Congratulations my dear fellow entrepreneur. You have done what most people just talk about! You have taken the leap and ventured on your own! It’s an exciting journey, but it’s also normal to experience self-doubt and fear along the way. While these feelings can make even the most confident entrepreneur hesitate, they can also be converted into your motivational tool guide.
Wondering how?
Here are 5 powerful tips to help you conquer self-doubt and fear, and propel your business forward:
1. Remember Your Why: What ignited your passion to start this business? Reconnect with your core purpose. Was it to solve a problem you care about? Leave a legacy? Focusing on your “why” will reignite your drive and fuel your confidence. Remember the problems you will solve and never let that purpose be out of sight
2. Focus on Progress, Not Perfection: Even the most celebrated expert was a novice once. This country is full of such novices becoming experts through sheer consistency. Every step forward, every hurdle cleared, is a victory. Focus on continuous improvement, learn from mistakes, and keep moving forward.
3. Find Your Tribe: You are known by the company you keep. Surround yourself with supportive people who believe in you and your business. This could be a mentorship program, online communities for female or minority entrepreneurs, or even a mastermind group of local business owners. Sharing your challenges and celebrating successes with like-minded individuals is a powerful way to combat self-doubt.
4. Embrace Continuous Learning: The business landscape is constantly evolving. Commit to lifelong learning – take online courses, attend workshops, and read books and articles on relevant topics. Most importantly learn from every mistake and set back. Embracing a learning mindset will help you get more confident while navigating challenges and making decisions.
5. Practice giving and gratitude: It’s important to learn to give before you can get. Focus on what you bring to the table, what problem you will solve, who will smile because of you today. Also take a few minutes each day to reflect on the things you’re grateful for in your business journey. This simple exercise can boost your mood and combat negativity.
Remember, you are not alone. Every successful entrepreneur has faced self-doubt and fear. By implementing these tips and believing in yourself, you can conquer these challenges and build a thriving business.
Pavielle Babai-Pirouz is the owner of a bustling pedicab business, High Tech Hippie, in Austin, Texas, where she oversees a fleet of pedicabs rented out to drivers. Pedicabs, essentially bicycle taxis, provide a unique and eco-friendly mode of transportation around the city. Pavielle’s journey began in 2008 when she started as a pedicab driver herself. In 2021, fueled by her years of experience and knowledge, she made the leap to start her own company. Seizing an opportunity, she acquired a pedicab business that was being sold, instantly expanding her fleet to 32 pedicabs to begin her journey.
Pavielle shares her experience as an EGBI client.
How did you hear about EGBI?
I was looking for an accountant and my accountant recommended EGBI. I needed help organizing my money flow. While I could manage it myself being a small company, I needed assistance in learning how to do it effectively.
How has EGBI helped you?
EGBI has been instrumental in various aspects. They taught me accounting, how to build a website, and even how to hire a lawyer. Moreover, they helped in connecting me with the Chamber of Commerce, which is quite similar to EGBI in terms of networking for entrepreneurs. However, the Chamber of Commerce mainly deals with established businesses rather than EGBI that works with both ideas and established business owners. I attended all the workshops they offered.
What are you working on now?
Currently, my business has outgrown its current property, so I’m looking to expand to a new location. In the pedicab industry, the drivers pay me in order to rent the pedicab. To make it more appealing for drivers to choose my company, I plan to offer better amenities at the new facility, like air conditioning, showers, and even bunk beds for naps. This new shop could also serve as a landing place for drivers coming from out of town for events in Austin.
What inspired you to become an entrepreneur?
The freedom that comes with entrepreneurship was a big inspiration for me. Being able to set my own schedule and pace was something I valued, which I experienced as a pedicab driver. Initially, I was terrified to start my own business due to fear of failure and self-doubt, especially with challenges like reading difficulties. However, technology and mentorship from the previous owner helped me overcome those hurdles.
What’s your biggest challenge?
Managing drivers is one of my biggest challenges. Many of them have diverse interests in their lives, and some aspire to be musicians or pursue artistic endeavors. Balancing their aspirations while maintaining the efficiency of the business can be a delicate task. It’s important to maintain respect and understanding, especially when dealing with individuals with artistic inclinations.
