Fundera’s Nicolas Straut was happy to answer questions about the company’s $2,500 Zach Grant program for small businesses.

But before we get there, let’s look at their process, per Fundera’s website:

How to Apply:

1. Like and follow Fundera on Facebook.

2. Record a 3 minute video responding to the question: “Why did you start your own business?”

3. Publish the video to your YouTube channel with the following title: “Fundera Zach Grant — Your Business Name.”

4. Email your video to content@fundera.com from your business email.

5. Post the video to your social networks.

Note that the deadline to apply is January 1, 2020. The winner will be announced on February 1, 2020.

Best of luck to those of you who apply.

WN: Would you give us some history on Fundera’s Zach grant program? Why was it created? 

NS: The Zach Grant is named after Zach Weprin, the cousin of Fundera CEO Jared Hecht, who inspired Jared to start Fundera to help small business owners access the right financial solution for their business when Zach had difficulty accessing traditional financing for his business, Fusian. The Zach Grant was created to offer additional funds to small businesses to help them succeed.

The competition also offers an opportunity for the public to learn more about the interesting stories of small business’s origins.

WN: Are there particular types of businesses that Fundera is looking to support, or that have a better chance of winning? 

NS: All small businesses that apply are considered equally!

WN: How important is the quality of the video entry in moving on within the competition? 

NS: Quality is one of three main judging criteria. Once we’ve determined that an entry has followed other criteria like answering the question, we will judge the video by its quality, originality, and creativity.

WN: Is quality worth 33% of the scoring – or more? 

NS: Yes, each is valued as 33% of the total.

WN: What advice would you offer applicants to help them submit the best video application possible? 

NS: I would recommend that applicants review entries from previous years by Googling or YouTube-searching “Fundera Zach Grant” and considering what unique qualities the best videos possess.

I would also recommend practicing the script for your video in advance and attempting to make your video as high quality as possible (good lighting, editing).

WN: What does “originality” mean? Are you looking for a creative approach to how the video is shot, or something else? 

NS: Originality is distinct from creativity in that the video is something different from what we’ve seen in the past. Presenting the origins of your business in a unique inventive way will score you originality points.

WN: And does “creativity” refer to the business idea or to the filming of the video? 

NS: Creativity refers to the video itself and delivery of your answer to the competition question. Any business can win the competition regardless of what they sell or offer if they abide by the competition rules and create a high-quality, inventive video.

WN: Thinking about past winners, what would you say they have in common as entrepreneurs? 

NS: I think the commonality between entrepreneurs that have won in the past is that they were able to concisely describe why they started their own business and where it’s headed in a high-quality format while abiding by the rules of the competition. To win the grant, make sure to follow the rules, answer the question comprehensively, and be inventive and professional in your delivery.

by Marcia Layton Turner

Finding capital to start or grow a business is challenging. But if you know the lingo of the financial community, you may be able to get a leg up — or at least uncover other sources of funding you weren’t aware of.

The following is WomensNet’s A to Z guide to funding, which is designed to help you find potential financing partners.

A – Amber Grant

WomensNet’s monthly $2,000 Amber grants for aspiring and current women business owners are one potential tool to launch your new business — or to fuel your company’s growth. One additional $25,000 grant is given each December to one of the year’s Amber Grant winners.

B – Bootstrapping             

Since new businesses are typically cash-strapped, smart entrepreneurs work hard to keep expenses low. Instead of splurging on things like pricey furniture and fancy technology, they’re more likely to make do with what they have. That’s bootstrapping. The payoff can be achieving profitability faster.

C – Crowdfunding

Another source of financing is crowdfunding, as in using websites like GoFundMe, IndieGoGo, and KickStarter to announce a new product or business and offer incentives to individuals willing to make an investment. Those people willing to make a purchase are your potential backers, or funding partners. In most cases, the incentive is being one of the first to receive the new product once produced. On some platforms, the money raised isn’t released unless 100% of the goal is reached; it’s returned to the backers in that case. Other platforms forward all that is raised, even if it’s not 100% of the stated goal. The platform takes a cut for managing the fundraising campaign.

D – Debt

There are two basic ways to generate funding for a company: Debt and equity. Debt is when you borrow a set amount from an individual, group, or lending institution with a promise to pay it back with interest. Equity is the sale of ownership shares in your business, which you don’t have to repay. With equity, you effectively take on partners so that you don’t have to repay what you’ve borrowed. If and when the business is sold to a new owner, merged with another business, or goes public, anyone with an ownership stake reaps the benefit according to the percentage of the company they own at that time.

