Stellar Solopreneurs: How Aby’s Upholstery Does Money

Custom upholstery adds amazing pop and custom flair to any space. This special skill is a great way to add to a space or refresh a furniture piece, and with the right money management techniques, it can also produce a thriving business.

That’s just what founder and CEO Abigail Figueroa-Vera has done through Aby’s Upholstery, the custom upholstery shop in San Jose she founded in 2003. The business provides beautiful custom upholstery services for residential and commercial spaces in the Bay Area of Northern California. Along with excellent craftsmanship, her business has also financially sustained itself for 20 years. She has some great tips to share on her own business money system, and how other small business owners can adopt her successful habits.

What are some financial habits you use in your business that help you stay calm and confident about money?

When business is great, aside from saving, I have worked to maximize my credit to gain access to capital. This way when times are slow we have the necessary cushion to help us ride out the waves. When you are paralyzed in financial fear it really deters you from focusing on what you can control today.

How do you make decisions on what to spend on for your business, and what are some things that help you do that?

We spend on what is needed to facilitate our jobs. If a tool or device allows us to be more efficient we don’t think twice about the purchase.

How do you prepare for taxes in your business?

I think one of the key elements is having the right people on your financial team. Working with a bookkeeper is what has ultimately helped the company stay up to date monthly. Doing so facilitates my CPA in helping me better prepare for tax payments, etc.

 

Are there any tips for financial record-keeping you want to share with other small business owners?

Every business expense is on a company card or corporate account so that we can track every transaction.

What are some financial goals in your personal life that your business income has helped you reach, and how do you make sure that’s happening?

Here are a few: children having a private education, financing club athletics for my kids, driving safe vehicles, purchasing a building for the company and purchasing a home.

My next personal goals are to scale my company in such a way to make these dreams possible for my staff. I also want to own a company that can function without me being at the center of it all in order to create a solid infrastructure. Setting new goals for your company will always assure that your personal goals are met!

What’s something you wish you’d known about the financial side of running your own business when you got started?

The importance of knowing how to create your financial team – the investment is worth its weight in gold and even twenty years later I am still learning – each chapter will lead you into the next!

Want to connect with Aby’s Upholstery? Check out the website to see her menu of services, from pillows and cushions to full custom projects,  and join her mailing list. You can also take a visual tour of La Casita, her showroom, and connect with her on Instagram to see more beautiful images of her work.

If you enjoyed Aby’s thoughts on business finance, you might also like to check out our free resource, Reach Your Life Goals: A Business Owner’s Guide. Click here or below to get your free download.

By |2023-09-27T13:46:49-07:00September 20th, 2023|Categories: Bookkeeping Business, Small Business, solopreneurs, Taxes|Tags: , , , , , , , , , , , , |0 Comments
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Your Ultimate Small-Business Spending Decision Tree

As a small business owner, you have to make a lot of decisions. Most of them are pretty important. Your spending decisions are no different. Especially when you’re getting started or working with a small budget, it’s important to view your business spending decisions as investments. These investments influence the value you offer your customers, and the overall success of your business.

One of the biggest worries I frequently hear from the small business owners I work with is about their spending decisions. Whether they’re concerned they overspending on the wrong things, oversaving and not investing enough, or spending at the wrong time, it all boils down to concerns over spending.

To help diffuse these worries, I’ve created this decision tree to help you make business spending decisions. Turn to it when you need some guidance or are faced with an important decision. Even if this guide doesn’t walk you through everything you may want to consider when making a spending decision, it’s a good resource to get you started!

Keep Your Expenses Low

Let’s start off this guide with a note about where this perspective is coming from. From all my experiences working with solopreneurs and small business owners, I personally can say I believe it’s almost always advantageous to keep overall business expenses low whenever possible. The lower you keep your business expenses, the closer you get to creating a supportive and financially sustainable business. 

Speaking of sustainability I also believe that incremental change is better than radical change and incurring a bunch of expenses all at once. Even if a certain expense doesn’t make sense for you right now, you can always make a new decision or scale up in the future.

What needs have I identified in my business that will be satisfied by this investment? Is this solution the best fit for my business?

Ask yourself: Is there another product/service/offering that is lower cost that could still satisfy my business needs? If you’re not sure, consider doing a bit more research before proceeding. 

Have I had any experience with this solution, direct or indirect? Was it satisfactory?

For example, perhaps you’re wanting to invest in some scheduling software. Maybe you’ve had an opportunity to try a free trial or have spoken to a colleague who uses the same software. Consider what you know from this experience and whether the software would be best for your needs. If the answer is yes, move forward.