What advice do you have for aspiring entrepreneurs?
My advice would be to embrace criticism and feedback, even from those who may sound like they’re tearing you down. I learned to convert negative feedback into something positive, acknowledging problems and working to address them. Worrying about things that can change is futile; instead, focus on making those changes. And for things beyond your control, learn to accept and adapt without unnecessary worry.
Christin Ong worked for a drug store company where she learned and caught on to all of the resources she needed to and took those resources and used them with her future business/ career. Christin works at Commercial Leasing with LT Commercial Group.
Here is the interview with David Fuentes and Christin Ong.
David Fuentes: Can you tell us a little bit about yourself how you started working in the Commercial LT group?
Christin Ong: I worked at a national drugstore company. I was able to leverage my knowledge ofmanaging a high profile business and managing operations into commercial real estate with a family investing in commercial real estate.
David Fuentes: What essentials of Commercial Leasing with LT Commercial Group with Christin Ong?
Christin Ong: If you want easy access and visibility what you should consider is the cost and you’re not going to want to consider if the monthly budget fits into your monthly or rent budget but are there any other additional costs that you’re going to be responsible for.
David Fuentes: What are key elements of a commercial leasing contract and which parts are important to review over?
Christin Ong: With commercial leasing everything is very important but it’s also so long and it can be very intimidating especially if this is your first time into a contract like this so really you should look over everything.
David Fuentes: What are the differences between gross lease, a net lease, and a triple net lease and how do they impact tenants?
Christin Ong: Almost any operating expenses so you just have one flat fee every month. Nothing is variable. It doesn’t change with a triple net lease it’s a type of net so there’s three types of net leases theirs a single net double net and triple and what it looks like is based on your rental amount but you also have net charges on top of that.
How to create a budget you’ll use for your business. Sure, you can trust your gut, but your employees don’t have your gut and will need a concrete plan they can see and use.
When you hear the word, budget, what emotion comes to mind for you? Some dread it and actively avoid using it. Some think it’s restrictive and not flexible enough to match their ideas. But, a budget helps give you a north star to follow. If your business doesn’t have focus, it’ll feel like nothing is moving or things are moving in all directions and yet feel stagnant. A budget can help you focus your energy on one thing for that year. If you realize halfway through the year that the budget you built is over or below your actual results by a huge margin, then at least you have a starting point on what to change for the remaining year.
If you don’t have a baseline budget, then how can you know what needs to change and how to change it? If you feel like your business is off course, you can always go back to your budget to see what your plans were and refocus. It’s not meant to be a restrictive handcuff. You can have fun with it and get into the habit of recording and seeing the changes in your budget and business as it evolves.
Three ways you can start creating and using a budget:
Simple
Growth Rate
Detailed & Bottom-Up
Simple
The simple method of creating a budget is multiplying your monthly revenue and expenses by twelve (annualizing your monthly number). This automatically gives you your annual goal for revenue and expenses. This only works if you’re just starting out and are a one or two-person team. At least you’ll have a goal that you’re trying to reach. You will sacrifice some accuracy with this method, but it’s a starting point. Then, as your business grows, you’ll get a sense of what revenue and expenses look like to help inform next year’s budget. What ends up happening, as you grow, you’ll want a more detailed method to plan for revenue and expenses.
Growth Rate
Another way is to pick a percentage that you think your total revenue or expense will increase or decrease for the year. For this you’ll need your previous year’s total revenue and expense to multiply your rate to it. Some common sense will have to be applied when using this method. You can’t say you’ll 10x your revenue over the next year when you’ve barely been able to double your revenue. Don’t set yourself up for failure, and keep your numbers reasonable. I usually like to underestimate revenue and overestimate my expenses. You’re always going to spend more than you think so you might as well build that in your budget.