E – Executive summary (of business plan)

If pursuing a loan or investor is in your future, you’ll want to have a business plan ready to share. The first section of that plan is your executive summary, which should serve as a synopsis for what’s in the rest of the plan.  Other sections of your business plan include a product or service description, management team, marketing plan, distribution plan, organizational plan, and financial plan.

F – Factoring

An expensive but effective way to fund business growth is through factoring, which is the process of selling your accounts receivables – the money your clients currently owe you – to an outside firm at a significant discount. The reason to do this is so you can get paid today rather than 30 or 60 days from now. The downside is that factoring is expensive and firms will only pay you a fraction of what you’re owed. You can get cash almost immediately if the client is a major corporation, but it will be far less than you’re owed from your clients.

G – Grants            

While free money is scarce, other sources of grants for women business owners can be found using the tactics recommended here: https://ambergrantsforwomen.com/find-grants/

H – HUBZone      

HUBZone is a Small Business Administration program that helps small companies located in “Historically Underutilized Business Zones” get preferential access to federal procurement opportunities.

Here is a list of current HUBZones: https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5

I – Investors

Investors are individuals or organizations willing to provide the capital a business needs to start up or expand its operations. Investors typically provide financing in exchange for an ownership stake in the venture – they become equity partners.

J – Joint ventures

A joint venture (JV) is a cooperative initiative consisting of two or more individuals or organizations that agree to work together for the benefit of those involved. JVs are common in the online world, when two experts agree to work together to create a new program that leverages both their strengths. Typically, the JV partners then split the profits.

K – Kickstarter   

Kickstarter.com is one crowdsourcing platform where entrepreneurs can post product or business ideas and ask for financial support from the public. Kickstarter has positioned itself as the funding platform for more creative projects.

L – Loans

When you borrow money from an individual, bank, or organization, they are your lender. The money you are being lent must be paid back according to the repayment terms you agree to, which include how much you’ll pay, when, and for how long, on top of the interest you’ll pay for access to the money. The advantage of taking out a loan is that you retain ownership of your business, rather than selling ownership to outside investors.

M – Mentor

A mentor is someone typically more experienced than you who agrees to “take you under their wing” and guide or coach you to help you build a more successful business. Within corporations, mentors can become champions for their mentees, helping to smooth a path to promotion. In the small business community, mentors can be sources of referrals, new business, potential new hires, and problem-solvers.

N – Net 30 payments

Unlike retail businesses, where customers pay on-the-spot for their purchases, most companies receive payment after delivery of their products or services. The standard for many years was 30 days, or, in accounting speak, Net 30. However, in recent years, that standard has stretched to 45 and even 60 days, providing businesses more time to pay. That’s good news if you owe vendors money and potentially difficult when you’re waiting for payment. Which is why some organizations ask if you’ll accept a discounted payment if they pay you faster, such as a 5% discount if the bill is paid within 14 days.

O – Operating expenses

Operating expenses are costs incurred that help the business continue to operate. They are not directly associated with manufacturing of the product or services, however, and include costs such as employee wages, sales commissions, travel, and employee benefits.

P – Partnership 

A partnership is a type of business where there are two or more owners, each of whom can share varying degrees of responsibility for the success or failure of the company.

Q – Quarter/quarterly report

While the IRS expects companies to report on their profits and losses on an annual basis, most corporations issue quarterly reports, which summarize the company’s performance the past three months. Most quarters end March 31^st, June 30^th, September 30^th, and December 31^st, at least for companies that operate on a calendar year basis.

R – ROI   (Return on Investment)

The relative success or failure of a particular marketing strategy is often measured in terms of ROI. That is, what did I gain for a particular investment. For example, I bought a $10,000 newspaper ad – my investment – and what did that ad yield in terms of sales results. If you spent $10,000 and landed $20,000 in sales, your ROI is 100%. But if you spent $10,000 and only sold $5,000 you have a negative ROI of 50%. But ROI is only one measure of success.

S – Small Business Administration

The Small Business Administration (SBA) is the US government agency established to provide support and resources to entrepreneurs. The organization’s services range from free counseling, through the Service Corps of Retired Executives (SCORE), loan guarantees, and counseling, through Small Business Development Centers, to other related programs.

T – Trade/barter

One way to obtain the products and services you need is to propose a barter arrangement with another business, to avoid having to pay cash up front. In most situations, bartering is done on a dollar-for-dollar basis. There are also formal trade exchanges, such as American Barter Exchange and ITEX, that allow members to perform services for one client and receive a credit they can spend with any other exchange member. Exchange members pay a fee to belong and pay a commission for each trade that occurs between members. Barter can be cost effective if your business has sudden excess production capacity or dead inventory that you haven’t been able to sell at full retail.