Remember not to be a perfectionist here, though! You can always change your mind and make a different decision later, and there’s no harm in trying something out. The goal of these questions is help you make balanced decisions.

Can I afford this expense?

If you’re not sure, take a quick look at your cash on hand. (This is something you can do regularly in a weekly money check-in to stay on top of your business finances.) Refer to your business spending plan for the month and any plans you have for business savings you might have.

Taking all of this into account, can you afford to make this investment right now? And if not, how are you planning to finance it? How quickly will you be able to pay that financing off? Make sure you are comfortable with these spending arrangements and that they make sense for your business before proceeding.

Do I have a reasonable expectation of seeing a return on my investment either financially or in my own personal growth or capacity?

These questions are last, but definitely not least! It’s important to essentially ask yourself with any business expense you’re considering, “Will this help me make more money?”. If the answer is no, this is a good place to stop and reconsider. If your goal is to run a profitable business, then financial concerns need to be considered as a top priority.

If you’re not sure, think about how this expense will affect your work life. If, for example, it’s an investment that will save you time and allow you to do more of the income-generating tasks related to your business, then this could be a great investment. Consider how much time it will save you and try to quantify that when thinking about what your return on this investment will be.

To consider the second part of the question, refer back to your values. Ask yourself, will this investment bring more of what I value into my work and life? It can be difficult to quantify how much money something like this might be worth to you, which is why it’s important to consider your answer to this question alongside your answers to all the others in this guide.

Special Note About Impostor Syndrome and Spending on Education/Training

Especially when it comes to spending on things like trainings and certifications, many small business owners, and particularly women, sell themselves short when it comes to their own expertise and feel like they “need” more training. This same phenomenon can also apply to branding. Some business owners can spend themselves into a hole trying to make sure their business branding looks professional.

This spending behavior often stems from an emotional root of not feeling good enough, commonly referred to as impostor syndrome. If this is something you know you struggle with, I encourage you to refer to a couple more resources along with this guide when making spending decisions. Here’s a great decision tree shared by business consultant Shaneh F. Woods, and my article “Don’t Let Impostor Syndrome Fuel Overspending in Your Business.”

Both of these will get you started off in a right direction. Perhaps you’ll find that you can make your own decision tree to encourage yourself to make balanced spending decisions!

If you enjoyed this article, then I bet you’ll love my free E-Book, “Reach Your Life Goals: A Business Owner’s Guide.” Click here or below to download your free copy.

By |2023-09-07T11:44:06-07:00September 7th, 2023|Categories: Cash Flow, Financial Clarity, Money Mindset, Small Business, solopreneurs|Tags: , , , , , |0 Comments
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Three Tips for Successfully Hiring Your First Employee

Part of scaling up your business is getting the help you need, when you need it. For many businesses, there comes a point when the tasks that need to be done outstrip your capacity, but your time and expertise are incredibly valuable. This could be the perfect time to hire an employee or contractor. Here are my top three tips for getting it done:

Know What You Need

First off, when considering hiring or getting a skilled outside contractor to help you with tasks (ie a VA, a copywriter, a bookkeeper, etc.), it’s important to have a clear idea of what help you need from them. Take some time to identify what you want to take off your plate.

There are probably tasks in your business that are not your area of expertise. These tasks take you longer to complete than they would for someone with a higher skill level. These types of tasks are great to hand over to a contractor or an employee with a specific skill set.

There may also be tasks in your business that you are able to do well, and don’t mind doing, but they aren’t directly linked to the value you provide through your business. Tasks like these are also great to pass on to an employee, perhaps even someone who has similar skills to you and is interested in learning more.

Do the Math

Before striking out on your quest for an employee, it’s important to do the math and make sure you can afford the help. Ask yourself:

  • How much time will it save me to hire?
  • What else could I be doing with that time and how will this benefit my business?
  • How much will it cost me?

Hiring someone to help you in your business is an investment, so think about what you’ll gain. Then, weigh that against the cost. If it seems like hiring will ultimately be profitable and beneficial, do it!

Get Help if Needed

Does writing a job description scare you? Are you feeling too overwhelmed with the prospect to the put the time into hiring? It’s ok if you are – there is help. From business resource centers to getting advice from industry colleagues who have hired employees themselves, to finding a firm to help you, there are many different options here. Personally, I’ve enjoyed working with Ashley of Sprout HR, who helped me get clear and also be legally compliant throughout the hiring process. I also worked with my digital content assistant to put together a job announcement, description, and application form.