Detailed & Bottom-Up
I like using this detailed and bottom-up approach when building client budgets. It forces my clients to think through the levers that run their business. What quantities and at what price do you think you’ll be able to sell every month? If you’re a nonprofit, which donors or grants can you get your funds from? If your business is seasonal, we can build the seasonality into your budget. How many employees do you think you’ll need? Is the number of employees needed associated with your sales? If you have department heads, this approach forces you to talk to them and have them bring their input as to what the budget should look like. Since, they’re living the day-to-day and can accurately estimate what resources they’ll need for the next year. This approach takes the longest to build, but it’s comprehensive and will have every part of the business talking to each other to build a functional budget.
Not having a budget is not an option. A budget gives you a goalpost to look towards and helps keep you honest as a business owner. If your actuals don’t match your budget, at least you have a starting point to investigate the differences. Do you have to change your sales and marketing tactics? Is it an operation issue? Have you hired too many people? Do you need to hire more people? Is your fundamental product that you’re selling not what your customers want? It opens a world of ways to start analyzing and seeing your business. A budget is a plan that you can use to run your business, but don’t feel you have to stay stuck to it. It’s just a plan that can change, but whatever change you plan must make business sense. You can’t change just because you feel like it. Your employees will feel the whiplash and lack of stability.
About the author:
Anwuli Chukwurah is a versatile finance professional with a track record of starting new finance organizations and scaling them for growth in fast-paced entrepreneurial environments. She has over 6+ years of experience working with small business owners, startups, and nonprofit organizations to help connect finance with their business goals. She aims to ensure her clients become comfortable and adept at navigating their numbers. She works with clients at Woolichooks and writes a newsletter for non-finance folks.
Claudia and Fidel Castillo of Castillo Drywall LLC are not just a dynamic duo in the Texas construction industry; they are a testament to resilience, hard work, and entrepreneurial spirit. Relocating from Chicago to Texas in 2013 amid financial adversity, they found a new home and opportunities for growth in Texas.
The journey to founding Castillo Drywall LLC was paved with over 15 years of experience and a shared passion for excellence. Specializing in drywall installation, taping, and texture, their company caters to a wide range of clients across central Texas, offering unparalleled service and craftsmanship.
Claudia and Fidel share their experience as clients of EGBI.
How did you first find out about EGBI?
“I found out about EGBI through my friend Mariela Méndez, who is also an EGBI client,” Claudia shares, highlighting the community connections that led them to the support they needed.
How did EGBI help your business? What service did you benefit from?
“EGBI helped from business planning to marketing tools, legal advice, and accounting,” Claudia explains. “They continue to support us with workshops and tools for our growth.”
If you had to start over, what would you do differently?
“I would start the business without overthinking it,” Fidel reflects, underscoring the value of taking the leap with confidence and passion when one is first starting the entrepreneurial journey.
What was the biggest challenge when starting your business?
“Overcoming the fear to start was the hardest part,” adds Fidel, sharing a sentiment many entrepreneurs can relate to.
What advice would you give to someone starting their business?
For those starting their entrepreneurial journey, Claudia and Fidel suggested leveraging support networks like EGBI, which can assist you with critical business fundamentals, from legal and financial knowledge to effective marketing strategies.
Through their partnership with EGBI, Claudia and Fidel Castillo have not only navigated the complexities of entrepreneurship but have also seen significant growth and success that is only expanding. Their story is a powerful reminder of the impact of community support, education, and perseverance in the business world.
EGBI provides training, coaching, and support to aspiring and existing business owners who face barriers to growing a successful business. If you would like to support our efforts, please visit our website https://egbi.org/donate/.
For military veterans and spouses looking to embark on their small business journey, government contracting represents a promising avenue. This article serves as a guide, shedding light on the intricate process, potential challenges, and the wealth of resources available to aid veterans and spouses in securing federal and state government contracts.
Understanding the Process: Embarking on government contracting involves a series of steps, each important to the overall success of your small business. Let’s dive into several of the key areas needed to start on the road of government contracting.
Conduct Market Research: Begin by conducting extensive market research to identify government agencies, departments, and prime contractors seeking the products or services aligned with your skill set. You can begin with local government (i.e. City of Austin) as well as with the Small Business Administration’s (SBA) veteran contracting assistance programs.
