Achieving Your Financial Independene
This is the time of year when I’ve got independence on my brain. Can’t help it; July Fourth and all that. And I was so inspired by the recent stories and pictures of women and young girls celebrating the first days of Sudan independence, and all of the promise that lies ahead for them.
Makes me so proud to be an American, and even prouder to be able to help American women business owners become financially independent—however you define it. As Marla Tabaka, a life and business coach outside Chicago (marlatabaka.com), puts it, “We equate financial independence with freedom, whatever that means to each of us individual,” she says. “Freedom to spend time with our families, to help others as we desire, to travel and create our own schedules and live life to the fullest in the ways that we enjoy. Being relatively debt free is also an important part of that.”
And where does that start? By paying yourself.
It sounds obvious, but you’d be amazed at how many women business owners (not to mention women, period) take care of everyone else before taking care of themselves. A 2009 survey from American Express Co’s. small-business services division, found that 30 percent of 727 small-business owners and managers were no longer taking a salary. In large part that was due to the economy, but not entirely. Business-owners tend to worry about keeping their employees happy. And while this is critical, it’s not going to do anyone any good if the boss can’t put food on her own table. Besides, it’s important to pay yourself first so you can show everyone—especially yourself!—that you value your time, effort and work ethic.
I was so pleased that, with the generous support of American Express OPEN, we could help make this happen for one of our pitch winners from M3 1000 Denver this past spring. Each winner was given a $1000 Amex gift card, and they all found creative ways to use the money. Lindsey Gregory Tyner, the founder of Alt Creative, a web development company in Austin, TX., used hers to pay herself (using her credit card payment gateway), “So I could get the money into my business bank account,” she says. “Once in my bank account, it went toward my taxes for the year. Not such a fun use for it, but perfectly timed!”
While it was great to be able to help Lindsey, it must be said that if you haven’t been able to pay yourself, it might be a sign that your business model needs a makeover, and that you might have to re-think its viability. Of course, all of this is easier said than done. But you can start by asking yourself: Do I have financial goals for my business? Do I have financial goals for myself? And what are they?
And don’t shy away from seemingly daunting tasks. “Women avoid looking at and understanding their numbers,” says Tabaka.
“But profit and loss statements are easy to read if you just understands them. It doesn’t have to be intimidating.”
These are all good issues to explore with a business coach or mentor. Need help finding one? Tap into our community by attending one of our upcoming Meetups or tuning into one of our expert webinars.
In the end, it’s all about achieving financial autonomy, and making yourself and your company that much stronger. Let’s learn to be independent, together.
