Latest news with #businessowner
Forbes
2 days ago
- Business
- Forbes
Money Boundaries That Build Wealth, Confidence And Respect
Woman making a money gesture with a conflicted expression—highlighting the emotional tension many ... More face when navigating financial boundaries. Tears streamed down my face as I looked into the eyes of my CPA. Although my therapy practice was generating over $2 million in annual revenue, low profit margins and poor financial boundaries had pushed me into a serious cash flow crisis. I was in deep financial distress and standing at the edge of closing the business I had built from the ground up. With compassion, he said, 'Joyce, you're not running a charity—you deserve to make a profit.' That moment was a turning point. My business wasn't failing; my mindset around money was. Years of people-pleasing, low self-worth and putting others first had left me emotionally, physically and financially depleted. I was a financial doormat. It was time to prioritize my worth and establish healthy money boundaries—both at work and at home. Seven years later, I sold my practice in an eight-figure exit. Financial transformation is possible, no matter where one starts. It begins by reclaiming self-worth and setting boundaries. What Are Financial Boundaries? Money boundaries are the limits individuals set with themselves and others around how they manage, share, earn and spend money. These boundaries impact every financial relationship in life. In your personal life, consider your your financial boundaries in relationships with your partner, roommate, children, parents, extended family members, service providers, and friends. Professionally, money boundaries can apply to relationships with employers, employees, vendors, clients, business partners, colleagues, advisors and more. Reflecting on these relationships, consider: If so, it's time to examine money boundaries—and discover how self-esteem is impacting them. Doormat, Diva Or Dignified? As clients make progress in therapy or coaching, their financial health often improves. That's because financial behaviors are closely linked to self-esteem, as evidenced by a study published in Journal of Economic Psychology in September 2016. With increased self-worth, people tend to pursue opportunities more confidently, expand comfort zones, advocate and negotiate for worthy compensation, say no as needed and practice healthier financial decision-making. However, most of us struggle with self-esteem at some point, making it something that requires ongoing care and attention. In my practice, I have noticed a continuum of self-esteem ranging from Doormat to Diva with Dignified (healthy self-esteem) in the middle. (Note: Diva, in this context, refers to grandiosity or entitlement—and is not gender-specific.) Example: One of my clients earns $750,000 per year but has no savings. Her sense of survivor's guilt led her to loan large sums to family—including one member who defaulted on a $1 million obligation in her name. Example: A physician couple I counseled lived far beyond their means to maintain a certain image. Their over-leveraged lifestyle created intense stress and marital conflict. After downsizing and realigning their values, their relationship and finances improved significantly. People may shift between these three money personas in the context of different relationships or environments (i.e. home versus work). It takes self-awareness and emotional intelligence to fall in the Dignified range of the spectrum, which often requires introspection and inner-work. When Financial Boundaries Become Critical In over 25 years of clinical and coaching work, I observed several highly problematic boundary patterns repeatedly, particularly among women in caregiving or high-responsibility roles. Even highly educated individuals sometimes defer all financial decisions to a partner or advisor, creating a dangerous knowledge and power gap. A UBS March 2019 survey found that 58% of women globally defer long-term financial decisions to their spouses. This includes hidden debts/assets, secret spending, rerouting money or putting debt in another's name without consent. A 2022 poll found that nearly one-third of partnered U.S. adults admit to committing financial infidelity. Financial infidelity is especially common during separation or divorce. This occurs when someone uses money to exert control over another person. It can happen between partners, employers and employees, caretakers and elders or even parents and adult children. According to this 2022 BMC Public Health study, financial abuse is more common in financially dependent relationships and extremely common in cases of domestic violence. Examples include financial gaslighting, shaming, put-downs, bullying and pressure. Financial abuse may also include withholding of resources such as access to cash, bank accounts, credit cards, financial statements, transportation or property. This involves self-sacrificing financial support for someone struggling with addiction, mental health issues or 'failure to launch.' It may involve enabling behaviors that also keep the other person from growing. Over-giving can result in personal financial harm, enabling patterns and burnout. This occurs when one person carries more than their fair share of care and financial support for dependents. A 2023 New York Life Wealth Watch survey found that nearly half of the 'sandwich generation' struggles to meet essential expenses due to caregiving responsibilities—most often women. If any of these resonate, change is possible and it is necessary. How To Build Healthy Money Boundaries Final Thought Financial wellbeing isn't just about dollars. It is about honoring oneself and others and setting money boundaries in a way that is rooted in compassion and respect.