Registration: Navigate the bureaucratic landscape by registering your business in the System for Award Management (SAM), the central database for vendors engaging with the federal government. Additionally, consider obtaining certifications like Service-Disabled Veteran-Owned Small Business (SDVOSB) or Veteran-Owned Small Business (VOSB) for access to set-aside contracts. Government agencies at both the federal and state levels have set-aside programs specifically designed to leverage contracting opportunities for veteran-owned businesses. These programs reserve or “set-aside” a certain percentage of contracts for businesses owned by veterans or service-disabled veterans.
Proposal Development: Crafting compelling proposals is an art. Clearly state your business’s capabilities, past performance (if any), and unique value proposition (a clear message about the value of your product or service). Tailor each proposal to meet the specific requirements of the solicitation. Work with your local Veterans Business Outreach Center (VBOC) program, which provides entrepreneurial development services such as business training, counseling, and mentorship to veteran-owned businesses.
Contract Administration: Upon being awarded a contract, meticulous attention to detail is required to ensure compliance with the contract’s terms and conditions, deliverables, reporting requirements, and performance standards. We recommend that you seek support with reviewing contracts or legal terms and conditions before committing. To receive advice, join EGBI for one of our Legal Clinic, offered twice a year EGBI to work with one of our volunteer attorneys in a one-on-one consultation session to business owners.
Challenges Faced by Veterans and Spouses: While the opportunities are abundant, veterans and spouses encounter several challenges along the way. Here are some things to keep in mind as you navigate this process:
Competitive Landscape: Government contracting is fiercely competitive, with established firms and experienced contractors vying for the same opportunities.
Complex Procurement Processes: The intricacies of government procurement processes, regulations, and compliance requirements can be overwhelming, particularly for those new to the scene.
Resource Constraints: Limited access to capital, technical expertise, and administrative support can pose significant hurdles for veterans and spouses seeking government contracts. So, we suggest that you reach out to as many resources (various agencies local and federal) as you can in an effort to garner insights in how to obtain the best opportunities for your small business.
Certification and Credentialing Requirements: Meeting certification and credentialing prerequisites, such as obtaining security clearances or industry-specific certifications, can be especially challenging for those transitioning from military service to entrepreneurship.
Resources for Veterans and Spouses: Thankfully, a multitude of resources are available to provide support and guidance. Here are some federal and local support networks available that we recommend you connect with to help you with your small business and government contracting ambitions.
Federal:
Small Business Administration (SBA): The SBA offers various programs, including the SDVOSB/VOSB certification initiative, government contracting assistance, and workshops dedicated to federal procurement.
Procurement Technical Assistance Centers (PTACs): PTACs offer free counseling, training, and resources to aid small businesses in navigating government contracting opportunities at the state and local levels.
Veteran Business Outreach Centers (VBOCs): VBOCs provide specialized services, including business counseling, training, and mentorship tailored to the unique needs of veteran-owned businesses.
Local:
SCORE Mentors: SCORE offers the expertise of volunteer mentors, many of whom are seasoned business owners, to guide and support entrepreneurs in various facets of government contracting.
Veteran Service Organizations (VSOs): Organizations such as the Veterans of Foreign Wars (VFW), American Legion, and Disabled American Veterans (DAV) offer resources, advocacy, and networking opportunities for veteran entrepreneurs.
Economic Growth Business Incubator (EGBI): is a non-profit organization which provides training, coaching, and support to aspiring and existing business owners who face barriers to growing a successful business.
In summary, while embarking on the path of government contracting may seem daunting, securing government contracts can be a rewarding journey for military veterans and spouses, offering not only financial growth but also a pathway to economic success. By comprehending the process, overcoming challenges, and tapping into the wealth of available resources, veterans and spouses can position themselves for success in the competitive world of government contracting.
It’s a lot better to prepare for them than to get a surprise tax bill.
Taxes. They’re a necessary part of doing business, and you need to make sure you’re aware and are planning for when you’ll eventually have to cough up the money you owe the government. Tax planning is an essential part of running your business, and you need to ensure you save a portion of your net income every month when the payments are due. This post is not for non-profits — except for your annual 990 filing to let the government know you’re still alive as an organization and you won’t owe the government money.