U – Unemployment claim (something to avoid) 

When an employee involuntarily stops working for you, meaning you fired or laid them off, they may be entitled to file for unemployment benefits through your state. The amount they receive that you are responsible for paying generally depends on how long they worked for you. The key thing to know is that even when you fire them, you may be responsible for paying their unemployment benefits. Check your state’s unemployment website to learn more.

V – Venture capitalist    

A venture capitalist (VC), sometimes jokingly referred to as a “vulture capitalist,” is an individual or firm willing to invest a sizable sum of money in your company in exchange for an ownership stake. The expectation is that your business will generate significant profits quickly, once the VC’s money is invested. After three to five years, the VC typically sells their shares at a profit and moves on to a new investment. The entrepreneur then must contend with a new owner or the risk of shut-down if the company hasn’t been making acceptable progress toward growth and profitability.

W – WBE certification

Contractors and individuals that do business with local, state, or federal government agencies have incentives created by the government to give a portion of projects to woman-owned firms, also known as women business enterprises (WBE). So that the government can be sure that a business is truly owned and operated by a woman, it created a formal verification process, called certification. State agencies have a certification process and the WBENC also offers certification.

X – Exit plan

Many entrepreneurs establish and build companies to create an income source for themselves. Some businesses are built with the primary goal of supporting the business owner; these are generally considered lifestyle businesses. Since the company’s revenue is dependent on the services of the owner, there is no real value in the business without the owner. Standalone businesses, however, that can grow and scale on their own, can often be sold or merged with other businesses. Entrepreneurs who think about what the company might be worth in a few years are contemplating an exit strategy – how they’ll remove themselves from the business and get some money out of it. In addition to selling the business, the owner could merge it, hand it down to children or grandchildren, sell of patents or real estate, or shut it down and walk away.

Y – Year-end

Most businesses operate on a calendar year basis, meaning their financial, or fiscal, year starts on January 1^st and ends on December 31^st. So the companies’ year-end is the last day of the calendar year. However, many schools end their fiscal year on June 30^th and government agencies often close out their year on July 31^st. Knowing when an organization’s fiscal year ends can help your sales planning process, since some companies will have money they need to spend before “the end of the year,” while others may need to pay for new projects “in the new year,” which may or may not be in January.

Z – Zero-based budgeting

Zero-based budgeting is a technique to track your income and expenses and match them up at the end of each month or quarter. With a zero-based budget, your revenue minus your expenses must equal zero. That doesn’t mean you should try and spend every penny you earn, only that you need to assign each dollar a category. That could include salary, raw materials investment, or savings, for example. It also doesn’t mean that you’ll ever have zero dollars in your bank account, only that you know where every dollar is.

FedEx media relations pro Gretchen Mathis was kind enough to answer a series of questions WomensNet posed regarding FedEx’s small business grant contest.

The 2019 winners were just announced (April 2019), so use these suggestions to prepare for the 2020 round.

The last paragraph of Mathis’ response offers suggestions for what you can start doing now to put yourself in a great position for next year:

Would you give us some history on the FedEx small business grant program?

At FedEx, we know that small businesses are the backbone of the global economy. We launched the FedEx Small Business Grant Contest seven years ago as a way to show our support for and commitment to helping small businesses grow. After announcing this year’s winners on April 29, 2019, we have now awarded over $778,000 to more than 70 small businesses across the United States.

Are there particular types of businesses that FedEx is looking to support, or that have a better chance of winning?

No, we’re not looking for any specific type of business – but we ARE looking for small businesses that have a demonstrated passion for what they do or sell.

How important is the quality of the initial application in moving on within the competition?

The quality of the entry is the most important thing in moving forward in the contest. Your entry profile is what the voting public uses to get to know your business and potentially vote for you. It’s also what FedEx looks at to get to know you, learn more about your business, and understand your plans for growth.

Do votes from the public determine the ultimate winner or is that only one factor among several?

Votes from the public are just one factor among several in determining our winners. This year, the 700 businesses that received the highest number of votes were considered for the Top 100 Finalists. And from those Top 100 Finalists, we chose our Winners.

How important is video quality from the finalists – or is content more important than, say, camera angle?

The video is really all about the content. We recognize that not everyone is able to produce a professional grade video and we like the authenticity of a “selfie” type video.

What advice would you offer applicants to help them submit the best grant application possible?

Advice for anyone thinking about entering the contest or any pitch competition in the future is “just do it.” You have nothing to lose and everything to gain. Focus on telling your story, connecting to your audience and being clear about how you would use the grant money. You’ll get great exposure for your business and get to practice perfecting your business’ story. 

