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Building a business is an exciting thing, but often unpredictable journey. Some months, you are moving up, seeing growth and momentum; other months, things slow down, leaving you stressed and questioning your financial stability. But as a Hispanic entrepreneur, this roller coaster can be a silent weight, a voice in your head that sometimes speaks through your partner, parents or friends, reminding you that results are still waiting. But mostly, it's your voice.
Let's be honest: Unstable cash flow it's a big challenge. There's no way to find financial peace when you feel like you're on top of the world one month, and the next, you're looking at your expenses, wondering how you're going to cover them. This discrepancy affects more than your bank account; it invades your peace of mind, making it difficult to plan for the future.
I know you're eager to make it work, even though you sometimes feel like sacrificing your paycheck every month would be enough. However, in my experience, there are not enough guidelines that speak directly to the challenges we face black women and Hispanic entrepreneurs. When I started, resources were scarce, and running a business striving for financial stability was even more challenging without a strategy that took into account who I was as a person, my beliefs, my internal limitations, and the strategic way to achieve there. I made mistakes that delayed my financial stability. But through these setbacks, I learned lessons that helped me navigate my way to success—lessons that can help you avoid the same pitfalls and get there faster.
After all, we all benefit when this information is shared. For example, Latina entrepreneurs represent 16% of all women-owned businesses in the US and have generated over $65 billion in revenue in a single year. Imagine how much more we could achieve if we had access to the right tools and knowledge from the start.
Let's dive into the three biggest mistakes that can derail your financial stability—and, more importantly, how to avoid them.
Related: How My Hispanic Heritage Fueled My Journey as an Entrepreneur and Leader
Ignoring the importance of financial literacy as a business owner
We are making progress in financial literacy as a society. Still, when you get into entrepreneurship, a whole new level of financial education it is necessary, which many of us did not grow up learning or seeing, yet it is so important. Consider that for most of our lives, we have operated from the perspective of the consumer; we have been managing our finances and reacting to money from the “buy” side, looking at how to maximize the amount of money we have (discounts, sales, promotions, lean budget, zero spending, etc.). But when you're a business owner, you have to master the “selling” side. It's a whole new mindset that requires a deeper understanding of how money flows.
For example, understanding cash flowthe art of pricing, how to negotiate, tax planning, retirement and investment strategies are no longer a nice-to-have, but an essential step if you want to grow as a business owner. If you're not actively learning about these areas, you're limiting your growth and putting your business at risk. Avoid falling into the trap of as long as you're bringing in income, you'll be fine because it's not just about the money coming in; it's about how that money is managed, reinvested and held.
How to avoid it:
Start prioritizing financial literacy right away. Find it SOuRCES that specifically cater to entrepreneurs. Take courses, attend seminars or find a mentor who can guide you through business finance. Knowledge in this area will empower you to make better decisions and accelerate your path to stability.
Related: The basics of financial knowledge that entrepreneurs need to know
Holding shame and guilt about income
For many of us, especially in the Latino community, there is a deep-seated cultural anxiety about money. We grow up hearing messages like “Get money, but not too much that will make you a bad person,” or that talking about money is rude, but we're also taught to handle it with grace, which means keeping ambition in check. ours. . These messages are often translated into subconscious habits with money and feelings of shame or guilt, especially when we start earning more or see financial success in our businesses.
I distinctly remember feeling guilty about charging what my services were worth. It took me a long time to realize that this mindset was sabotaging my financial well-being and was rooted in the bare beliefs and feelings I grew up with.
How to avoid it:
It's time to reframe your relationship with money and question and shape your beliefs, ideas and feelings about earning and managing money for your financial growth. Financial independence and wealth allows us to create opportunities for ourselves and our community, so there is no room for feelings like shame and guilt to get in our way.
Surround yourself with people who reinforce this belief and help you build confidence in your earning potential.
The disconnect between identity and money
As a Latina entrepreneur, you may also experience a conflict between your cultural identity and your financial goals. Many of us have grown up with the values of community and collective well-being, which can sometimes feel at odds with personal financial success. We may fear that the pursuit of wealth will take us away from our roots or make us seem less connected to our culture.
This disconnect can prevent you from fully stepping into your role as a business owner. I've seen this tension in myself and in others, the feeling that if we become too successful, we might somehow betray our upbringing. But this is simply not true.
How to avoid it:
Financial success is a cultural victory, and the more images and examples we have walking this path, the more normal it would be for them to come to replicate and make new standard ways of being financially independent.
You can be deeply connected to your legacy—and I strongly encourage you to do so—while also building wealth. Embrace your identity as part of your entrepreneurial journey and let it fuel your success.