Another option in this department is considering partnering with other business owners. Sometimes when you need help with your workload, there’s somebody who might be willing to take on some of your clients. The terms of this relationship can be negotiated between you. As long as you have a good working relationship and hear good things about their working reputation, this can be a great way to get help with tasks!

If you enjoyed this post, you’ll probably dig my newsletter. Get the blog posts and a monthly tailored message chock-full of tips and insights delivered straight to your inbox! Click here or below to join us.

By |2023-08-29T15:19:00-07:00August 29th, 2023|Categories: Money Mindset, Small Business, solopreneurs|Tags: , , , , , , |0 Comments
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How Oversaving and Underearning Can Affect Your Business

Have you ever considered how your personal money behaviors affect your business? Oversaving and underearning can have drastic effects on your personal finances, but they can also affect your business. 

If you are a solopreneur or small business owner, it’s important to consider the ways these behaviors might transfer into how you interact with your business finances. Let’s take a look at some possible ways your business can be affected, and what you can do about it:

Restriction 

Underearning and oversaving can deeply limit your business from growing. Both can limit the amount of cash on hand to work with, which on its own can have challenging effects on a business. 

With both underearning and oversaving there is often a deep sense of financial anxiety. This anxiety can bring an edge of fear into the way you handle your business. This fear can be deeply restricting, and limit what you feel comfortable doing in your business, while also taking a toll on your mental health. If you identify with this, I encourage you to read my piece on reducing money stress in your business and my article on working with affirmations to influence your mindset. 

Missed Opportunities 

The restriction and anxiety that come along with underearning and oversaving can cause you to miss key opportunities in your business. Web designer and business mentor Yarrow Magdalena often talks about how perfectionism could be costing you money, and my observation is that the same anxiety underlying perfectionism often dovetails with anxious financial patterns. When we block ourselves from trying something new, taking a chance, or accepting a new project in our business, we can miss valuable opportunities to grow and find success. 

One key to overcoming these behaviors can be to think about the opportunities that spending can help you open up to. In my interview with digital marketing consultant Tracey Lee Davis of ZingPop Social Media, she shared that the way she makes spending decisions in her business is by considering the question “Will this investment ultimately save me time in the long run or make my life easier in some way?” She reported that making changes in her business by hiring a bookkeeper, VA, and CPA have all made a huge difference in her business because they’ve freed her up to do client work. This type of investment also gives business owners time to work on their businesses, not just in them. This can create space for strategic decision making and more opportunities for growth, change, and fulfillment in your work life. 

Embrace the Flow

I’d like to share my own personal experiences with oversaving and underearning. My childhood consisted of a fair amount of financial instability, so anxiety around money became something that felt natural to carry around. I would often feel guilty spending money on things that felt “frivolous,” but through the years with all my work around finances, I have been able to neutralize those fears. 

I noticed this one day when booking a massage with Liz Di Guilio of Myomotive (who I highly recommend if you are in the San Jose Area). I realized that instead of feeling guilty and scared because I was spending money, I was thinking, “I’m grateful to be able to support this business owner.”

This thought immediately brought me back to Lynne Twist’s book Soul of Money and the ideas she shares about embracing the flow of money. If you’re curious about her ideas, read my book review here! Embracing the flow can be a great antidote to the fear and insecurity that mark oversaving and underearning.  

If you enjoyed this blog post, you’ll probably really like my free e-Book, 9 Secrets for Financial Self Care. Click here or below to grab your copy today. 

By |2023-06-22T09:59:13-07:00June 22nd, 2023|Categories: Financial Clarity, Money Mindset, Small Business, solopreneurs|Tags: , , , , , |0 Comments
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Stellar Solopreneurs: How a Digital Marketing Consultant Does Money

Digital marketing is a valuable and sought-after skill, and with more and more businesses trying to reach their audiences online these days, there’s usually plenty of clientele. But how do marketing consultants turn bustling businesses into a money systems that sustain and support their lives?

In our second installment in Stellar Solopreneurs this month, we’re hearing about just that from Tracey Lee Davis of ZingPop Social Media. Not only does Tracey deliver professional excellence (I can personally attest to this as a happy former client), but she also has a lot of wonderful words of wisdom for solopreneurs looking to build confidence around their money systems in their businesses. She is one of my bookkeeping clients, and one whose sterling money habits I continually admire! Check out what she has to say:

What are some financial habits you use in your business that help you stay calm

and confident about money?

VERY early in my career, a cohort in a networking group shared with us that she owed over $10K in taxes that year, and she didn’t have it. That absolutely terrified me. I already had a plan for saving for taxes, but that moment solidified that I would never “fudge the numbers” with that account. So every week, I make sure that I am dividing up my income based on paying me, paying my taxes, and paying my business. I have never had an issue paying my taxes in my almost ten years of business! Whew!