Thinking about past winners, what would you say they have in common as entrepreneurs?

We’ve had a diverse pool of winners each year – each with their own unique story and business. The one thing they’ve all had in common, however, is their energy and passion for their business. They believe in what they’re doing and are willing to put their all into making their business succeed.

What else should grant applicants consider when completing their FedEx small business grant forms?

In order to enter the contest, we ask you to tell us all about your business, what inspired you to get into it, what makes it stand out, and how you would use the grant to grow.

In addition to that, we do spend time looking at the social media channels of the businesses who enter the contest. We enjoy seeing how these small businesses have leveraged social media to develop an authentic and positive brand voice.  We also like reading about how the entrants are involved in their local communities, whether that be through mentoring other small businesses, donating to a cause they’re passionate about, creating jobs for the community, or doing good for the environment.

by Dr. Sydney Richardson

Dr. Sydney Richardson currently serves as Dean of College and Career Readiness at Forsyth Technical Community College. After years of facilitating workshops on mentorship, teamwork, and professional development, she launched Rae of Knowledge (RoK), a company that assists businesses and organizations in achieving their goals using relational strategies. Dr. Richardson resides in Winston-Salem, North Carolina with her spouse and children

For mentoring in the 21^st century to work, mentors and mentees must embrace their roles. Mentees, especially, must know what to look for in a guide. Below are some characteristics and types of mentoring to consider when delving into a mentorship.

Five + years of experience in the field

Generally, a mentor should have no less than 5 years of experience in their field. Usually, it takes about 3 years to understand the field, and 5 years to become comfortable with one’s profession. The first year is to learn, second year is to make changes, and the third year is to perfect new ideas; therefore, by the time someone reaches the fifth year, that person already knows the rhythm of their profession, who the key players are, and how to implement change and make progress in one’s career. Also this person, more than likely, has experienced job advancement at least once. So while it’s great to have a mentor who has been in the field for 10 + years (which is becoming rare), 5 years minimum is enough to really help a mentee.

Now, notice that I stated in the field instead of with a company. That’s because the difference between the two is a personal preference. I believe that experience within the field matters more than experience within a particular company (unless there is a drastic difference between your company and others). A mentor with at least 5 years of a marketing background will have much to offer — even if that person has not been with a company for very long — because guess what?  Your interest is not in a company, but in navigating and advancing in your area, regardless of one company’s culture.

Proven time to dedicate to a mentee

The mentor that you choose will need to be someone who manages time well, as it can be shocking to people how much time mentoring actually takes. This person will not only need some preparation in the ways of mentoring, but will need to know (up front) how much time they should be prepared to devote to this relationship. This means that you [mentee] should have an idea of the time that you require. Do you require an insignificant amount of time (ex. 3 hours per month)? Or, do you require a larger amount of time? It’s not uncommon for mentees and mentors to communicate up to fifteen hours per month. Understanding what you want and the amount of time you hope to have with your mentor is critical to the success of this relationship.

Positive with the promise of moving forward

This one is a special characteristic to look for in a possible mentor. You may know someone who performs well in her career, but if this person is a constant complainer, or does not work well with others, do you really want that type of influence in your life?  Nope. A chosen mentor should be reliable. They should arrive at work on time, have good communication skills, and get along well with various people.  Disclaimer: Getting along well with others does not mean this person never says anything negative. It doesn’t mean that this person doesn’t challenge the status quo. It means that they are respectful in their actions.  This type of person knows how to use her agency and navigate through situations that brings about respect from her peers and superiors. Being able to do this means that your mentor shows promise of career progression, so you should be able to visualize this person in a higher position, representing the field to others, whether they will actually do it or not.

Respectful and respected

I mentioned that the possible mentor should be respectful, so let me delve into that a bit deeper. This person should know how to handle conflict, have challenging conversations, address issues with a superior, and even collaborate with colleagues in ways that bring about positive results. A person who can do this respectfully is someone who has spent time crafting her ability to work with others (and I don’t use the term work lightly). This is someone who does not shy away from tense situations, but knows how to confront them and achieve a level of resolution. This does not mean that a person never experiences a difficult day. But they should have some helpful ideas on how to handle challenging times.

Also, this type of person should be respected among others. This is a person who has proven to be trustworthy, so that when they speak, colleagues know that they are genuine, fair, and knowledgeable. Finding a mentor with these abilities can truly benefit you professionally.

*Notice that so far, I have not mentioned seniority. A person can have seniority, but not possess any of the characteristics mentioned above.