Here are the five most common paid taxes by small business owners:
Income Tax
Sales Tax
Payroll Tax (includes Unemployment Tax)
Franchise Tax
Property Tax
Income Tax
Frequency: Annual
Mandatory: Yes
This annual tax is due in March (for corporations) or April for everybody else. Work with a CPA to ensure you’re paying the right amount and you’ve taken advantage of any deductions. If you’re an LLC, your business income tax is filed with your personal income tax. Yes, just because you have a business doesn’t mean you get out of filing your own personal taxes. I’m not a tax accountant, so I always refer clients to a CPA.
Sales Tax
Frequency: Annual/Quarterly/Monthly
Mandatory: Depends on the business industry
For sales tax, I suggest you call your local sales tax office for answers. If you have no idea if you’re supposed to pay sales tax, call the local office to get a quick answer. It will save you hours scrolling through Google. This can be a cumbersome thing to figure out, depending on where you make sales. The last time I called the local office, they were very helpful and answered all my questions — no matter how stupid I thought they were. If you’re a bigger corporation, you can also work with sales tax firms or use software that tracks sales tax payments to make sure things are aligned and filed correctly.
Payroll Tax
Frequency: Quarterly/Monthly
Mandatory: Yes
If you have full-time W2 employees, you must file and pay payroll and unemployment taxes. A payroll system such as Gusto will remove the stress from these filings. Make sure you’re registered with your state’s Workforce Commission so you can connect your tax account number with your payroll system so all payments can be correctly allocated.
Franchise Tax
Frequency: Annual
Mandatory: Yes
Everyone is required to file the Franchise Tax report. The threshold for Texas is $2,470,000 in revenue, and even if you don’t have that revenue, you’re still required to file the Public Information Report or Ownership Information Report. If your company issues shares, your franchise tax report can use your share counts and amounts—this is easier, especially if you use a cap table software such as Carta.
Property Tax
Frequency: Annual
Mandatory: Depends on if you own property
If you owe any property, you’re required to pay property tax. Properties include land, buildings, and any improvements you’ve made. It also includes tangible personal property used in the “production of income,” such as furniture, inventory, machinery, supplies, etc. Due dates vary based on county, so call your local office to confirm the date.
So, if you don’t want to be hit with a tax bill that the government thinks you owe them, be proactive with your filings. There’s nothing more shock-inducing than getting a bill for $100K when you know that number couldn’t be right. Also, form a relationship with a CPA (Tax Accountant) at the beginning of your business so they can make sure you pay the right amount of taxes and show you how to achieve that as a business.
About the author:
Anwuli Chukwurah is a versatile finance professional with a track record of starting new finance organizations and scaling them for growth in fast-paced entrepreneurial environments. She has over 6+ years of experience working with small business owners, startups, and nonprofit organizations to help connect finance with their business goals. She aims to ensure her clients become comfortable and adept at navigating their numbers. She works with clients at Woolichooks and writes a newsletter for non-finance folks.
Wells Fargo and the Economic Growth Business Incubator (EGBI) hosted a listening session with 10 Austin-based small business owners to highlight their testimonials of resilience and perseverance during this year’s National Small Business Week. During the celebratory event, Wells Fargo awarded EGBI with a $30,000 grant that will enable the nonprofit to continue empowering businesses, while expanding economic development in Austin’s underserved communities. In addition, each of the 10 small businesses were surprised with $1,000 grants to help aid in the success of their respective businesses. The businesses included:
Armonia – Armonia is the cultivation of Latin heritage, celebrating the connection of home and body through nurturing goods that evoke the memories and home essentials that carry stories.
Better Foundation Fitness – BFF identifies major issues that hinder fitness milestones and teaches effective workouts that build the best version of their clients including individuals overcoming injuries.
Collected Abundance Julianna Chung is a professional organizer and owner of Collected Abundance. She serves seniors, families and individuals to declutter together at home for a stress-free, more organized life. Julianna is here for you during life transitions and disaster relief, building a caring community together!
