Financial management for entrepreneurs

By Paula Anderson

One of the most important aspects of financing a business is the ability to have a good credit score. Your personal credit score determines whether you will qualify for a business loan. According to, a credit score is based on credit reporting companies, such as Equifax, Experian and TransUnion.

In 2020, I started working with a financial coach as an accountability partner. She listened to my financial goals and gave recommendations. Many times financial coaching services are for available to individuals who have low-incomes and those working a full-time job. Sales and revenue will not always be the same for an entrepreneur. Some months will be profitable and some months will be a loss.


As an entrepreneur, your monthly income may vary and this will make if difficult to forecast projections and expenses each month. Having a financial action plan is key to reaching your goals. You can create monthly goals for planning purposes. Establishing relationships with lenders will also help with learning more about financing options and solutions.

In 2021, I was able to get funding from a community financial development institution (CDFI). This is an alternative to traditional bank lending. Although my personal credit score is a reflection of our character, it is not the only criteria that is used to determine credit worthiness. While I was pursuing a second career, I did not have stable income. Therefore, my credit score was fluctuating. In 2021, I developed a financial vision board to monitor my score each month.

To learn more about the financial management course, schedule a new client consultation.

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