What type of mentoring do you want?

Now that you have a concept of what to look for in a mentor, decide the type of mentoring relationship that works best for you. Too many times, mentees take whatever format they are handed, but you actually have a choice in making this relationship successful and effective.

Traditional Mentoring

Traditional peer-to-peer mentoring follows the model one would envision. It pairs a mentor with years of experience with a mentee, and the mentor guides the mentee through a specific area (career, life, health, personal relationship, etc.). This guidance involves answering questions, meeting face-to-face, assisting with career planning, and being the mentee’s go to person. The mentor serves as a great resource of knowledge and wisdom for the mentee, and the mentee gains professional/personal development along the way. This model can often be one-sided.

Co-mentoring/Cross-Generational Mentoring

Co-mentoring is another option that pairs younger and older women together with the purpose of mentoring one another. It is not uncommon for a company to employ up to five generations at one time, and knowing how to work with various age groups is beneficial. Digital natives can provide guidance on the latest technology, social media, and ways to integrate work into other areas of life. This helps them develop their own leadership, teaching, and mentoring skills. In “The Values of Cross-Generational Mentoring”, Ken Blanchard states: “Cross-generational mentoring relationships can provide career-enhancing wisdom for young people, and protect older people from obsolescence.” As the workplace continues to develop generationally, learning from one another will become more critical to professional success.

Group Mentoring

Imagine being in a room with your mentor, surrounded by twenty other mentor/mentee pairs, all sharing stories of success, setbacks, and lessons learned. Group mentoring takes the traditional pairing of a mentoring relationship and adds opportunities for small group mentoring sessions with multiple mentors and mentees. While each mentor/mentee pairing has their own dynamic and lessons to learn, having once a month or once a week group sessions with a variety of mentors and mentees allows multiple pieces of advice to be shared and various lessons to be learned. You will likely learn that a fear you have is similar to a fear another mentee is facing. This option is especially great for networking groups, women’s organizations and businesses.

So, as you figure out what you want in a mentoring relationship, don’t forget to consider what you have to offer. Then, start asking other people for suggestions on possible mentors. A mentoring relationship is significant for professional success, so don’t wait until you’ve reached a certain stage in your career to get a mentor. Start now.

Free money for startup businesses is extremely scarce. So it’s important to invest time in putting your best foot forward in every grant application you submit, including WomensNet’s Amber Grant program.

That doesn’t mean preparing a business plan-length tome but, rather, hitting hard on why your business or product is viable and worthy of funding.

At least that’s what the advisory board of WomensNet, which awards monthly Amber Grants of $15,000 to aspiring or existing women-owned businesses, recommended when asked what the best applications contain.

Here are other suggestions they shared about applications that resulted in grant money:

1. Address questions on the application directly and fully

Our Amber Grant application has several writing prompts designed to get a complete picture of the entrepreneur and her business concept. Sure, there is probably plenty of information on the company’s website and social media profiles, but that won’t always provide a cohesive story. Put all the information needed to understand your business right in your application.

Specific questions include:

– What’s the story behind your business? This is your chance to answer the “why” and the “how” behind your business. Why is it important to you? How did you come up with the idea? What has been your experience thus far in starting it?

–What motivates you? Facts and figures about the business could go here as background, but answers to this question should also address who the entrepreneur is as a person. What’s important to you and why? What’s your connection to this business idea?

–What are the opportunities and challenges? Amber Grants are awarded in the hope of helping a business grow or expand, or meet the needs of an untapped market. It’s useful in this section to detail how large your market is and how much demand you’ve uncovered. But also be upfront about any obstacles you’ve encountered or anticipate. Don’t try and pretend there will be no challenges – that will reduce your credibility.

–Tell us what you would do with the money if awarded a grant. Break out how you’d spend the $15,000 and the annual $75,000 grant. Price out different items you would invest in, such as new equipment, Facebook ads, or materials. Whenever possible, show how resourceful you can be in making that money stretch as far as possible.

2. Do your research

Apply for a grant the same way you would apply for a job. Take a few minutes to read about past grant recipients, learn more about the organization sponsoring the grant, and adhere to the specific requirements outlined (an FAQ page is typically a good place to start).

Use winning applications from other grant programs as your model.

3. Err on the side of a lengthier application

Telling the story of how you came up with your business idea, why you think the time is now to start it, how large your market is, and what the response has been thus far should take more than 200-300 words. If that’s all you can come up with, wait to submit an application until you have more to say about your business.

