop a comprehensive business plan that outlines your concept, target market, financial projections, and operational strategy. Here are some key considerations to include in your business plan as you start a food truck:

• Define Your Concept: Determine the type of cuisine you’ll serve and what sets your food truck apart from the competition. Alison and Conroy’s vision for JA Patty was to introduce authentic Jamaican flavors to Rhode Island in a way that is still accessible and approachable to their community.
• Research Your Market: Conduct thorough market research, leveraging tools such as surveys and industry reports, to identify potential customers, accurately assess demand for your offerings, and evaluate the competition in your area.
• Create a Budget: Estimate your startup costs, including the purchase or rental of a food truck, equipment, licenses, permits, and initial inventory. Consider factors such as fuel, maintenance, and insurance expenses. Alison and Conroy juggled multiple jobs while launching JA Patty to make the financials work. They emphasized the importance of accessing funding and information resources.
• Market Analysis: Research your target market, competitors, and potential locations to identify opportunities and challenges. Attend food truck events, network with fellow entrepreneurs, and gather feedback from potential customers. Alison and Conroy participated in networking events and programs like the Brewing the American Dream Bootcamp to gain valuable insights and support from others in the food and beverage industry.
• Set Financial Goals: Determine your pricing strategy, revenue targets, and break-even point to ensure profitability.

Finding Small Business Funding

Securing financing for your food truck venture is a crucial step in turning your business idea into reality. Every business should evaluate their unique situation and needs when choosing a potential source of funding. Consider the following options for funding:

• Personal Savings: Use your savings or personal funds to cover startup costs and initial expenses. Alison and Conroy juggled day jobs for years while they were launching JA Patty before they were able to go full time with the business.
• Small Business Loans: Explore loan options from banks, credit unions, or online lenders to finance your food truck purchase or operational expenses. Accion Opportunity Fund offers small business loans to established businesses in need of capital.
• Crowdfunding: Launch a crowdfunding campaign on platforms like Kickstarter or Kiva to raise capital from supporters and potential customers.
• Investors: Seek investment from angel investors, venture capitalists, or friends and family members who believe in your business concept.

Finding a Truck

Choosing the right food truck is essential for the success of your business. Consider factors such as size, layout, kitchen equipment, and mobility. Whether you opt for a new custom-built truck or a used vehicle that requires customization, prioritize functionality, durability, and compliance with health and safety regulations. Research the following when purchasing a food truck:

• Size and Layout: Determine the optimal size and layout of your truck by creating a visual diagram that incorporates your menu offerings, necessary cooking equipment, and storage needs, ensuring an efficient workflow.
• Condition and Maintenance: Inspect the truck for any mechanical issues or structural damage, and ensure it meets health and safety regulations.
• Customization: Consider customizing the truck with branding, signage, and features that reflect your brand identity and attract customers. When you start a food truck, you are also starting a brand.
• Cost and Financing: Compare prices from different sellers and explore financing options, such as leasing or financing through a dealership. Based on your business plan and financial projections, know what you can afford to pay each month before you start shopping.

Licensing and Permits

Obtaining the necessary licenses and permits is crucial to start a food truck and operate it legally. Research and comply with local, state, and federal regulations regarding food handling, sanitation, zoning, and business operations. Alison and Conroy emphasized the importance of understanding and adhering to regulatory requirements while scaling your business. Here’s what you’ll need:

• Business License: Register your food truck business with the appropriate local, state, and federal authorities.
• Health Permit: Obtain a health permit from your local health department to ensure compliance with food safety regulations.
• Parking Permits: Secure permits for parking and vending in designated areas or events, such as festivals, markets, and private venues.
• Food Handler’s Permit: Ensure that you and your staff obtain food handler’s permits or certifications to handle and prepare food safely.

Best Food Truck Locations

Choosing the right locations to park your food truck can significantly impact your sales and visibility. Identify high-traffic areas, popular events, office complexes, and entertainment venues where your target customers gather. Experiment with different locations, schedules, and promotional tactics to attract and retain customers. Consider these factors when selecting locations:

• Target Audience: Identify areas with high foot traffic, such as downtown business districts, college campuses, or popular tourist destinations, where your target audience is likely to be.
• Events and Festivals: Participate in local events, festivals, and food truck rallies to reach a larger audience and generate buzz for your business.
• Collaborations: Partner with local businesses, breweries, or community organizations to host pop-up events or food truck roundups.
• Social Media: Utilize social media platforms to communicate your location schedule, menu updates, and special promotions to followers and customers.

Marketing Strategies

Effective marketing is key to attracting customers and building a loyal fan base for your food truck. Utilize social media platforms, local events, food festivals, and partnerships with other businesses to promote your brand and menu offerings. Engage with your audience, solicit feedback, and cultivate a strong community around your food truck. Consider these marketing strategies:

• Branding and Logo Design: Develop a strong brand identity and logo that reflects your unique concept and resonates with your target audience.
• Social Media Marketing: Establish a presence on social media platforms like Instagram, Facebook, and Twitter to showcase your menu items, engage with customers, and promote upcoming events.
• Website and Online Ordering: Create a mobile-friendly website where customers can view your menu, place orders online, and find information about your food truck schedule and locations.
• Email Marketing: Build an email list of customers and subscribers to send updates, promotions, and special offers directly to their inbox.
• Collaborations and Partnerships: Collaborate with local influencers, bloggers, or businesses to reach new audiences and increase visibility for your food truck.

Mission and Brand

With over a decade of experience in the food industry, Alison Rosario and Conroy Outar, owners of JA Patty, illustrate how their expertise in Caribbean cuisine has allowed them to effectively bridge cultural divides and foster community connections through their food truck.

By sharing authentic Jamaican flavors and incorporating feedback from their local community, they’ve built a successful food truck business that celebrates diversity and inclusivity. JA Patty evolved their logo over time, to reflect their most popular product, their patties.

Here’s how you can draft your own mission statement and make sure your mission comes through in your brand:

• Understand Your Values: Begin by identifying the core values and beliefs that drive your business. What principles are most important to you and your team? Your mission should align closely with these values to create authenticity and resonance.
• Define Your Purpose: Clarify the purpose or reason for your business’s existence beyond making profits. Consider the impact you want to have on your customers, community, or industry. Your mission should reflect this purpose and inspire both internal stakeholders and external audiences.
• Craft a Clear Mission Statement: Develop a concise and compelling mission statement that encapsulates your values, purpose, and goals. Keep it simple, memorable, and impactful. A well-crafted mission statement serves as a guiding light for decision-making and helps stakeholders understand the essence of your brand.
• Integrate Your Mission into Branding: Incorporate your mission into your brand identity, messaging, and visuals. Your mission should be evident in your logo, website, marketing materials, and customer interactions. Consistent reinforcement of your mission strengthens brand recognition and fosters customer loyalty.
• Communicate Authentically: Communicate your mission authentically and transparently with your target audience. Share stories, testimonials, and examples that illustrate how your business lives out its mission in action. Authenticity builds trust and credibility, fostering stronger connections with customers and stakeholders.

A clear mission is crucial for business success as it serves as a guiding light, directing strategic decisions and daily operations. By differentiating your brand, engaging employees, building customer loyalty, and driving growth, a well-defined mission creates a strong foundation for sustainable success. It resonates with customers, inspires employees, and attracts stakeholders who share your vision, fostering a sense of purpose that propels your business forward.