How do you prepare for taxes in your business?

I used to painstakingly create an Excel spreadsheet that was many tabs in total. I would scour through emails and receipts to make sure I got everything listed correctly. And I relied heavily on my calendar to track medical appointments and volunteer miles. It took me hours to do all of this. Now that I am using Angela’s services, it is ridiculously simple to do my taxes every year. I really just need to keep track of my mileage, which compared to what I was doing before, is a breeze!

Are there any tips for financial record-keeping you want to share with other small

business owners?

While I am so happy using QBO for my bookkeeping, I started out using an Excel spreadsheet to keep track of my invoices. That early system really helped me with divvying up my income, and honestly, I couldn’t wrap my brain around how to easily continue to do that without that spreadsheet when I started using QBO. So I still use it, more for making the math easy and keeping track of my invoice numbers rather than for official bookkeeping purposes. Having that redundancy gives me an easy way to keep everything straight; I can leave myself notes, and it makes moving money into different accounts on my weekly money day so simple.

How do you make decisions on what to spend on for your business, and what are some

things that help you do that?

I am a very frugal person by nature, so I generally am very cautious when it comes to spending money. One of the biggest considerations is, “Will this investment ultimately save me time in the long run or make my life easier in some way?” So getting a bookkeeper, getting a VA, getting a CPA, all of these are smart investments for me because they do their job so much better than I can, and they do it faster, too. So it frees up my time to work on the things only I can do and the things I love to do. Also, if I am spending my free time doing something business-related because I don’t want to take away from my time for client work, it is absolutely worth investing in having someone help me with that task. Our free time is so valuable!

Another thing that has made a difference in making decisions on what to spend was getting a business credit card. I functioned for many years in my business without one, and that was fairly limiting if I didn’t have enough cash in the bank for a big purchase. My business credit card has definitely made a difference in that regard!

What are some financial goals in your personal life that your business income has

helped you reach, and how do you make sure that’s happening?

Travel is important to me. I have friends all over the world and seeing them in person is balm for my soul. When I finally took the plunge to get a business credit card, I made sure to get one that gave me travel rewards. This has allowed me to take a number of trips that I wouldn’t have been able to afford otherwise.

What’s something you wish you’d known about the financial side of running your own

business when you got started?

I started my business in December/January. I didn’t think at all that a lot of annual costs would need to be renewed in those months. I also didn’t know they would be the slowest months in my business. So while I wouldn’t change when I started my business, I am glad to be able to let people who are starting to think about opening their own consider when you will have other big expenses in your life and when your business will have natural lulls. There have been a number of years when the holidays, my recurring business costs, and slow business have been a bit uncomfortable, but hallelujah for that business credit card!

Want to connect with Tracey’s wonderful digital marketing services? Check out her website and join her mailing list. You can see a full list of her offerings, from webinars to memberships to 1:1 coaching, right here. I highly recommend her membership – my business benefited greatly when I was in it!

If you enjoyed Tracey’s thoughts on small business finance, you might also like to check out our free resource, The Cashflow Reboot Guide. Download your free copy here or by clicking below.

By |2023-05-25T11:58:26-07:00May 25th, 2023|Categories: Bookkeeping Business, Small Business, solopreneurs, Taxes|Tags: , , , , , , , , , , , |0 Comments
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Stellar Solopreneurs: How an Herbalist Does Money

Have you ever wondered how an herbalist makes money? This month on the blog, I’m running an interview series called “Stellar Solopreneurs!” We’ll hear from a couple different small business owners about their own financial insights and how they set up their money systems for financial success.

Today we’re hearing from Madeleine (aka Magic), who is the Head Content Creator for At Peace With Money, but also the herbalist extraordinaire of Roots in the Cracks Herbal Hub! Magic teaches online and local classes on herbal medicine making and identifying medicinal plants, and also runs an online educational membership, The Autonomous Herbalism Learning Community. Check out what they have to share about the financial side of their business:

Are there any tips for financial record-keeping you want to share with other small business owners?

I run a very simple business that’s service-based, so although I sometimes purchase supplies, I don’t typically have many transactions. I do all my financial record-keeping in a spreadsheet with a couple different tabs. Maybe I’ll outgrow this at some point, but for now, it works really well. I want to share this because I want other people to know you don’t have to overcomplicate things. As long as I stay on top of my record keeping and do it regularly, this very simple spreadsheet system works for me.

How do you prepare for taxes in your business?