That said, don’t drone on about irrelevant facts in order to make the length of your application more substantial. If you can explain your idea, who you are, and what you’ll use the money for in 800 or 1,000 words, stop there. Conversely, if you need closer to 2,000 words to make your case, use them. Beyond that length, however, it’s likely you’re going overboard with specificity or repeating yourself.

The average Amber Grant application is roughly 600 words, though the average length of Amber Grant recipients – the applications that won – over the last six months is nearly 850 words.

4. Do’s and Don’ts

Do write your application in a program like Pages or Microsoft Word so that you have a saved copy. Keeping a copy helps you recall what you reported and also provides a starting point for other applications you might write.

Do share links to your brand or company’s website whenever possible. If you don’t have one, share links to social media accounts, such as LinkedIn, or other sites where information about your story is available.

Don’t assume that the grant committee members are experts in your industry. It’s likely they’re not. So avoid jargon or buzzwords that only you will understand; you’ll likely end up confusing the individuals responsible for reading your application.

Don’t try to sound “corporate” in your application. Yes, Amber Grants are given to business owners, but that doesn’t mean you have to pepper your application with big words or business lingo. Past winners have demonstrated their business savvy without the use of corporate speak.

Don’t stress about reporting sales figures. Is the information useful if you’re comfortable sharing? Yes. Will you be at a disadvantage if you don’t include them? No. Grant readers are not Shark Tank moguls looking to buy into your business, so don’t feel you have to disclose that information.

Ultimately, whether you win a grant or not will likely come down to how well your business syncs up with what the selection committee is seeking. That is, it’s not a comment on how viable your business is or how inventive your idea, so don’t take it that way.

Many applicants find that taking the time to complete a grant application is a useful exercise, because it forces them to become clear about what they’re trying to sell, who they’re trying to sell it to, and why their solution is better than what is currently on the market. So even if you don’t win an Amber Grant this month, you’ll likely gain clarity about your business simply by applying.

by Tiffany Rachann, Founder of Imagiread

I remember it like it was yesterday. Scrolling through Facebook, looking at posts with absolutely no enthusiasm.

Life was low.

Houston had just experienced the worst hurricane in history only three months prior with a rainfall exceeding 20 inches. Thousands of families lost their homes and everything within. There was a lingering loom over the city, and I was sitting there scrolling through posts that reminded me just how fortunate I was.

I hadn’t lost my home and my belongings, but still, I was depressed beyond belief. The 2 jobs I worked to support my business, Imagiread, had stalled. The city had been on shutdown for weeks immediately following the disaster and redevelopment months later was slow.

What had become a normal scroll stopped me in my tracks when I saw that a friend posted about a grant for women business owners. I clicked the link, read the description and decided to apply. But that’s not where the story begins.

I started Imagiread back in 2011 out of a love of children’s literature. As an only child, my parents made sure that I had tons of books to enjoy. I often dreamt of uniting the Care Bears, Strawberry Shortcake, Mickey and Minnie and the gang from My Little Pony over for brunch every Sunday. I had that kind of imagination and thought it was normal. So normal that I wanted everyone to have it. Especially other children. So it just made sense that I’d grow up with that same enthusiasm for imagination, wanting every child to own and nurture it.

So in 2011 after moving to Houston just two years prior, I decided to invest part of my savings into the development of a children’s picture book I’d written while visiting my grandmother.

The book is entitled “It’s Water Time, Ma!” and it’s a S.T.E.M-based true story of my family’s water time experiences and promotes proper hydration and conservation for children. Reading it during a Lemonade Day event that a friend hosted with her daughter is how it caught the ear of the Executive Director of the Greater Houston Childcare Council. He immediately asked me to co-write a S.T.E.M-based curriculum with him for refugee students at a local middle school, and I obliged.

Little did I know that the agreement would officially make me a business owner with the responsibility of owning, operating, managing and scaling.

I spent the next few years developing curriculum, partnering with community organizations and speaking at local educational conferences about the importance of creating and maintaining a family literacy tradition. While the community was excited about Imagiread, I wasn’t making enough money to sustain the business. Back then digital marketing was a big deal, but I felt like in-person engagement was the route. Still, I was clueless about what it really takes to own and operate a successful business, but I stuck with it.

In 2014, I was asked to teach one of Imagiread’s programs during a summer program for children ages 3-5. It was a hoot, and I loved it, but parents wanted their children to sit and do worksheets and have homework, something I don’t believe in as an educator and a parent. I struggled, but did intersperse a few homework sheets here and there, and wasn’t invited back for the Fall.