Community

Community support has been instrumental in JA Patty‘s success, with customers providing valuable feedback to refine their menu offerings and business operations. Alison and Conroy emphasize the importance of community engagement and collaboration in shaping their vision for a brick-and-mortar establishment. Here are some great ways to connect with your local community:

• Engage with Local Events: Participate in community events, festivals, and farmers’ markets to connect with locals and showcase your food truck. Engaging with these events not only exposes your business to a broader audience but also allows you to build relationships with other vendors and community members.
• Host Pop-Up Events: Organize pop-up events in different neighborhoods or community spaces to introduce your food truck to new audiences. These events create buzz, generate excitement, and provide opportunities for face-to-face interactions with customers, fostering a sense of community around your brand.
• Collaborate with Local Businesses: Partner with nearby businesses, such as breweries, coffee shops, or retail stores, to cross-promote each other’s offerings. Collaborative events, joint promotions, or co-branded products can strengthen ties within the community and attract new customers to your food truck.
• Support Local Causes: Get involved in local charity events, fundraisers, or community initiatives to give back to the neighborhoods you serve. Whether it’s donating a portion of your sales, sponsoring an event, or volunteering your time, supporting local causes demonstrates your commitment to the community and builds goodwill among customers.
• Utilize Social Media and Online Platforms: Leverage social media platforms and online communities to engage with your audience, share updates about your food truck, and foster a sense of community online. Encourage customers to share their experiences, photos, and reviews, and respond to their feedback promptly to cultivate a loyal and engaged following.

To start a food truck business requires passion, perseverance, and a willingness to adapt to challenges and opportunities along the way. By following these essential steps and learning from the experiences of entrepreneurs like Alison and Conroy, you can embark on your own journey to culinary entrepreneurship with confidence and determination.

Take the first step! Soon, you’ll be well on your way to launching a successful food truck business that delights customers, drives sales, and leaves a lasting impression in the competitive mobile food industry. So, roll up your sleeves, fire up the grill, and get ready to embark on an exciting culinary adventure with your very own food truck!

Learn More

When it comes to your finances, you want clear guidance and easy to implement tools based on your unique needs. Visit Learn with AOF to get started strengthening your financial management and meeting your goals.

Experience a different kind of financial education. Learn with AOF has flexible, on-demand courses developed by small business owners, for small business owners. Learn on your schedule, with no time commitment or limit. Save your progress any time to fit courses into your busy schedule.

Running a small business is challenging, and time is always precious. That’s why understanding your financial statements is not just important – it’s essential for your success. Financial fundamentals can help you prepare for capital and guide your business in the right direction. This article will help you grasp the essentials of financial documentation without spending countless hours deciphering complex jargon. You’ll learn how to create a profit and loss statement, financial projections, cash flow statement, and a balance sheet in a way that’s straightforward and time-efficient.

We believe it doesn’t take an accounting wiz or a math genius to get a few core pieces in place that will set your business up for long-term success. Gain the knowledge and tools to make informed decisions, identify opportunities for growth, and steer your business with confidence.

 

 

Meet the Experts

Andrew Morse

Andrew Morse is a Senior Vice President at Global Atlantic, a leading annuity and life insurance company.  Andrew began his career as an auditor for PricewaterhouseCoopers for 5 years, was controller for the not-for-profit company BELL Excel for an additional 6 years, and most recently has held various roles, all in financial reporting, or planning and analysis, at Global Atlantic for the past 10 years.  In his current role, Andrew leads a large team and collaborates frequently with various functions and customers inside and outside of the company.

Oren Shani

Oren Shani is a credit advisor and certified business coach with Accion Opportunity Fund. Oren has 10+ years of experience managing businesses and advising other business owners. He started, managed, and expanded his own business, providing disability accommodations for live events across the country. He now helps entrepreneurs launch and grow their own businesses.

Importance of Good Bookkeeping Practices

Many entrepreneurs and small business owners are so busy running the day-to-day operations of a business that they don’t always have time or bandwidth to work on growing their business. Small business owners who develop the skill set to take a step back and work on their business are better able to meet their business goals. Implementing an organized financial management system has many benefits: 

• Frees up time
• Reduces stress​ 
• Set up for quicker customer payments
• Pay vendors on time
• Eases financial reporting​ 
• Simplifies taxes​ 
• Informs strategic decisions​ 
• Attracts lenders/investors​ 

There are many tools you can use to help you implement an organized financial system, including apps and software programs.

Fundamental Financial Statements For Small Businesses

Financial statements are crucial tools for understanding the financial health of your business. Let’s explore the basics of financial statements, including understanding profit and loss, balance sheets, and cash flow statements.

Profit and Loss

What is a Profit and Loss Statement?

A profit and loss statement, also known as an income statement, provides a summary of your business’s revenues, expenses, and net income over a specific period. It helps you track the profitability of your business operations within a given timeframe. Understanding your profit and loss statement is crucial for assessing your business’s financial health and performance. Let’s delve into the various aspects of the profit and loss statement:

 

How to Make a Profit and Loss Statement for Small Business

The basic formula for a profit and loss statement is Revenue – Expenses = Net Income. Here’s what goes into each of those figures:

Revenue:

• Include all sources of income, such as sales, services rendered, and interest earned.
• Break down revenue by product or service category for better insights.

Expenses:

• Categorize expenses into fixed (e.g., rent, salaries) and variable (e.g., utilities, raw materials).
• List operating expenses, including marketing, utilities, rent, wages, and supplies.
• Include non-operating expenses like interest payments and taxes.
• Includes both direct and indirect expenses.

Subtract total expenses from total revenue to determine net income. A positive net income indicates profitability, while a negative net income signals losses.

 

How to Use a Profit and Loss Statement for Small Business

Performance Evaluation:

• Analyze trends in revenue and expenses to identify areas of strength and weakness.
• Compare current results with past periods to gauge business growth or decline.

Decision Making:

• Use insights from the profit and loss statement to make informed decisions about pricing, cost-cutting, and investment.
• Adjust business strategies based on profitability trends to maximize earnings.

Financial Planning:

• Forecast future revenue and expenses based on historical data to develop realistic budgets and financial goals.
• Set benchmarks for revenue targets and expense control measures.

Key Profit and Loss Calculations

Key calculations include gross profit margin, net profit margin, and earnings before interest, taxes, depreciation, and amortization (EBITDA). You can use these calculations to give you a quick check of the financial health of the business.

Gross Profit Margin:

• Formula: Gross Profit Margin = (Gross Profit / Revenue) * 100
  • Gross Profit: Gross Profit = Revenue – Cost of Goods Sold
• Definition: Gross Profit Margin measures the percentage of revenue that exceeds the cost of goods sold.

Operating Profit Margin:

• Formula: Operating Profit Margin = (Operating Profit / Revenue) * 100
  • Operating Profit: Operating Profit = Gross Profit – Operating Expenses
• Definition: Operating Profit Margin indicates the percentage of revenue remaining after deducting operating expenses.

Net Profit Margin:

• Formula: Net Profit Margin = (Net Profit / Revenue) * 100
  • Net Profit: Net Profit = Revenue – Total Expenses
• Definition: Net Profit Margin represents the percentage of revenue that remains as net profit after accounting for all expenses.

