33. Business finance tips from the 2024 Momentum Investment Readiness Program
I recently had the chance to share some helpful tips from my own business journey with women of colour in the Momentum: Investment Readiness Program.
This program, funded by WINVC and run by the Pillar Nonprofit Network, helps entrepreneurs get ready to attract investment. It offers workshops, connections with other entrepreneurs, expert advice, and mentors.
Here are five finance tips I shared during the panel discussion and in a separate 2-hour session with the participants:
Business doesn't play favourites:
Regardless of your gender, race, or identity, more than 50% of businesses fail within the first five years. Success depends largely on having a solid business model, regardless of who you are.
Know your numbers:
Understanding your financials is crucial. How much revenue do you need to attain cash flow positive? What investments are necessary to attain that revenue target?
Not everyone needs equity:
Some businesses need equity investors, but not all. Consider if bootstrapping, applying for grants or fixed-rate loans is what you need to get to the next level.
Bridging the information gap:
There are tons of resources and supports available, especially for people of color, especially since the pandemic. Search for information online, connect with groups that can filter information, follow LinkedIn experts in this space, and set up Google alerts to stay informed.
You don't have to do it alone:
Entrepreneurship can be a lonely journey and has its ups and downs. It is important to have people around who can encourage and guide you through the journey.
These tips are useful for all entrepreneurs, no matter who they are or where they come from! They are not philosophical advice, but things I practice in my own business.
On a side note, although I'm an entrepreneur and ex-finance manager, I currently serve social impact organizations. So, if you are a nonprofit leader or Board member reading this, consider enrolling in our DIY Strategic Plan program.
It covers how to create a strategic plan and helps you prepare to execute it, including thinking through your organization’s finances. For only 10% of consulting fees, it is a great investment to help your organization stay on the right track for the next 3-5 years.