At the time, my family and I were going through a significant financial crisis. It was shortly after that that I applied for a part-time position to help me maintain the business and continue to grow it. I knew I wanted to teach the programs I’d developed, and I knew families from all races, ethnicities, and socioeconomic backgrounds would benefit. The only thing standing in the way was capital. So in 2015 when I was invited to an event at the local United Way, I could have never dreamed that I would meet someone who would change the trajectory of Imagiread forever.

Her name was Claudia, and she walked right up to me and invited me to bid on a contract for after-school programs and services. I followed up and won the bid. Finally, Imagiread was taking off in a wonderful direction. I was able to reach more families with the data I’d collected from community engagement and children were being immersed into literacy development that’s culturally appropriate and authentic while supporting social-emotional learning skills.

It was awesome to show up time and time again and see results. Imagiread was finally growing in the direction I’d dreamed. I knew then that all I needed to do was leverage that growth and continue to work the two jobs I had to support it and Imagiread would be the next global literacy development system for families. And then came the hurricane.

When I applied for the Amber Grant, it was like planting a seed in winter. I did it to remind myself that my dream of access to socially responsible, culturally authentic literacy development programming for children everywhere was real and worthy. It was filling out the application that forced me to look at some of Imagiread’s proudest achievements, ones that I’d forgotten all about with time. I was so happy to click send when I did and can’t explain how it felt to receive the email saying that Imagiread was a finalist. I thought to myself then that if Imagiread made it to the finals that it was good enough but WomensNet saw fit to choose Imagiread for the December 2017 Amber Grant — and it was mindblowing.

That was when I started to feel like things were on the incline again, and while they were, struggles continued.

Since Imagiread won the first grant in December 2017, we’ve undergone tons of changes. The entire year of 2018 was dedicated to professional development. I went back to my roots in networking and partnered with the National Afterschool Alliance, the Maine Mathematics Science Alliance, Khan Academy, Arte Publico Press, Lee and Low Books and the Alliance for Healthier Generation. With new credentials in hand, Imagiread developed new S.T.E.A.M-based programming for children ages 4-12 and aligned the curriculum to the Social-Emotional Learning values as set by CASEL. Things were on the incline for Imagiread but not without more personal struggles. My home was broken into, my oldest son was hospitalized for weeks, and I’d lost my only vehicle.

I knew that I couldn’t let anything deter me from moving Imagiread along and so I grew even more determined. Every now and then I’d log onto Facebook and see where a woman reacted to my review of WomensNet. Each time it made me smile and remember that there are women everywhere forging ahead despite challenge and struggle and so I continued.

December 2018 was the month I’d find out if Imagiread qualified for the $10,000 annual Amber Grant. I’d only remembered to start encouraging my community to vote for Imagiread just three months prior because so much had happened. Just as I was about to record a video about what Imagiread had accomplished in late November, I learned that my home had black mold and I had to temporarily locate. Once my children and I got situated I recorded a video and sent it off. Again, it felt amazing to reflect on some of Imagiread’s proudest moments. Especially combined with the professional development we’d undergone.

In January I learned that Imagiread wasn’t chosen for the $10,000 grant but was chosen for a $2,000 award. I was absolutely ecstatic. Here again, I had another opportunity to be incredibly grateful for a team of women who believe in and invest in women. It’s so inspiring to know that I wasn’t alone and that Imagiread matters.

Winning not one but two grants from WomensNet has considerably changed Imagiread’s forecast. I’ve since been able to launch an exclusive web series for parents, educators and community organizers entitled Literacy Development for 21st Century Learners. The series invites viewers to become members affording them access to Imagiread’s curriculum, learning activities, exercises, and resources.

By Fall of 2019, our literacy development subscription box service will be up and running which will help us to track engagement data for our app that is currently being mapped and developed. From there we are looking forward to taking what we’ve learned about how our children learn in-home, at school and during extended learning programs and developing custom experiences for differently abled children, including those with impairments. Programming will be translated into at least four languages, and that will get us on track to building our first tech bus, think AI meets bookmobile. And that’s just the beginning.

I can’t say it enough, WomensNet is a phenomenal organization. One that has a profound impact on the development of women-owned businesses everywhere. I can’t say thank you enough.

by Dr. Andrea Johnson

Andrea is the owner of ANJ Consulting Services, where she assists clients with developing solutions to their financial problems through individual consulting, workshops, and courses.  She holds a bachelor’s and master’s degree in sociology (North Carolina A&T State University and North Carolina State University respectively), a doctoral degree in Leadership Studies from North Carolina A&T State University and has completed the coursework for the CERTIFIED FINANCIAL PLANNER™ Certification Education Program through Wake Forest University. She is also a Certified Financial Education Instructor and has written several books on entrepreneurship, credit, and college planning.