Understanding the components and insights provided by your profit and loss statement empowers you to make informed decisions and steer your business towards sustainable growth and profitability.

 

Balance Sheets

What is a Balance Sheet?

A balance sheet provides a summary of what your business owns (assets), owes (liabilities), and its net worth (equity) at a given moment. It follows the fundamental accounting equation: Assets = Liabilities + Equity.

 

How to Make a Balance Sheet for Small Business

Compile a balance sheet by listing your assets and liabilities. Then, subtract liabilities from assets to calculate your equity.

Assets:

• List current assets (e.g., cash, inventory, accounts receivable) and long-term assets (e.g., property, equipment, investments).
• Classify assets based on liquidity, with current assets being more liquid than long-term assets.

Liabilities:

• Include current liabilities (e.g., accounts payable, short-term loans) and long-term liabilities (e.g., mortgages, bonds).
• Categorize liabilities by due date and interest rate to assess repayment obligations.

Equity:

• Calculate equity by subtracting total liabilities from total assets.
• Equity represents the owner’s stake in the business and can include retained earnings and capital contributions.

How to Use a Balance Sheet for Small Business

Use the balance sheet to assess your business’s financial health, monitor changes in assets and liabilities, and evaluate your capital structure. It can help you make strategic decisions and secure financing.

Financial Health Assessment:

• Evaluate liquidity by comparing current assets to current liabilities. Liquidity is important when it comes to your business’ ability to respond to emergencies and jump on opportunities.
• Assess business long term ability to meet it’s financial obligations by analyzing the debt-to-equity ratio and debt coverage ratios.

Investor and Creditor Relations:

• Share the balance sheet with investors and creditors to demonstrate financial stability and creditworthiness.
• Use the balance sheet to negotiate favorable loan terms or attract potential investors.

Strategic Decision Making:

• Identify areas for growth or cost reduction by reviewing asset composition and debt levels.
• Make informed decisions about financing, investment, and business expansion based on balance sheet insights.

Key Balance Sheet Calculations

Key calculations include the debt-to-equity ratio and the current ratio:

Current Ratio:

• Formula: Current Ratio = Current Assets / Current Liabilities
• Definition: Current Ratio measures a company’s ability to cover short-term liabilities with its short-term assets.

Debt-to-Equity Ratio:

• Formula: Debt-to-Equity Ratio = Total Liabilities / Total Equity
• Definition: Debt-to-Equity Ratio assesses the proportion of debt used to finance the business compared to equity.

A thorough understanding of your balance sheet enables you to gauge your business’s financial strength, make strategic decisions, and maintain healthy relationships with stakeholders.

 

Cash Flow Statements

What is a Cash Flow Statement?

The cash flow statement records cash inflows and outflows from operating, investing, and financing activities. It highlights changes in cash balances and helps assess the business’s ability to generate and manage cash. Cash flow statements are also used as the basis for many financial projections. Here’s a closer look at the components and utility of the cash flow statement:

 

How to Make a Cash Flow Statement for Small Business

Prepare a cash flow statement

by categorizing cash inflows (such as sales revenue and investments) and outflows (such as expenses and loan payments). You can use accounting software or templates to make this process easier.

Operating Activities:

• Record cash receipts and payments related to core business operations, such as sales, purchases, and expenses.
• Adjust net income for non-cash items like depreciation and changes in working capital.

Investing Activities:

• Document cash transactions associated with the acquisition or sale of long-term assets, investments, and loans.
• Include purchases of property, equipment, and securities, as well as proceeds from asset sales.

Financing Activities:

• Capture cash flows from borrowing, repayments, equity financing, and dividend payments.
• Record proceeds from loans, issuance of stock, and dividends paid to shareholders.

How to Use a Cash Flow Statement for Small Business

Use the cash flow statement to manage cash flow effectively, identify cash shortages or surpluses, and plan for future financial needs. It can also help you make informed decisions about investments and financing.

Cash Management:

• Monitor cash inflows and outflows to ensure sufficient liquidity for daily operations and planned expenses.
• Identify periods of cash surplus or shortage and adjust spending or financing activities accordingly.

Financial Planning:

• Use cash flow projections to anticipate future cash needs and plan for contingencies or expansion.
• Evaluate the impact of different scenarios on cash flow, such as changes in sales volume or operating expenses.

Key Cash Flow Statement Calculations

Key calculations include operating cash flow (cash generated from core business activities), investing cash flow (cash used for investments), and financing cash flow (cash from or used for financing activities).

Operating Cash Flow:

• Formula: Operating Cash Flow = Net Income + Non-cash Expenses – Changes in Working Capital
• Definition: Operating Cash Flow represents the cash generated or used by the company’s core operations.

Free Cash Flow:

• Formula: Free Cash Flow = Operating Cash Flow – Capital Expenditures
• Definition: Free Cash Flow measures the cash remaining after accounting for capital expenditures necessary to maintain or expand the business.

Mastering your cash flow statement empowers you to optimize cash flow, plan for future financial needs, and maintain financial stability in your business operations.

 

Financial Statement Calculations and Ratios

Calculations and ratios from financial statements are powerful tools to drive business decisions and prompt action, especially when compared over time. There are a lot of financial ratios and key calculations out there and it is easy to get overwhelmed by the number of different financial ratios. However, not all ratios are relevant to your current business goals. Identify the two or three ratios that are most relevant to your current state of business and business challenges and follow those closely. An accountant, bookkeeper, or business coach should be able to help you identify the most relevant ratios and calculations for your current business needs.

 

All Financial Statements are Important

Understanding financial statements is essential for all business owners. However, it’s common for many business owners to initially focus only on the profit and loss statement, often discussing revenue and expenses. It’s essential to recognize that all the financial statements are interconnected and influence one another. Knowing and understanding each one is imperative. For instance, the cash flow statement acts as a vital tool for monitoring the ins and outs of your business’s cash, which is the fuel for your business operations. Meanwhile, the balance sheet provides valuable insights into your business’s assets, liabilities, and overall financial health, enabling informed decisions to foster growth and expansion. Examining your business’ financial health means looks at all of the financial statements wholistically, empowering you to make sound financial decisions and drive your businesses toward success. By mastering the fundamentals of financial statements, you can effectively manage your business’s finances and achieve your goals.

Need help with financial statements for your business? Click here to sign up for free one-on-one coaching with our expert business coaches.

Embarking on the journey of entrepreneurship requires more than just a great idea—it demands a solid legal foundation to navigate the complexities of business ownership. From selecting the optimal business structure to safeguarding intellectual property and drafting watertight contracts, understanding start up law is essential for long-term success. In this article, we’ll delve into key legal considerations vital for aspiring and established entrepreneurs alike, drawing insights from industry experts.

Meet the Experts

Kristen Herwitz

Kristen is a business attorney committed to helping BIPOC, LGBTQIA+, and women entrepreneurs protect their work and themselves as their business and impact grow. She built her law practice, Herwitz Law, on paying it forward 8 years ago, reinvesting at least 10% of profits in organizations supporting women and social justice, and she now offers a DIY contract template shop in addition to her flat rate, transparent pricing for strategic legal advisor services. Kristen is a coach in AOF’s free Coaching Hub and posts legal tips on her Instagram.