Dulce’s Cleaning Services – This company takes pride in offering exceptional cleaning services for your home and community. From residential and commercial cleanings to construction cleanup, office maintenance, Airbnb turnovers, and events, this company provides exceptional quality service every step of the way.
Gaines Royal Transport – Gaines Royal Transport (GRT) is a non-emergency medical transportation service that provides rides to mostly seniors and people with disabilities.
Kitty Bird Photo – Photographer is a connection artist that captured warm and expressive images of business events and branding portraits for small businesses and entrepreneurs in Austin. As a collaborative and creative, she offers genuine images that elevate brands and foster community at business events.
LCR Food Services, LLC – Make every occasion a culinary masterpiece with Canapé by Marianne Renauld. LCR Food Services specializes in crafting visually stunning grazing tables and providing personalized catering experiences.
Reycast Media – Reycast Media LLC creates high quality video for broadcast distribution and engaging social media content (video & audio) for brands and businesses. With two decades of experience in the broadcast industry, Reycast Media brings your vision to life in English & Spanish.
Smiley’s Recycling & Resale – Smiley’s Junk Removal and Recycling believes that a difference can be made in the impact on landfills only by recycling, reusing, and up-cycling the items picked up from residents and businesses of Austin, TX and the surrounding area.
Kiki Roman hair designer – Full service hair services with specialty in hair color.
“EGBI has been a strong advocate and resource for the small business community in Austin,” said Christopher Rios, Wells Fargo Vice President of Community Impact and Philanthropy. “We understand that access to capital remains a key barrier for minority-owned and-led businesses. We hope that these grants will serve as an extended lifeline to help EGBI and these inspiring business owners continue to flourish and serve their mission.”
According to the U.S. Small Business Administration, small businesses play a significant role in the economic landscape of Texas, comprising 99.8% of all businesses in the state. These businesses employ 4.9 million individuals, representing 44.5% of the workforce in Texas.
The listening session allowed Wells Fargo to hear from the struggles, milestones, and successes that 10 small business owners and clients of EGBI have experienced in the last year. The small business owners who participated have demonstrated exceptional dedication and resilience in their entrepreneurial pursuits with the support of the Economic Growth Business Incubator in 2023. These entrepreneurs shared their experiences of overcoming challenges and driving growth in their businesses and communities. The business owners are a mix of the different industries that represent the true face of small business owners in our community, including a hairdresser, a cleaning company, a media production company, a photographer, a residential organizer, a transportation company, a personal trainer, a product retailer, and junk removal company. In 2023, nearly 500 individuals in the Austin area have benefited from the comprehensive coaching, training, and support provided by EGBI to aspiring and existing business owners facing barriers to success. EGBI was presented with a proclamation honoring their commitment to helping small business flourish in Austin.
“In May 2023, EGBI was named the number one business incubator in the city of Austin by the Austin Business Journal due to number of local businesses assisted,” said Larissa Davila, Executive Director of EGBI. “Our vision is to empower every small business to become profitable, sustainable, and an asset to the community, we try to reduce as many barriers as possible we can for the small business owners to be successful.”
The Balance Sheet is also known as the Statement of Financial Position (nonprofits), and this shows you the balance between how much you own (assets), how much you owe other people/companies (liabilities), and the book value of your company (equity). Like the income statement, you read it from the top and then move down the report. It tells you the ending balance of your accounts at a singular moment in time. Most business owners ignore this report and focus on the income statement, which causes you to be short-sighted with your business. If you can’t tell how much debt you have, how often you can turn your assets into cash, and any other future payments you may have, then you will always feel behind. Your balance sheet should always balance—Assets always equal liabilities plus equity.
When you’re reading your balance sheet report, you’re looking for months that break the trend you see. What’s weird? Why’s one month significantly lower or higher than the rest? Why are your total assets lower? Why are your total liabilities higher? Why is your total equity higher? You should be able to determine the answers to these questions as you review your balance sheet. All three financial statements are connected, and you shouldn’t favor one report over the other. Your net income from your profit and loss statement is connected to your balance sheet in the equity section. A monthly review of all three financial statements helps give you a complete picture of your business.