Fast Company
2 days ago
- Business
- Fast Company
The interest rate reality: What every small business owner needs to know
As a small business owner, I've learned the hard way that interest rates are more than just numbers on a Federal Reserve press release—they're a powerful force that can make or break a business like mine. Whether you're just starting out or have been in the game for years, understanding how interest rates affect your cash flow, expansion plans, and overall stability is crucial. Let me break down what I've learned and how I've adapted my business to navigate the ups and downs of a fluctuating interest rate environment. INTEREST RATES AND ACCESS TO CAPITAL One of the first things to understand is that when interest rates rise, the cost of borrowing money goes up. That means business loans, credit lines, and even equipment financing become more expensive. When rates were low, I could borrow at favorable terms—5% or even less. That allowed me to invest in new inventory, upgrade equipment, and even expand my team without worrying too much about monthly payments. But when interest rates started climbing, everything changed. Suddenly, that same loan cost me 8% or more. The difference may not seem like much on paper, but over the life of a loan, that extra interest eats into my margins. And when you're running a small business where every dollar counts, it can be the difference between expanding or downsizing. Tip: Always read the fine print on variable-rate loans. If you're borrowing in a rising-rate environment, consider fixed-rate options to protect yourself from unexpected increases in monthly payments. CASH FLOW MANAGEMENT Interest rates also affect how much cash I have on hand. When loan payments increase, that's less money available for operations, payroll, or marketing. In tough months, I've had to make difficult decisions: Do I pay down debt or reinvest in growth? The balance is delicate. Rising rates also affect consumer behavior. When interest rates go up, people tend to spend less. Credit cards, mortgages, and car loans all become more expensive, which means customers might cut back on discretionary spending. For my retail business, that translated into lower foot traffic and smaller average purchases. Tip: Build a cash reserve when interest rates are low and credit is cheap. That way, you're not scrambling for financing when the environment becomes tighter. SUPPLIER AND VENDOR RELATIONSHIPS Higher interest rates don't just affect me—they affect everyone in my supply chain. If my vendors are paying more for their own financing, chances are those costs will get passed down to me. I've seen price hikes on raw materials, shipping, and services that I used to take for granted. And since I can't always raise prices to match, my margins have suffered. Tip: Communicate with your suppliers. Sometimes you can negotiate better terms or find ways to bundle services or inventory to reduce costs. REAL ESTATE AND EXPANSION If you're leasing commercial space or thinking about buying property for your business, interest rates play a massive role. A few years ago, I was looking at opening a second location. The math made sense when interest rates were low, but once they rose, so did monthly mortgage payments. That expansion got shelved—at least for now. For those of you renting, be aware that your landlord's rising interest expenses may eventually show up in your lease renewal as higher rent. It's a ripple effect that can sneak up on you. Tip: If you're planning to expand, lock in rates early or consider lease agreements that protect you from sudden increases. INTEREST RATES AND STRATEGIC TIMING One of the biggest lessons I've learned is that timing matters. When rates are low, it's time to think aggressively—refinance debt, invest in growth, and secure long-term financing. When rates are high, focus on efficiency, cost control, and strengthening core operations. I've also used rising interest rate periods as a time to reassess my business model. Are my offerings truly essential? Can I streamline operations? Should I cut back on non-performing segments? Tip: Use high-rate environments as a chance to become leaner and more strategic. Surviving hard times often sets you up for exponential growth when the economy rebounds. FINAL THOUGHTS Interest rates are outside of our control, but how we respond to them isn't. As a small business owner, I've learned that financial agility is key. Pay attention to economic signals, plan ahead, and don't ignore the fine print on your financing agreements. Most of all, stay informed. The more you understand how interest rates affect your business, the better decisions you'll make. It's not always easy, but with the right mindset and preparation, your business can thrive—no matter which way the rates go.
Fox News
2 days ago
- Business
- Fox News
Teen entrepreneur builds successful coffee and flower shop
Entrepreneur and 'Stemistry' owner Dylan Capshaw shares his journey from young visionary to thriving business owner and why the traditional college route was not the path he chose.
Forbes
4 days ago
- Business
- Forbes
Why Income Alone Won't Make You Rich, But Your Business Can
Why Income Alone Won't Make You Rich, But Your Business Can When you start a business, you are likely thinking of one goal, and that's to create an income. But income alone does not create wealth. You can create true wealth when you stop looking at your business as a job that brings you income and start looking at it as an asset that grows in value, generates long-term returns, and can create generational wealth for you. When you view your business as an asset, your mindset shifts. You start to think of ways your business can build wealth for you that goes beyond working to get paid. You are building an asset that provides equity, scalability, and value beyond your day-to-day involvement. The mindset shift changes how you make business decisions, from pricing and profitability to branding and leadership. And it's the key to moving from self-employed to being a business owner that builds wealth, not just income. Why Building Wealth Through a Business is Powerful Business ownership gives you leverage that a 9-to-5 job never can. As an employee your income is capped by a salary or hourly rate. As a business owner, there's no ceiling. That means that all your efforts, creativity, and strategy directly impact how much you can earn. You control your pricing, your growth strategy, and the opportunities that you create. Profits from your business can be reinvested into the business to grow the value of the business. Every dollar you put back into your business, whether through marketing, hiring, or improving operations, has the potential to multiply your returns. This business growth builds equity, and equity is where the wealth is. Because your business is an asset, one of the most powerful moves you can make to build wealth is to sell or exit your business. This can create a life-changing financial event. When you add in the tax benefits that come with business ownership like deductions and income-splitting strategies, it's clear why entrepreneurship is one of the most effective paths to building long-term wealth. Common Mistakes that Keep a Business from Becoming an Asset If you want to build wealth from your business, it's essential that you avoid these common mistakes: It's tempting to spend the cash in your business but those are profits that can be reinvested back into your business for growth. By spending profits you are holding back business growth and reducing future value. Building a true asset that can provide you a saleable business requires that you build your business so that it can run without you. This will increase the value of your business exponentially. Without a clear growth plan, solid financial management, and exit strategy, your business remains just a job rather than a wealth-building asset. The bottom line is that building wealth through your business isn't about working harder. You can create an asset that provides lasting value. When you treat your business as an asset, every decision you make will focus on profitability and add to equity. With the right strategy and mindset, your business can become not just a source of income, but a powerful wealth-building tool.