Kim Meckwood

Kim is the owner and inventor of Click & Carry, a unique bag handle/carrying apparatus. She hails from a background of medical device and pharmaceutical sales and decided to make a major change after a life altering experience of being diagnosed with breast cancer. The journey through cancer gave her the faith and determination to quit her stable job and bring her product to market. Kim was originally inspired to invent Click & Carry after a breakup with a boyfriend made her realize she no longer had help bringing in the groceries. Since then, she has been featured on Shark Tank, Good Morning America, and QVC to name just a few!

Start Up Law Strategies

Understanding Business Structure

Determining the appropriate business structure lays the groundwork for your venture’s legal framework. The choice between sole proprietorship, partnership, limited liability company (LLC), or corporation profoundly impacts liability, taxes, and operational flexibility. Consulting with both legal and financial advisors is indispensable to make an informed decision tailored to your unique circumstances.

Choose the Right Structure for Your Business

• Assess the level of risk associated with your business operations, especially concerning potential injury to customers or clients.
• Take into account the nature of your business, particularly if it involves customers in physical spaces or products that interact directly with customers’ bodies, like beauty or apparel products.
• Consider regulatory requirements, especially for businesses offering services or advice in regulated fields such as health, mental health, or nutrition.
• Evaluate the financial implications, including tax considerations and the costs associated with forming and maintaining different business entities.
• Reflect on your personal risk tolerance as a business owner, recognizing that comfort levels may vary and impact the choice of legal structure.

Common Legal Structures

• Sole Proprietorship:
  • Description: A business owned and operated by a single individual. It’s the simplest and most common form of business structure.
  • Best for: Small businesses with low risk and minimal regulatory requirements, such as freelancers, consultants, or sole practitioners.
• Limited Liability Company (LLC):
  • Description: Combines the flexibility of a partnership with the limited liability protection of a corporation. Owners are called members.
  • Best for: Small to medium-sized businesses seeking liability protection without the formalities of a corporation, suitable for most industries.
• C-Corporation (C-Corp):
  • Description: An independent legal entity owned by shareholders. Offers strong liability protection but involves more complex tax and regulatory requirements.
  • Best for: High-growth businesses planning to raise capital through venture capital or public offerings, and those aiming for international expansion.
• S-Corporation (S-Corp):
  • Description: A special type of corporation that avoids double taxation by passing corporate income, losses, deductions, and credits through to shareholders for federal tax purposes.
  • Best for: Small to medium-sized businesses looking for liability protection and tax advantages, typically with a limited number of shareholders and domestic operations.

Crafting Effective Contracts

Contracts serve as the backbone of business transactions, providing clarity on rights, responsibilities, and expectations. Understand the essential elements of a contract and common mistakes to avoid is imperative when reviewing your start up law needs.

Benefit of Contracts

• Clarity and Expectations: Well-drafted contracts establish clear expectations for all parties involved, minimizing misunderstandings and disputes. Everyone should know who is doing what, how much they are getting paid for it, when they are getting paid, and who is paying them.
• Risk Mitigation: Contracts outline rights, obligations, and remedies, helping to mitigate risks and protect the interests of the business.
• Legal Protection: Strong contracts provide legal recourse in case of breaches or disagreements, offering peace of mind and a basis for resolution.
• Enhanced Professionalism: Professional contracts enhance the credibility of the business, instilling confidence in clients, partners, and stakeholders.
• Defined IP: Contracts also define who owns, can use, can modify, and can sell the intellectual property created as part of the contract.

When to Seek Help

Consulting an Attorney:

• Recommended for contracts with complex, unique, or high-stakes terms.
• Attorneys provide expertise in drafting customized contracts tailored to specific business needs.
• They ensure legal compliance, comprehensive protection, and offer insights into potential risks.
• Attorneys can negotiate favorable terms on behalf of their clients.
• Not always necessary for start up law needs.

Using a Contract Template Shop

• Suitable for routine or standardized agreements with straightforward terms.
• Offers pre-drafted templates for common contracts, such as employment agreements or non-disclosure agreements.
• Provides a cost-effective and efficient solution for businesses.
• Templates should be carefully reviewed and adapted to ensure they meet individual business requirements.

Protecting Intellectual Property (IP)

Intellectual property protections offer numerous business benefits that extend far beyond safeguarding ideas and innovations. One significant advantage is the boost in credibility it provides when interacting with retailers or seeking investment opportunities. For entrepreneurs aiming to pitch their products or attract investors, having intellectual property protections in place demonstrates a serious commitment to their product or invention. It signals to stakeholders that the business takes its innovations seriously, instilling confidence in the potential for commercial success. Additionally, established intellectual property rights can serve as valuable assets, enhancing the overall value proposition of the business and potentially opening doors to strategic partnerships and licensing opportunities.

There are many different types of IP protections in the US, including:

Atlanta, Georgia – Entrepreneurship isn’t just a career path; it’s a journey of self-discovery, resilience, and community impact. Kartisha Henry, the visionary founder behind Wing Suite, embodies this spirit of entrepreneurship through her unwavering determination and commitment to empowering her community and mentoring her team. From humble beginnings to spreading her wings with a second location, Kartisha’s story serves as an inspiration for aspiring business owners everywhere. Learn how Kartisha overcomes challenges and creates a company culture that keeps her employees in the Wing Suite family.

A Journey Rooted in the Entrepreneurial Spirit

Kartisha’s entrepreneurial journey traces back to her childhood, where she and her cousin embarked on their first business venture, a clothing line called Sassy, at the tender age of 8. This early exposure to entrepreneurship ignited a lifelong passion within Kartisha, leading her to explore various business endeavors as a serial entrepreneur. Despite the twists and turns along the way, Kartisha’s entrepreneurial spirit keeps her going in challenging times.

Originally hailing from Pensacola, Florida, Kartisha’s path eventually led her to Atlanta, Georgia, where she now owns Wing Suite, a successful fast-casual restaurant. Kartisha is a veteran, having served in the Army for over a decade, before earning a college degree and pursuing a career in logistics and supply chain management, eventually settling in the Atlanta area with her family.

The Birth of Wing Suite: Where Passion Meets Purpose

For Kartisha, Wing Suite represents the culmination of her diverse experiences and unwavering determination to make a difference. The idea for Wing Suite emerged from a blend of her entrepreneurial drive and her quest to fill a void in Atlanta’s culinary landscape. Inspired by her love for wings and the lack of quality options in the area, Kartisha embarked on a mission to create a space where exceptional food and community engagement intersected seamlessly.

 

 

With meticulous planning, hours of research, and a clear vision in mind, Kartisha brought Wing Suite to life, leveraging her expertise in purchasing and her entrepreneurial acumen to navigate the intricacies of the restaurant industry. In 2019, she opened the doors to the first Wing Suite location, marking the beginning of a new chapter in her entrepreneurial journey.

Kartisha has honed her knowledge and grown her network by participating in several programs with AOF, including the DoorDash Accelerator for Local Restaurants, the FedEx E-Commerce Learning Lab, and the Brewing the American Dream program. She’s also been a featured webinar speaker for AOF, sharing her insights on building customer loyalty.