There are three main sections to a balance sheet:
Assets
Current Assets
Long-Term Assets
Liabilities
Current Liabilities
Long-Term Liabilities
Equity
Owner’s pay & investments
Investments from others
Retained Earnings
Assets
Your assets are divided into current and long-term assets. Your current assets include your bank balances, accounts receivables, and inventory. Your current assets mean that you can quickly access your cash immediately, or if you need cash within 12 months, it’s possible for you to sell more inventory and call on your customers who owe you money (accounts receivables). Long-term assets include purchases such as equipment, vehicles, and properties. These assets will take longer than 12 months to turn into cash. It’ll be harder for you to access cash for immediate needs quickly.
Liabilities
Current liabilities include your credit card balance, lines of credit, and accounts payable (vendors/contractors that you owe) — bills/debt you must pay within 12 months. Long-term liabilities include your larger loans and other long-term debt you may have. These loans usually don’t need you to pay the full balance within 12 months. Some debt is good to help you grow your business, but being over leveraged (having more liabilities than assets) will cause you to constantly be scrambling for cash to keep up with your interest and principal payments and may eventually go bankrupt. So, be careful when taking on debt, and always have a plan of how you’re going to pay your debt back while growing your business.
Equity
Equity has three main sub-sections: owner’s pay or investments, investments from others, and retained earnings. As the business owner, any dividends or transfers from the business account to your personal account will be recorded here. Unless you legally turn yourself into an employee, all the money you pay yourself as the owner is recorded on the balance sheet, which doesn’t show up as an operating expense on the income statement! Also, if you invest in the company with your personal money, it’s recorded in the equity section, as well as any other investments you receive from others. Retained earnings are the cumulative net income from starting your business. So, if you’ve lost money from the beginning, your retained earnings will be negative, and if you’ve been net positive, your retained earnings will be positive.
The balance sheet reports help you see your business as a whole, while the income statement only shows you one portion of your business. Having a positive net income means your retained earnings increase, which in turn means you have more cash in your bank. But you may have to use some of that cash to pay your liabilities. Next week, we’ll talk about how reviewing your cash flow statement will help you confidently see if you have enough cash to pay your expenses for next month.
About the author:
Anwuli Chukwurah is a versatile finance professional with a track record of starting new finance organizations and scaling them for growth in fast-paced entrepreneurial environments. She has over 6+ years of experience working with small business owners, startups, and nonprofit organizations to help connect finance with their business goals. She aims to ensure her clients become comfortable and adept at navigating their numbers. She works with clients at Woolichooks and writes a newsletter for non-finance folks.
Dalila Vazquez and her husband Israel started their business together wanting to help and change others life and cause ease to others property space. They started PuroClean Property Savers together and have been nothing but successful; they’ve been having this business for almost a decade.
David Fuentes: Tell us a little bit about yourself?
Dalila: Dalila and Israel are a married couple who started a business together in 2015 they moved from Mexico city to start their adventure. They help people who have damage to their property.
David Fuentes: What are you guys’ main goals?
Dalila: Delila and Israel’s main goal is to make people feel at home after they experience damage to their property and try to communicate as best as possible.
Since 2016 they’ve seen a variety of disasters in the central texas area and they have over a decade experience and working as a business they came from another business, which was challenging for them and they took the skills from that business and placed it with theirs.
David Fuentes: What are essential components of a business emergency preparedness plan?
Dalila: You should design a five step planning process which you can look at as a five step guide. The first step is called planning. Planning is key. You have to plan and prepare everything for an emergency. You’re going to have the time you’re going to address the emergency in the fastest way possible. and in a better way the second step is safety. You have to understand what are the hazards inside your property to understand what’s going on and you can minimize those hazards so when the event comes you can know how to approach the situation. The third one is customized. Customize your plan based off your needs and haves on your property no matter the size the fourth step is to review you need to constantly or schedule times to review and look over your property and plans the fifth step is execute the plan when the bents comes or the emergency comes if you follow the four steps before you should be good.
