People looking to successfully start or grow a small business must strive to maintain financial wellness.
This concept refers to a person’s ability to effectively manage their personal and business finances to meet their short- and long-term goals.
CommunityWorks, a statewide nonprofit lending institution, offers a free program to entrepreneurs who wish to improve their financial wellness. The program aims to help clients follow a clear action plan to earn, save and spend money that aligns with their values and future vision.
The program targets minority business owners at any stage of their entrepreneurial journey. For example, someone in the ideation stage of starting a new business can seek coaching to receive guidance on how to get their finances in check. Established entrepreneurs can also request coaching if they don’t have the tools to scale their business.
Each client takes a financial-wellness assessment before receiving one-on-one coaching. Edris Tucker, the financial coaching program manager, said the free assessment helps to identify a person’s relationship with money and current financial behaviors.
This year, Tucker also started giving the financial wellness assessment to those who applied for CommunityWorks’ startup loans. Qualifying businesses can receive up to $50,000 through this loan. To apply for the loan, the entrepreneurs must show their two-year personal and business tax returns, their business plan and more.
“Our ultimate goal would be to have people be completely bankable, to go into a bank and they can get a loan,” Tucker said.
Following the assessment, the financial coach will help the client create a personal action plan that will help them accomplish their financial goals. Tucker explained she also helps clients learn how to create a budget if they don’t already have one along with a spending plan. Many clients also need help understanding their credit reports and how not to fall victim to predatory lending.
In addition to one-on-one coaching, CommunityWorks also offers financial and business classes through its Women’s Business Center. For more information, visit communityworkscarolina.org.
Goals
Edris Tucker, CommunityWorks’ financial coaching program manager, aims to help 121 new entrepreneurs with financial wellness each year.