Overcoming Challenges and Building Community

As Wing Suite began to spread its wings, Kartisha encountered her fair share of challenges, especially with the expansion to a second location in Lawrenceville, Georgia. From navigating permitting issues to overcoming gender biases in a male-dominated industry, Kartisha’s journey has been defined by resilience and determination. Through it all, she has remained steadfast in her commitment to building a supportive community both within and beyond the walls of Wing Suite.

Overcoming Gender Bias in Entrepreneurship: Insights from Kartisha

As a trailblazing entrepreneur in a traditionally male-dominated industry, Kartisha has faced her fair share of gender bias throughout her journey with Wing Suite. However, she hasn’t let these challenges deter her from pursuing her passion and breaking down barriers for minority women in entrepreneurship. Here are some invaluable insights and tips from Kartisha on overcoming gender bias in the business world:

• Confident Communication: Kartisha emphasizes the importance of assertive communication when navigating interactions with contractors, salespeople, and other industry professionals. By confidently articulating her expertise and knowledge, she challenges stereotypes and earns the respect of her peers.
• Thorough Research: Before entering any business meeting or negotiation, Kartisha conducts thorough research on the individuals she’ll be interacting with and the topic at hand. Armed with knowledge and preparation, she approaches these encounters with confidence and a clear understanding of her worth.
• Collaborating with Women-Owned Businesses: Kartisha recognizes the power of collaboration and actively seeks out partnerships with women-owned businesses and minority-owned enterprises. By supporting and uplifting fellow entrepreneurs, she cultivates a supportive network that champions diversity and inclusivity and understands the unique challenges faces by minority women in the business world.
• Projecting Confidence: Confidence is key when combating gender bias in the entrepreneurial landscape. Kartisha encourages women to project confidence in their abilities and knowledge, asserting themselves as equals in every business interaction. Kartisha emphasizes that you don’t want to be arrogant, but you don’t want to be pushed around or underestimated either. Strike a balance with kind confidence. Remember that you don’t have to know everything, and asking informed questions is encouraged.
• Building a Strong Team: Surrounding herself with a diverse and talented team has been instrumental in Kartisha’s journey. By assembling a team of individuals who share her vision and values, she creates a supportive environment where everyone’s contributions are valued and respected.

Fostering a Vibrant Company Culture at Wing Suite

Drawing upon her own experiences, Kartisha actively mentors high school students in her community, instilling in them the same entrepreneurial spirit that has guided her own path. She emphasizes the importance of continuous learning and resilience, encouraging aspiring young entrepreneurs to embrace every challenge as an opportunity for growth. This is a philosophy she brings into her restaurant, where she mentors her employees, many of whom are high school and college-aged young adults.

Empowerment and Belonging

At the heart of Wing Suite lies a deep-rooted commitment to fostering a company culture of empowerment and belonging. Kartisha’s dedication to her employees extends far beyond the confines of the workplace, as she strives to create a familial atmosphere (most of her employees affectionately call her “Ma”) where every individual feels valued and supported. Through initiatives such as summer trips, holiday gatherings, and ongoing mentorship, Kartisha ensures that her team members not only excel professionally but also thrive personally.

Building a thriving company culture is essential for fostering employee engagement, promoting teamwork, and driving business success. Kartisha Henry understands the importance of cultivating a positive and inclusive work environment at Wing Suite. Here are some key strategies she employs to nurture a vibrant company culture:

• Family-Like Atmosphere: Kartisha prioritizes creating a family-like atmosphere at Wing Suite, where employees feel valued, supported, and appreciated. By fostering strong bonds and connections among team members, she cultivates a sense of belonging and camaraderie.
• Recognition and Appreciation: Acknowledging and appreciating the hard work and dedication of her team members is a cornerstone of Kartisha’s leadership approach. She regularly expresses gratitude and recognition for their contributions, remembering that might be the only praise they get that day.
• Open Communication: Open and transparent communication is essential for fostering trust and collaboration within the workplace. Kartisha encourages an environment where employees feel comfortable sharing their ideas, concerns, and feedback openly.
• Investing in Employee Development: Kartisha prioritizes investing in the professional development and growth of her team members. At Wing Suite, employees aren’t afraid to make mistakes; they are expected to correct them and grow from the experience. It’s about learning and taking responsibility for your work. Kartisha empowers employees to reach their full potential.
• Whole-Person Approach: Recognizing that there is so much more to an employee than the work they do, Kartisha strives to create a supportive work environment at Wing Suite. She understands that happy and fulfilled employees are more productive and engaged in their roles. Kartisha’s simple, but effective method to implement this approach includes knowing her employees and pulling them aside to talk if they seem off.
• Mentorship: Kartisha also actively mentors her employees not just in their roles, but in life. She teaches them life skills they might not get elsewhere and encourages them to think about next steps after their time in food service, like college or career goals.

By implementing these strategies and fostering a vibrant company culture, Kartisha Henry has created a workplace where employees feel valued, empowered, and inspired to achieve their goals. As Wing Suite continues to thrive and expand, Kartisha remains committed to nurturing a culture of inclusivity, collaboration, and excellence.

In a particularly poignant moment, Kartisha shared stories of former employees who come by to visit when they are home from college, team members who hang out at Wing Suite on their day off because they miss the Wing Suite family. One former employee was working at another restaurant that was able to pay a higher wage, but came back to Wing Suite because of the positive company culture.

Cultivating Customer Loyalty: A Pillar of Success for Wing Suite

Another key to building community around Wing Suite is cultivating customer loyalty. In Kartisha Henry’s entrepreneurial playbook, fostering customer loyalty is not just a business strategy; it’s a fundamental principle that underpins the success of Wing Suite. Through innovative initiatives such as the Five Stars Customer Loyalty Program and the Wing Suite mobile app, Kartisha has prioritized creating an exceptional customer experience that keeps patrons coming back for more. By offering personalized incentives, timely reminders, and seamless ordering options, Wing Suite has earned a dedicated following of loyal customers who feel valued and appreciated, like they are part of the family. Kartisha’s unwavering commitment to customer satisfaction underscores her dedication to building a thriving business rooted in strong relationships and lasting connections.

Embracing the Future with Wings Spread Wide

As Kartisha looks toward the future, her entrepreneurial journey shows no signs of slowing down. With the imminent opening of Wing Suite’s second location and a steadfast commitment to community engagement, Kartisha continues to lead by example, inspiring others to chase their dreams and make a meaningful impact.

In a world where resilience, community, and empowerment reign supreme, Kartisha Henry and Wing Suite stand as shining beacons of hope, proving that with passion, perseverance, and community, anything is possible.

In the dynamic landscape of entrepreneurship, each journey is as unique as the individual embarking upon it. For women entrepreneurs, this path often comes with its own set of challenges and triumphs. Let’s delve into the insights and experiences of women who have successfully navigated business ownership, offering inspiration and motivation to fellow leaders. Discover key strategies in business management, negotiation, networking, and employee relations, all from a woman’s perspective. Learn how to navigate the unique challenges and opportunities faced by women in the business world. This is not just about empowerment but also about practical tools and techniques to elevate your business to new heights.

 

Meet the Speakers

Vivian Kaye

Vivian Kaye is the Founder & CEO of KinkyCurlyYaki, a premium textured hair extension brand for Black women that she bootstrapped into a multi-million dollar in revenue business as an immigrant, college dropout, and single mom. She’s also a self proclaimed “pretty dope lady” and we agree!