Discussing money is an uncomfortable topic for many people. But it’s important, especially if you’re a business owner.

Lacking knowledge on how to manage your personal finances can lead to missed opportunities to invest in your business and community, add additional stress to your life, and result in low credit scores.

In this article, I will share tips on how to develop a budget, survive slow months, manage debts, and protect your finances.

Developing A Budget

The first step in taking control of your finances is to know how much you’re spending each month. As a business owner you will have a personal budget as well as one for your business. Your budget includes your bills, living expenses such as food, household and personal items. The following tips will assist you in developing your budgets:

• Write down fixed expenses along with their due dates. Fixed expenses are expenses that remain the same every month (rent, car payment, student loan, etc.).
• Write down variable expenses (food, entertainment, etc.). Variable expenses are expenses that may change from month to month. In order to get an accurate number, I recommend saving your receipts each month or recording totals in your phone/computer. At the end of the month, add your receipts to see what you spent for each category. When it’s time to add up the receipts at the end of the month, they’re already organized.
• Add your fixed expenses and variable expenses together at the end of the month and record what you have spent.
• Identify categories where you overspent and decide how much you will reduce those expenses.
• It’s important to be realistic when developing your budget. If you create an unrealistic budget, you are less likely to stick with it.

In addition to creating separate budgets for your personal and business expenses, you must also keep separate bank accounts for these expenses.

Surviving Slow Months

Creating a budget will allow you to plan for those months when business is slower. Many business owners make the mistake of not setting aside money during busy months when revenues are at their highest. As a business owner, I have personally experienced fluctuating income and it can be extremely frustrating.  However, following a budget, having an open line of credit, and managing credit cards properly has helped me to survive the slow months.

An open line of credit, also referred to as a revolving line of credit (not to be confused with credit cards, which are also forms of revolving credit), is a loan that can be used repeatedly. You can use the cash from the loan to pay personal and business expenses during slow seasons. To learn more about requirements for opening personal and business lines of credit, contact local banks and credit unions. Even if you don’t need lines of credit right now, you should still inquire. The best time to apply for credit is when you don’t need it.

In addition to implementing a budget and using lines of credit, it’s also important to develop a marketing plan. For several years I have been working with a business coach who specializes in marketing. This has been extremely helpful and has also resulted in increased revenues, even in months that are usually slower. If you do not have the financial resources to hire someone to assist you with marketing, contact your local small business center to learn about free counseling services and workshops.

Managing Debt

Managing debt can be overwhelming at times, especially if you are running a business. If you are having challenges with managing your debt, I have provided tips below to assist you.

• Pay all bills on time, even if you can only pay the minimum payment on credit cards. Paying the minimum amount should only be temporary. When your revenue increases you can increase the amount of your payment.
• Ask your credit card company to lower you interest rate. Also take advantage of balance transfers to credit cards with lower interest rates.
• Keep credit cards open even if they are near their limit. Closing them will erase all positive payment history for that account and will drastically decrease your credit scores. Although your credit scores decrease when you use more than 30% of your available credit limit, this drop is only temporary. Once you begin paying down your balances, you will see an increase in your scores. However, late payments will remain on your credit reports for years.
• If you have a budget in place and follow it, you will find that your credit resources last much longer. Your credit should be viewed as a resource when your cash flow is low and treated as such.

Reviewing Your Credit Report

In addition to budgeting and properly managing your debt, it’s important to review your credit reports. You can visit www.annualcreditreport.com to review your credit reports for free. You are entitled to one free credit report from each of the three bureaus (Equifax, Transunion and Experian) every 12 months. Review your credit report from each of the three bureaus because not all companies report to all three. You could have errors on one report that do not show up on the others.

If you use Credit Karma (www.creditkarma.com) — which provides you with credit reports and scores from Equifax and Transunion — you should also visit Experian (www.experian.com) to obtain your free Experian report.

Protecting Your Finances

An overlooked aspect of managing personal finances is developing and implementing a plan to protect them.

As you continue developing your personal and business budgets, you should also include insurance (business, life, and disability), retirement, and estate planning into your financial plan. Even if you do not have the money to pay for these items, they should still be included in your budget. Begin speaking with professionals to learn more about the fees associated with these services. Once you have this information, review your budget to see where you may be able to reduce expenses in order to pay for these services.

If you have reduced your expenses as much as you can, review your marketing to plan to explore ways to generate additional revenue.

Next Steps

You may get discouraged and feel like giving up. But the solution is to take small steps each day towards reaching your financial goals. Once you do this, you will begin to feel a great sense of confidence.

Remember, managing your personal finances is not a destination — it’s a long-term process.