My main strategy for this is that I have a tax savings account, very similar to what’s suggested by Profit First. I make sure that I factor in how much I need to save for taxes into my prices. This has been especially helpful when I’m preparing a new class series and figuring out how to price it. I know that a certain percentage will get taken off the top for taxes, so I price with that in mind. It’s really helpful to have the money on hand when it comes time to pay and helps me avoid emergencies.

How do you make decisions on what to spend on for your business, and what are some things that help you do that?

One time Angela gave me the advice to think about spending decisions in my business by asking the question “Will this help me make more money?” It seems like a simple question but it’s really helped me prioritize and think about what to invest in.

This advice helped me make the decision to hire PedX Courier & Cargo, a local bike courier co-op, to put up flyers for me, because paper flyering seems to be the best way to market my classes. Doing this increased enrollment and also freed up a lot of time for me because I wasn’t the one pasting up flyers all over the county! (I highly recommend PedX for people in the Santa Cruz area, by the way!)

What’s something you wish you’d known about the financial side of running your own business when you got started?

I wish I’d known better how to price my classes and membership. In the last year or so, I’ve had to reconcile with the fact that in some ways, I was running my business at a deficit to myself.

Now I try to ask myself questions like “Ok, how much am I getting paid to teach this class/run this membership? Is that enough for me to sustain myself and not feel scarce or burnt out?” Pricing is a much bigger part of the process of producing each class I teach, because I put a lot more time into thinking about how I can be financially accessible but also sustainable. There’s a lot of math involved, but it’s worth it because I get to still offer classes on a sliding scale, something that’s really important to me.

Want to connect with Magic’s herbalism work? Check out their website and join their mailing list, Herbal Magic Notes, to receive free recordings of the herbal workshops. If you liked their thoughts on small business finances and want some more ideas, check out my eBook, Reach Your Life Goals: A Business Owner’s Guide! Click here or below to download your copy.

By |2023-05-11T12:06:24-07:00May 11th, 2023|Categories: Small Business, solopreneurs, Taxes|Tags: , , , , , , , , , , , |0 Comments
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All About Oversaving, And Why Overcoming It Can Strengthen Your Business

Often issues with money stem from not having enough – so when you hear the word “oversaving,” it might not sound bad. However, oversaving can be a serious issue that may be blocking the potential of your business. It may also point to anxieties that need to be resolved. Let’s take a look at what oversaving is and what you can do to overcome it.

What Is It?

If you experience anxiety or guilt over spending money, even on basic necessities, you may have oversaving tendencies. You might struggle to spend money on your business or operating expenses. Alternatively, it might be hard for you to spend on something other than reinvesting in your business. Or, you might have a hard time parting with any money know you could save it for retirement or business emergencies.

Oversaving both stems from and enhances anxiety, stress, and burnout. It often comes from a fear of scarcity. While saving money is an important skill, if it’s taken to an extreme, it can keep you from spending money to solve urgent problems in your business and your personal life.

What Can You Do About It?

Saving money is a great habit, but the key to overcoming the oversaving habit is to get strategic about your saving. Rather than living in this panicked feeling of “I have to save every dime I possibly can,” create some money systems! Coming up with savings goals, establishing a spending plan, and automating your money are all great ways to introduce strategy and systems. 

Savings goals can be especially helpful, because they can lend purpose to all that saving, but they also create an end point you’ll eventually meet. Limiting and directing your savings in this way can help curb the habit and assuage your anxieties. When you use the Profit First system, you put aside money to pay yourself first, but you also save for taxes, put aside money for operating expenses, and also distribute profits every quarter, which are meant to be spent by YOU so you can reward yourself for your hard work. If you’re interested in learning more about the Profit First System, check out the first 5 chapters of the book here.

Doing some emotional work around money can also really help you clear up your oversaving. I recommend reading Bari Tessler’s The Art of Money for more ideas about this. She helps you unpack your feelings around money and combining the practical with the emotional. If you’re interested, check out my book review.

Oversaving can be a sneaky habit, difficult to catch and overcome, but I believe in you – you can do it! And anyway, saving is so much more effective when it’s done in order to meet a goal. If you enjoyed this article, I suggest looking into Profit First. If you want to chat more about these ideas and take a look at your money, you can take a look at my service packages and book a call. Doing a year-end review could help you identify a couple goals to save for!

☮

Angela

Photo by Sharon McCutcheon

By |2022-01-12T10:57:45-08:00December 19th, 2019|Categories: Personal Savings, Personal Spending, Profit First|Tags: , , , , , , , , , , , , , , |0 Comments
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