Melissa Villanueva

Melissa Villanueva is the CEO, Owner, and Founder of Brewpoint Coffee, a multi-million dollar coffee company with four coffee shops, a coffee roastery, and a premiere event space. Melissa’s innovative approach to running a successful small business has been featured on Forbes, Entrepreneur, Fast Company, and many other leading publications.

Seizing Opportunities: From Vision to Reality

Some women come to entrepreneurship on their own, but for others, entrepreneurship comes to them. Vivian Kaye has long had an entrepreneurial mindset. A trailblazer in the industry, she saw a gap in the textured hair extensions product, filled the gap, and turned it into a thriving multi-million dollar business. Meanwhile, entrepreneurship found Melissa Villanueva. She stumbled upon an unexpected opportunity: while browsing Craigslist for an espresso machine, she bought a coffee shop instead. Their stories underscore the importance of seizing opportunities and embracing the unexpected in the entrepreneurial journey.

Embracing Intersectionality: Transforming Challenges into Growth

Intersectionality shapes the experiences of women entrepreneurs, presenting both obstacles and opportunities for growth. By reframing challenges as opportunities and leveraging support networks like AOF, women can transcend barriers and harness their unique identities to drive success. Here are some tips for embracing your full identity as a woman entrepreneur:

• Turning Lemons into Lemonade: Embracing setbacks as opportunities for growth and learning, transforming challenges into stepping stones toward success.
• Utilizing Support Networks like AOF: Taking advantage of organizations like AOF to learn more about managing and growing your business. AOF offers free business coaching to small business owners. Learn more about business coaching through AOF here.
• Embracing Authenticity: Recognizing the power of authenticity and individuality in navigating the entrepreneurial landscape, women entrepreneurs can leverage their unique stories and perspectives to carve their path to success. You don’t need to be “like the guys” you just need to be yourself to reach success.
• Aligning Profitability with Values: Balancing profitability with values, women entrepreneurs can support diversity and inclusivity within their businesses and communities, fostering an environment conducive to growth and empowerment.

Networking: Nurturing Connections for Growth

Networking

serves as a catalyst for business growth, providing avenues for collaboration and expansion. Adopting a strategic approach, such as preparing concise pitches tailored to different contexts, empowers women to forge meaningful connections and unlock new opportunities in the competitive business landscape.

Melissa recommends having your one, three, and five minute business pitch ready at all times so you can take advantage of any networking opportunities that come your way.

Negotiation: Channeling Confidence and Assertiveness

What Would Chad Do™?

That’s the question Vivian Kaye asks herself when approaching business negotiations. Who is Chad, you ask? Chad is not a masterful negotiator. Chad isn’t even a real person. Chad represents the men in the world who apply for jobs whether or not they are fully qualified for them (something women are rarely willing to do). Chad is the man who is audacious enough to ask for more in any negotiation. Chad was never taught that he should be agreeable to everyone and that he doesn’t deserve more unless he more than earns it. Women entrepreneurs are encouraged to have the audacity of a man and advocate for themselves and their businesses in a confident, professional way.

Here are some tips for negotiating with confidence:

1. Know Your Worth: Recognize the value you bring to the table and approach negotiations with confidence in your abilities and contributions.
2. Prepare Thoroughly: Research the market, understand your counterpart’s needs and priorities, and anticipate potential objections or challenges in advance.
3. Set Clear Goals: Define your objectives and desired outcomes for the negotiation, ensuring they are specific, measurable, and aligned with your business objectives.
4. Practice Assertiveness: Challenge societal norms and stereotypes by asserting your needs and advocating for yourself confidently (but not rudely) during negotiations.
5. Focus on Win-Win Solutions: Strive for mutually beneficial agreements where both parties feel satisfied with the outcome, fostering long-term relationships and collaborations.
6. Use Active Listening: Listen attentively to the other party’s perspective, validate (but not necessarily agree with) their concerns, and demonstrate empathy to build rapport and trust. This might sound like, “I understand you need to make money. I need to make money too. We can find an agreement that is beneficial to both of us.”
7. Stay Calm and Composed: Maintain your composure and professionalism, even in challenging or confrontational situations, to convey confidence and control.
8. Negotiate from a Position of Strength: Highlight your strengths, expertise, and unique selling points to reinforce your negotiating position and leverage.
9. Be Flexible and Creative: Explore alternative solutions and compromises to overcome impasses and find innovative ways to meet both parties’ needs.
10. Seek Support and Mentorship: Surround yourself with a supportive network of mentors, peers, or negotiation coaches who can offer guidance, encouragement, and feedback.
11. Practice Self-Advocacy: Advocate for your interests and needs assertively, without apologizing or downplaying your contributions, to ensure your voice is heard and respected.
12. Learn from Experience: Reflect on past negotiation experiences, identify lessons learned, and continuously refine your negotiation skills to become more effective and confident over time.

Leadership: Empowering Teams with Values

Effective leadership starts with aligning business practices with personal values, fostering a culture of trust and empowerment within the organization. By relying on intuition and gut instincts, women entrepreneurs can navigate the complexities of managing employees while prioritizing values-driven decision-making. By necessity, most women have highly attuned intuitions. In business, as in life, it is important to trust your intuition.

As you grow in your business, you must also learn to transition from reactive to proactive leadership. By cultivating proactive energy and focusing on overarching Key Performance Indicators (KPIs), women entrepreneurs can steer their businesses toward new heights, driving innovation and adaptation in a dynamic marketplace. Finding time to work on your business instead of in your business is essential for long term business success.

Financial Confidence: Cultivating a Money Positive Mindset

Confidence with finances is pivotal for women entrepreneurs, empowering them to navigate financial decisions with clarity and conviction. Strategies like keeping visual reminders of financial goals, such as prop money, instill a positive money mindset and reinforce the value of your time and the achievement of your earnings.

Top Tips for Women in Business

• Balancing Priorities: Recognize the delicate balance between business and personal life, and prioritize what is non-negotiable versus flexible. Remember, when juggling many priorities, some of your balls are glass and will shatter if dropped, while others are made of rubber and will bounce back up if they hit the ground. The trick is being able to differentiate between the “glass” and “rubber” priorities.
• Overcoming Self-Doubt: Trust your instincts and embrace uncertainty, knowing that setbacks are opportunities for growth. Ask yourself, what’s the worst that can happen? Usually the answer is nothing that you can’t easily bounce back from, so go for it!
• Turning Adversity into Opportunity: Adopt a resilient mindset, viewing challenges as stepping stones for development. Vivian advises that women in business “turn sh*t into manure to help you grow.” It might not smell very good, but your flowers will be prettier for it.
• Seeking Inspiration: Channel the confidence of “Chad” to assert yourself and pursue opportunities fearlessly.
• Embracing the Journey: Embrace the diversity of experiences, acknowledging both triumphs and challenges. Not every day is going to be a rose garden. Some days you are going to be shoveling manure and digging in the dirt to help your roses grow, and some days you’ll be enjoying your roses. The journey is as important as the destination.
• Knowing When to Pivot: Trust your intuition to guide you to recognize when to persevere and when to pivot, understanding that changing course is a sign of adaptability, not failure.

