Foreword by Mr. Enchumbao
The other day, an enthusiastic reader approached us asking if she could submit a guest post. We haven’t done any as of now, and to be honest, we still have to put together our guest post guidelines. There are different ways to achieve financial independence and it’s great to be able to get others’ perspectives on how to reach it. We accepted the submission and are proud to introduce our first guest post by Patricia Sanders, a finance writer. I had a chance to read some of her articles online and she offers solid advice to become financially fit. After reading the article, please go to the comments section and show her some Enchumbao love. Now, let’s lend this humble space to Ms. Sanders.
Can A Woman Achieve Financial Independence Through Entrepreneurship?
Dr. John Demartini, a human behavior specialist, educator, author and the founder of the Demartini Institute, said, “If you want to be an entrepreneur, you have to build a business that serves an ever-greater number of people”.
Entrepreneurship is the first step to get financial independence. Men have already achieved success through it and now women are also stepping into it to announce their own financial freedom. As per the survey, since last 11 years the number of organizations owned by women has risen. Women are now leaving their footprint in the business world and successfully earning million of dollars.
However, for a woman, starting and handling a business is full of challenges. They must consider strategies and some advice to master the art of entrepreneurship.
How to craft the idea for starting your own business
Before starting your own business, you must have a clear idea of it. Do a comprehensive market research of the product/service you’re thinking to provide. Having enough skills on the product is very important when you’re starting a business.
Another important point is the legal issue of starting a business, which you must take into account. You have to decide whether you start it as a partnership or a sole trade business. According to experts, sole trade business is the ideal way to start a business. You can keep the accounts strictly to yourself and you alone will be responsible for incurring business debts. However, partnership businesses have partners to share the risks, yet the profits also need to be shared. Seek legal advice to know about the financial security in detail.
How a woman can be a successful entrepreneur
Teri Nichole Harrison, an attorney, success strategist and start-up consultant said in her recent article, “don’t chase behind people. Let people chase behind you.” She explains how women entrepreneurs face challenges and get the success in their venture.
Here are some tips to create a great impact in the marketplace and announce your financial independence as a successful entrepreneur.
- Show devotion to work
Passion is very important to become a successful entrepreneur. You need to enjoy your work and put all your effort to achieve the success. Get ideas and implement them in your work. Only planting seed is not enough, you have to work hard to make it grow. Consider your work like your own child and nourish it. Thus, you’ll be able to inspire yourself as well as get the best result.Passion is very important to become a successful entrepreneur. You need to enjoy your work... Click To Tweet
- Move slowly but steadily
At first, take small steps and move forward to the success. Take small projects and start working on them. Thus, you’ll gain experience to achieve big success later. Small work allows you to do some experiment to create while creating the product. With time, take big projects.
- Educate yourself and stay updated
You must read books, journals, magazines to stay updated about the market. Thus, you can provide the best quality and make your client satisfied. Research online to brush up your skills and get more ideas.
- Build your own discipline
Discipline plays a vital role behind every success. Remember, success never comes all of a sudden. It takes time, lots of hard work, patience, and some constructive planning. So, you should follow discipline to hold the business properly.
- Seek professional help
Taking the proper decision is very important in a business. You must think twice because it can create a great impact on your business. If you’re not confident about any issue, then seek professional help. There are many business coaches who can guide you in making any plan. Try to seek help from someone who is in no way related to your business to avoid risk factor.
Financial support available for women entrepreneurs
There are some programs available that are designed for funding business of women. If money is your concern, then keep your eyes on these programs such as:
The Small Business Lending Fund
For women entrepreneurs, the Small Business Lending Fund (SBLF) is one of a most reliable platforms for getting low-interest business loans. Women can borrow loans to expand their business.
ACCION USA (small business loans)
Small business owners can get financial support and necessary advice from Accion. This is one of the best microfinance institutions that offer flexible loans to small business owners to grow their business.
The Delaware Capital Access Program
This is another low collateral business loan program to meet the financial needs of a business based in Delaware. This helps you qualify for a less risky loan than one you’d get from a traditional bank.
Only having a nice lifestyle, clothes, cars doesn’t mean that you’re financially independent. Make sure your money is working for you instead of you working for money. And having your own successful business can give you opportunities to become financially independent in your life.
So, what helps you to get financial freedom? Is that a business or job? Come and share your own story with us.
Patricia Sanders is a writer who works for wiki.debtcc.com as a freelancer. She loves to write on various topics, especially finance. Her writing helps people to get useful suggestions and financial insight to solve their problems.
Enchumbao’s Remarks on Saving for FI Via Entrepreneurship
When you become an entrepreneur, one of the biggest issues you might encounter is lack of monetary resources. It’s important that once you have initial funding to start your venture, you set yourself a salary, even if it’s a very conservative one that would not be detrimental to the start up. It should be big enough to cover your essential living expenses. You should also consult with a certified public accountant (CPA) on what are the most tax efficient ways to get paid from your business.
A major difference between getting a paycheck from a job vs. getting paid from an entrepreneurship is that with the latter, you don’t know when you’re going to get paid. This is why it’s important to be super frugal at the beginning and set aside money for the long haul. If you’re switching from a day job to entrepreneurship, you are more likely to make less than your previous salary during the first year as you reinvest a major share of the business income.
After your entrepreneurial venture starts to bring in more income and you increase your salary to a comfortable rate that covers more than your basic needs, start building other passive income streams with your savings to set yourself on the road to achieving financial independence.
The same way women like Mrs. Enchumbao or Mrs. Frugal Woods, are on the path to financial independence through a job, or have achieved it like Mrs. Money Mustache, women can also achieve it through entrepreneurship. In the long run, all money-making roads can lead to financial independence. May your FI journey begin!