Forbes
7 days ago
- Business
- Forbes
3 Essential Questions To Ask Before Selling Your Business
What if a buyer showed up tomorrow with a serious offer to buy your business? Would you be ready or ... More would you panic? What if a business buyer showed up tomorrow with a serious offer to buy your business? Would you be ready or would you panic? Most small business owners say they'll sell 'someday.' But someday has a funny way of becoming urgent. A burnout. A life shift. A market dip. Or an unexpected email from a serious buyer. The truth is, big exits don't wait for perfection, they reward preparation. If you're a freedom-focused business owner with even a whisper of a future exit in mind, the time to get clarity is now. And it doesn't start with business brokers or complex spreadsheets. It starts by asking yourself the right questions. Below are three of the most important ones, designed to bring you out of fuzzy thinking and into powerful action. Question 1. How Much Time Do You Really Have To Prepare For Your Exit? This is the question most small business owners skip until it's too late. They assume they'll sell in a few years, maybe after they hit a revenue milestone or launch that one last project. But life doesn't wait. Burnout creeps in. Health issues show up. Or the opportunity of a lifetime knocks earlier than expected. It shapes what you can still fix, how confident you'll feel when selling your business, and the kinds of offers you'll be able to attract and negotiate. So instead of drifting toward an exit someday, anchor your thinking today: Why this matters: Many owners think they have years, but urgency often shows up fast. Buyers don't wait while you clean up your books, document systems, or finally delegate sales. The sooner you define your timeline, the more control you gain over the process. Question 2. What Is Your Business Worth Today And What Do You Want To Sell It For? Ask 10 owners what their business is worth, and you'll get 10 guesses. None backed by real data. Ask what they want to sell it for, and the answer is often a gut number tied to pride, how hard they worked or retirement goals. This is where the 'value gap' lives: the space between what you think your business is worth and what a buyer would actually pay. Here's how to bring clarity to your numbers: Why this matters: Knowing your business's value isn't just about the final price tag. It's a mirror reflecting how your business performs, how de-risked it is, and how attractive it is to outsiders. Your revenue doesn't define your value. Your systems, structure, and owner-independence do. So if your dream number feels far away, that's not a reason to quit. It's a reason to start optimizing now. Question 3. How Exit-Ready Is Your Business Right Now? Many founders focus on growth and profitability, but skip over sellability. They assume a high-revenue, well-known business will sell easily. But business buyers look for different things. They care less about your genius, and more about your systems. They want to know: can this business thrive without you? Valuable doesn't always mean sellable. That distinction is what separates an impressive business from a big exit. To assess your real exit readiness, ask: Why this matters: Buyers aren't just looking at how much money you make. They're evaluating how risky it would be to take over. The more your business runs without you, the more attractive—and valuable—it becomes. Exit readiness is a spectrum, not a yes-or-no question. Every improvement you make adds leverage, even if you're years away from selling. Final Reflection: If a Buyer Showed Up Tomorrow, Would You Be Ready? Let's imagine this scenario: You get an email from someone who wants to acquire your business. They're serious. They ask for your numbers, team structure, contracts, churn rate, and delivery process. Do you freeze, or flow? This one reflection cuts through the fluff faster than any spreadsheet: If a buyer showed up tomorrow, how ready would you truly feel to share your numbers, answer their questions, and let go? This isn't about being perfect. It's about being prepared. Because big exits don't just happen when you want them to. They happen when you've made them possible. Whether your ideal exit is two years out or ten, the time to start preparing is now. Not in a reactive scramble when you're tired or out of options, but from a place of clarity, leverage, and choice. If this article sparked something, don't let it end here. Use your answers to these questions as a roadmap. Turn insight into action, one small improvement at a time. Because you don't just deserve to sell your business, you deserve to sell it on your terms.
