How to Take A Financial Risk Responsibly to Grow Your Business
Being a business owner requires you to bet on yourself, but how can you ensure that you are taking calculated risks that will set you up for success? When it comes to financing your business, it’s important to understand your numbers. At Flourish Media, our mission is to provide resources and support for female and minority entrepreneurs. We know what it takes to build an empire from the ground up–and it’s no easy feat.
That’s why we want to share valuable advice so you don’t have to learn the hard way. While there are many grants available for growing your business, sometimes the only way forward is to leverage debt. We know that financing and interest rates often get a bad reputation, but hear us out!
When it comes to securing a line of credit or loan for your business, here are a few things to keep in mind:
Know your credit score and existing debt. Be sure to look up your credit score for free here and create an inventory of all existing debt. If your score is below 600, you may want to take some time to pay off existing debt or build up your credit.
Research interest rates. While personal loans usually carry a lower interest rate, compared to credit cards, loans can involve more requirements. The average APR for a personal loan is 9.58 percent compared to 16.30 percent, according to the Federal Reserve. But your APR will also depend on other factors such as your credit score.
Know your options. You may want to explore the various options available with your banker. Financing options can include lines of credit, Small Business Administration loans, personal loans, and real estate term loans.
Have a clear target for growth. Know exactly what you need financing for and what result you expect to achieve. Maybe you have a brick-and-mortar location that needs a cash injection to expand or want to purchase more inventory for a projected sales forecast. Most importantly, the opportunity needs to outweigh the risk of encumbering debt.
One of our trusted brand partners, Capital One, has been a vital force in not only our growth at Flourish Media but the growth of many small businesses in our community. As a partner of the annual Flourish Media Conference, Capital One has extended its commitment to helping minority-owned businesses and women overcome barriers to wealth-building. Flourish Media CEO Vivian Olodun’s own relationship with Capital One began long before she created her own marketing empire. At the age of 17, Vivian acquired her first credit card with Capital One and it was the first card she paid off, which allowed her to build credit for her future endeavors.
What we love most about Capital One are the customized financing solutions that allow entrepreneurs an opportunity to amplify their message and manage their debt responsibly. Capital One supports women in business through banking solutions but also in its commitment to community, engagement, and involvement. Capital One understands the human element that is key to a positive money mindset.
Capital One’s human design is amplified in their local bank locations that include the Capital One Cafes. These cafes serve as hubs where entrepreneurs can work, host meetings, and share ideas. The Flourish Media Conference and Capital One share a deep synergy of supporting relationship building.
Capital One’s Supplier Diversity Program, for example, awards grants to Black and Latinx business partners and suppliers and provides the tools, resources, and counsel needed to help them succeed in today’s marketplace. The Supplier Diversity Program aims to accelerate the success of small business owners to create more jobs, strengthen the local economy and move our society toward a more equitable future. This program is part of the larger Capital One’s Impact Initiative, a $200 million, five-year effort to support growth in underserved communities and advance socioeconomic mobility.
Financing is just one of many aspects we help entrepreneurs with. If you or someone you know or someone you know is looking for an environment that helps their business grow, consider joining the waitlist for Flourish Media’s Mastermind called Made for Millions.