Authenticity: Shining Bright in Your Own Light

Above all, authenticity is the cornerstone of success for women entrepreneurs. By embracing their unique stories, perspectives, and identities, women can shine brightly in their entrepreneurial endeavors, leveraging their distinctiveness to propel their businesses forward with passion and purpose. As Vivian says, “Shine like you,” not like anyone else.

Conclusion

In conclusion, the journey of women in business is as diverse and multifaceted as the women themselves. Through resilience, determination, and a commitment to authenticity, women entrepreneurs can overcome obstacles, seize opportunities, and carve their path to success in the ever-evolving world of business. Let’s empower each other to thrive and shine brightly as we journey toward our entrepreneurial dreams.

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Based on a survey of 660 Black small business owners (of which 70% were women) who have been in business for at least three years, as well as a focus group discussion, this research uncovered several key findings.

Key Findings 

• AOF’s research demonstrates that Black entrepreneurs remain resilient despite major setbacks during the pandemic and the lingering impacts of record high inflation. Nearly 70% of survey respondents reported breaking even or making a profit from their business. Black-owned businesses are opening at the fastest rate in 26 years, with Black women leading the way.  
• While Black entrepreneurs are creating jobs and growing their businesses, their full power as engines of our economy remains untapped because of a lack of support. Seventy-six percent said access to capital was a challenge and of those who have never received money for their business, nearly 80% said they either could not find the right support or could not afford to pay for services that would help connect them to capital. 

• Black-owned small businesses are particularly vulnerable to emergencies or economic shocks. Eighty percent of Black entrepreneurs surveyed said they had three or fewer months of cash reserves on hand. Thirty-nine percent had less than a month’s worth of cash reserves.

• AOF’s research highlights that many Black business owners are motivated not just by revenue growth, but community impact. Twenty-six percent of respondents shared community or social motivations for starting their business, including creating meaningful jobs, providing affordable services, and improving their neighborhood. In communities of color, entrepreneurship offers the opportunity to meet broader needs that go unmet due to systemic racism.  

Based on these survey findings, AOF recommends that:

1. Policymakers tap into the full potential of Black entrepreneurs by investing in community development financial institutions (CDFIs) and public-private partnerships to increase access to capital.
2. Small business service providers continue to innovate to provide low-cost products and services such as legal, tax, compliance, accounting, and bookkeeping. In addition to providing the service, there’s an opportunity to centralize and share resources with Black small business owners to access educational materials, connect with other business owners, and network for mentorship opportunities.   
3. Philanthropic supporters partner with mission-based organizations to build a robust small business support ecosystem for Black entrepreneurs. By investing in the capacity of service providers that focus on the needs of Black small business owners, we can directly address systematic gaps in capital access and support.  

Click here to download the report!

In this comprehensive webinar designed specifically for small business owners, our experienced speakers share insider tips and strategies to help you identify and reduce unnecessary

 costs, price your products and services effectively, and manage your finances for increased cash flow. Whether you’re just starting out or have been in business for years, you’ll leave this session with actionable insights and tools to help you reach your financial goals and maximize profit. Watch this webinar to take your small business to new heights!

 

Meet The Speakers

Penny Mickey

Dr. Penny Mickey is the owner and operator of the Memphis based gourmet popcorn business, Mickey’s Popcorn. Penny worked with her husband to create a business that blends the nonprofit with the for–profit world. On top of amazing flavors like Oreo and Kentucky Bourbon

 Caramel , Penny has first–hand experience with all elements of e-commerce, retail, and managing her successful small business

Viridiana Ponce

Viridiana has provided training, coaching, and consulting services in both Spanish & English, to over 1000 entrepreneurs since 2014. She supports clients in developing financial projections, managing finances, accessing capital, and strengthening their food operations. Viridiana draws on 15+ years of accounting, finance, food, and entrepreneurial experience and her mission is to empower, enrich & educate her community.

 

Maximize Profit

Topics discussed in this webinar include:

• How pricing strategy relates to maximizing profit margins
• How to identify and reduce unnecessary costs in your business
• The most important financial metrics for small business owners to monitor when they are trying to increase profit
• The best time to invest in your business to increase profit margins and maximize profit
• Common financial mistakes that small business owners make that impact profit and how can to avoid them

Want to learn more about getting a Pricing Strategy? Check out this article to discover the right pricing strategy for your business.

To sign up for free one-on-one coaching with our expert business coaches, including Viridiana Ponce, click here.

Hiring can be a tough job for your business. Whether you’re hiring full-time employees or contractors, it can be challenging to make the right decisions in the early stages of company growth. The question is: how do you prevent mistakes in the first place? In this webinar, experts share how you can pinpoint your small business staffing challenges and find creative solutions for addressing them. Hear from experienced business owners and HR experts Melissa Villanueva and Joy M. Hutton.

 

Meet The Experts

Melissa Villanueva

is the CEO, Owner, and Founder of Brewpoint Coffee, a multi-million dollar coffee company with four coffee shops, a coffee roastery, and a premiere event space. Melissa’s innovative approach to running a successful small business has been featured on Forbes, Entrepreneur, Fast Company, and many other leading publications.

Joy M. Hutton is the Founder of Joy of Consulting, a management consulting firm and on the go GLAM™, an on demand platform that delivers beauty services to men and women in the comfort of their home, office, or hotel. Joy serves on a number of small business councils and works with organizations that develop female entrepreneurs. Joy was honored by the City of Houston for her leadership in entrepreneurship. February 4, 2020 was named “Joy M. Hutton” Day. In honor of this day, she launched the LeadHERship Fund, a micro grant fund for female entrepreneurs.

 

Small Business Staffing

When you first start your business, you often do it all yourself from packing orders to marketing. But eventually, as you reach more and more of your business goals, you are going to need help and that means hiring. At nearly every stage of growth, you will probably need to increase your small business staffing. New location? New staff. New product line? New staff. Hiring new staff can help you reach your business goals, but it can also be expensive and time consuming, so how do you keep up?

Keep in mind that you don’t have to hire full time employees for every single position. Keep it simple at first.

• Consider working with independent contractors for your professional service needs like bookkeeping or social media management.
• Hiring paid interns can be a win-win for both you and the intern, who would gain valuable experience.
• Part-time employees are a great way to slowly grow your staff as your need increases.

Ask for help when you need it. Don’t wait until the situation is urgent. As much as possible, take your time and make the right hire for your business.

Who should you hire first?

Once you recognize that you need help, it can still be difficult to know where to start. Joy recommends making a D-D-D list to help you prioritize your staffing needs

• Do: Make a list of all the things you have to do.
• Dump: Mark all the things on your “Do” list that you don’t want to do, you don’t have the capacity to do, or you aren’t great at doing.
• Delegate: Based on your “Dump list” Determine what groups of tasks need help with and what kind of role(s) you delegate those tasks to.

Your D-D-D list tells you who you should hire first and helps you to prioritize hiring for roles that would have the largest impact on you and your business.

How to hire on a budget?

Joy’s number one piece of advice for hiring on a budget is to prioritize staff who will have the greatest impact on your business. Consider hiring contactors, paid interns, or part-time workers to start. Build partnerships with local schools, universities, or job-matching organizations to find subsidized internships that are partially paid by other organizations. Melissa has had great luck with university job boards and internship programs. Joy often works with cosmetology schools to find well trained employees in need of work experience for her beauty business.

