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5 Female Entrepreneurs On Their Greatest Financial Lessons

July 6, 2020

Four Female Entrepreneurs On Their Greatest Financial Lesson
Fueled with vision, curiosity, and the desire to modify businesses from inside, girls are trailblazing for generations.

Today, female-owned tiny companies constitute 36% of companies. Back in 2018, there were 12.3 million funding companies in the U.S., in comparison to only 402,000 in 1972. But though it could be easier than ever to obtain started as a female entrepreneur, launching a business in the ground-up can nevertheless feel a whole lot like the Wild Wild West, especially in regards to handling the company financing.

Millions of girls have profitably established their very own impressive businesses in sectors such as media, skincare, clothes, food, construction, and even outside, but they also be first to inform you of some of the very important financial lessons needed to be learned the hard way. However, it’s those very classes that let smart manufacturers – and intelligent professionals – to mature. We demand a number of them to discuss their encounters with Intexchange, thus we are able to learn together with them.

You must be your strongest urge

Though Christina Stembel doesn’t have a degree in business, she does have one in bootstrapping – and she’s been on a nine-year course. Since starting her company, Farmgirl Flowers in 2010, she’s learned about operations, management, human resources, company culture, and of course, finance. Of all of her lessons though, the importance of advocating for herself is the one she values most.

Stembel says her biggest misconception as a young founder was believing her business would progress in a linear fashion. While Farmgirl is a well-oiled billion-dollar company today, they’ve dealt with many ups and downs to arrive at this point. At one point Stembel’s company had technology failures, equipment that didn’t operate as intended, and like most businesses, a couple of new hires that didn’t work out. And while these were often difficult and costly mistakes, they all taught her how to speak her truth.

“If there’s something I’ve heard from those unplanned expenditures, It’s that there’s often quite a little, if everything, standing in the way of you making an error. And, paradoxically, I locate the fewer and further medially warning signals, the more expensive a possible error is,” she says.

To keep herself in the green as many as possible, she says she makes sure she does all the I’s and crosses all the T’s of company contracts. And, she does her homework on every major buy her company is about to make in the months before she pulls the trigger. As she puts it, information is power – and it gives us the ammunition we need to defend ourselves if it comes to that. “The one thing which’s likely to help save you from making a costly mistake is your self. Stay informed. Constantly ask questions. And seek assistance if necessary,” she advises.

You have to think ahead with your finances – especially taxes

Annie Tevlin, the founder of SkinOwl, was shocked one April to find herself dipping into savings when she didn’t have sufficient money available to cover Uncle Sam for her firm’s tax invoice. Even though it was frightful – and pricey – at the present time, she immediately realized she had to plan and think ahead, not just for himself, but also because of her growing skincare enterprise.

After committing exactly what she owed, Annie had an epiphany she’d allow the snowball action of entrepreneurship to divert her by the overall (but crucial ) tasks which were needed to keep her business afloat. She has a monthly consultation with her own accountant to reevaluate her threat. “I do this to obtain a handle on where the business stands, and to plan ahead by using an account dedicated to tax season,” she clarifies.

You must comprehend your financing – and also spend some time together

How diligent are you in regard to your own finances? Can you go on your credit card invoice line-by-line monthly, or can you simply scan it, and whether or not it seems “about right” you proceed? This’s the way Anne Hogarty, CEO of Extend Fertility failed it until she turned into an entrepreneur. Although she’s always made an attempt to prevent credit card debt and also donate for her 401(k), ” she wasn’t proactive with her budget.

Then, she met the love of her life, and the pair began talking marriage. As part of the process, they decided to open a joint banking account, which gave them both a look at exactly how many they were spending. “We found we had often been spending tens of thousands a month on cabs, amounting to about tens of thousands each year! While we certainly prized the couple additional minutes of sleep which taking cabs gave us realized in really summing the cost which our addiction was costing us slightly a few fine vacations each year, or substantial incremental economies,” she explains.

You can probably guess what they did next – they cut back on the rides, and completely changed their approach to their personal finances by setting their budget for the year and tracking their success. This equal mentality has helped them to grow their company, by following the mantra of “If you may ‘t measure it, you can’t enhance it. ” Now, they hold each other and their employees accountable for all decisions, including financial ones. “That transparency helps us stay motivated and focused on providing the greatest next-generation fertility treatment we could,” she says.

Over-budgeting can be a good thing

With the commitments we make, it’s usually better to under-promise and over-deliver, instead of the other way around, but what if we applied that equal philosophy to our budgets? That’s the trick of the trade for Stacy Tuschl, president of Academy WI, a performing arts school in Oak Creek, Wisconsin. Though she says her company has been lucky to grow each year after all they opened in 2005, she consistently over-budgets, just to make room for any “brand new devils” that might pop up as her company scales. “I would like ‘t jump the gun and do everything ‘yesterday,'” she states. “I realize that today’s choices can greatly affect tomorrow’s business. Slowing down to speed up and properly preparing has been a huge game-changer. ”

Always request more cash

If you aren’t familiar with the statistics, here’s one that may startle you: Few women ask for a raise, while most men do. Becca Freeman, co-creator and co-host of the Bad On Paper podcast says women should always ask for more money, and there is usually room to bargain for more. “In salary negotiations to get a new job, a raise, or possibly a freelancer contract, constantly counter the deal and request more cash,” she says, adding that her most popular podcast episodes are those that focus on navigating asking for a raise.

When Freeman before all else launched her career, she says she felt grateful for any salary offered to her, but as she grew her career, she decided to negotiate a bit and found that it actually worked. “I was amazed that this very small company managed to come on wages because we snapped,” she explained. “In the 3 years I worked with this firm, I netted over $20,000 in comp over what I had been before all else provided. And that number compounds as time passes. Negotiating your salary is 1 way we could begin to close the gender pay gap. And the strangest thing a person can say is ‘no. ‘”

We’re changing our relationships with money, one woman at a time.