Automate and standardize your hiring and onboarding systems as much as possible. Using inexpensive HR and employment tools might take time to set up in the first place, but once set up, they will save you time and money in the long run. Melissa likes Trainual and Joy recommends Gusto.

Where do you find employees?

For many employers, the biggest small business staffing challenge is where to find employees. If you have a brick and mortar location with good foot traffic, like a Melissa’s coffee shops, posting your jobs in your business can be a great way to find potential employees. For businesses with a good social media following, posting on your business accounts can be a great way to find applicants who are already interested in your business.

In addition to more traditional methods like posting on Indeed or LinkedIn, attending local job fairs or hosting your own mini job fair can get you connected with potential employees. It’s also an opportunity to network with other small businesses in your area.

When you create a positive work culture and people enjoy working at your business, applicants will see that and be interested in working for your business. Employees will refer their friends and, depending on your type of business, customers may become interested in working for you as well.

How do you retain employees?

While higher pay and employment benefits are the first things many people think of when it comes to improving employee retention, they are far from the only business practices that encourage people to stay at a company. Other ways to boost employee retention include:

• A positive, supportive, and accepting company culture. If you don’t have a good company culture, all the benefits in the world won’t fix retention challenges. Company and team culture is also essential small business success. After all, company culture is directly related to customer experience.
• Ask your employees what they want and prioritize their needs and goals as much as you can. If your employees know that you care about them, they will care about your and your business.
• Have regular face-to-face check-ins with your employees.
• Incentivize your employees and reward them for their hard work. This could be as simple as communicating your satisfaction with a job well done to giving them an afternoon off, offering them new growth opportunities within the company, or giving them a monthly gas card to help them with their commute.
• Hire good managers and be a good manager yourself.
• Invest in proper employee onboarding and training. Make sure expectations, roles, and responsibilities are well defined for both the employee and the employer.
• Communicate your business goals with your employees and let them know how meeting that goal will impact them. For example, if your business meets milestone A, then you will do B for your employees. This could include an increase in your minimum wage, a new employment benefit, or a celebration. The reward should match the amount of effort it will take to reach the milestone.

How to comply with local, state, and federal employment requirements?

• Outsourcing your HR and payroll to external companies is one of the easiest ways to stay in compliance. External companies can handle all your staffing concerns, including: onboarding, to reviewing your employee handbook, handling legal employment questions, payroll, tipping, and termination. Many companies have minimal monthly fees and will make sure you are fully compliant. The cost of being fully compliant is less than the cost of getting in trouble with the Department of Labor.
• Consult an attorney with any employment questions (BizCounsel or LegalZoom are great non-retainer options).
• Have an employee handbook that outlines agreements and expectations for both you, as the employer, and your employees.

How can small businesses ensure that they are hiring the right people for the job?

Small business staffing changes and additions can have a major impact on a business, but how do you know if you are hiring the right person? Melissa’s advice is to focus on company cultural fit. If an applicant has a connection to the business or industry, that can make them an even stronger candidate. For entry-level positions, experience is not as important as company fit. Employees can always be trained for entry-level positions.

For positions that require more experience, posting and hiring from sites like Indeed and LinkedIn can be a great way to find applicants. Melissa has had a lot of success hiring people who have experience, but need flexibility at this stage in their life, often due to child or family care responsibilities. In many cases, these employees are very committed and experienced, but simply need a flexible schedule or to work from home. If you are open to working with employees who need a flexibility, include that information (and your expectations around flexile arrangements) in your job post.

Joy recommends asking applicants what they are looking to gain from this job and how this job will help them grow. She also recommends hiring people who are smarter than you so they can help you elevate your business to the next level.

How to build a great company culture?

• Get everyone together in person at least once a year.
• Keep it professional, but take interest in your employees as people, not just workers.
• Check-in regularly.
• Hold them accountable for the rules and expectations, but with lots of care.
• Help them grow and give them what they need to be successful.
• Build a “same team” mentality. You are all on the same team, working towards the success of the business and each other.

Want to hear more from Joy? Sign up for a one-on-one coaching session with Joy as part of AOF’s coaching hub. Coaching sessions with all of our expert coaches are always free. Follow Melissa and BrewPoint Coffee on Instagram and Facebook.

External financing can be a great way to help you reach your business goals, but with so many different terms, rates, and fees, it can be difficult to compare financing options. So, how much does a line of credit cost, and how does that compare to the cost of a term loan?

Term Loan Vs Line of Credit:Typical Uses

While they are both types of debt capital, lines of credit and term loans have very different uses in small business finance. For a deep dive into the differences between term loans and lines of credit, check out our article: Term Loans and Lines of Credit: What’s the Difference?

In general, lines of credit and term loans are best used for the following small business expenses:

Line of Credit

• Inventory
• Payroll
• Seasonal working capital
• Short term costs

Term Loan

• Equipment
• Real estate
• Start-up capital
• Larger costs
• Longer time needed to repay

Term Loan and Lines of Credit Cost Comparison

Interest rates

, annual fees, principal, and credit scores can make for a confusing time when it comes to comparing term loan and line of credit cost. To help you determine the best financing option for your business, we’ve broken the costs down into a side-by-side comparison.

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What is the Prime Interest Rate?

Prime or the prime interest rate

is the prevailing interest rate that traditional banks charge to customers with excellent credit scores. The prime rate is usually the same as the interest rate set by the US Federal Reserve. If your credit score could use some improvement, you will likely be charged more than prime.

Merchant Cash Advance (MCA)

Merchant Cash Advances or MCA are another common type of business financing. When a small business owner takes out a merchant cash advance, they’re given cash up front, which they repay through a predetermined percentage of their daily debit and credit card sales. This can be a great lending option for businesses with fairly stable debit and credit card sales, but it is also a common vehicle for predatory lending practices. If you are considering a Merchant Cash Advance, make sure you read and understand the terms carefully before agreeing to the loan.

Cost vs Flexibility

All three of these popular loan options have pros and cons that you need to consider before choosing a loan for your business. The chart below helps you consider the total cost of a loan verses the flexibility of it’s repayment terms (i.e. how much and how often you will make payments).

Which is Right for Your Business?

Comparing the cost of term loans and lines of credit can feel a bit like comparing an apple and an orange. If you are considering an MCA as well, the decision can get even more confusing. The best way to decide what is right for your business is to start with what your business can afford in terms of monthly or weekly payments, what the loan will be used for, and what loan terms work best for your business’s financial situation. Once you have that list, you can start comparing it to different financing options to find the best fit for your business.

Financing with Accion Opportunity Fund

If you do decide that a term loan is right for you and your business, consider working with Accion Opportunity Fund. At Accion Opportunity Fund, our goal is not only to help you get the funding and support you need to launch your business, but to help you grow and thrive once you’ve got your foot in the door. Accion Opportunity Fund is a government-regulated, non-profit financial institution with a mission to help small business owners reach their goals. Find out more about our small business loan program and apply online today.

Disclaimer: Average interest rates and typical loan terms can change rapidly, so please thoroughly check with any provider to confirm rates and terms.

Learn More About Business Financing

When it comes to your finances, you want clear guidance and easy to implement tools based on your unique needs. Visit Accion Opportunity Fund. to get started strengthening your financial management and meeting your goals.

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