The holidays are one of my favorite times of year. After the year we have all had, we deserve a little or a lot of Hallmark movies, cozy pajamas, decorating our homes and of course, exchanging gifts.

Whether you’re giving the gift of self-care or the latest tech gadget or something for the beauty lover in your life, my gift guide has something for everyone! 

1. Peloton Bike, $1900, Peloton

Take your cycling to the next level. Users describe this bike as smooth, quiet, user friendly, and sleek. Bonus gift: A Peloton subscription for videos.

2. Wellness Journal, $33, Papier

Start and end your day with a fresh mindset, set intentions, and take note of the things that make you feel good.

3. A Promised Land By Barack Obama, $24, Amazon

Obama takes readers on a compelling journey from his earliest political aspirations to the pivotal Iowa victory that demonstrated the power of grassroots activism to his run as the US President.

4. Black Pride Shirt, $24, Etsy

The buttery soft cotton tees are stylish, comfy, pair perfectly with jeans, and will be a new wardrobe favorite.

5. Black Owned Jewelry Brands, $16, Etsy

Buy Black this year without breaking the bank. Support Black designers like Forever Mahogany on Etsy.

6. Lululemon Velvet Leggings, $118, Lululemon

Lounge like a boss in this crushed velvet version of Lululemon’s wonderfully warm and soft Wunder Under-inspired pants.

7. Bath Caddy, $50, Amazon

Load up your caddy with your favorite wine, iPad booted with Netflix, and snacks for a relaxing bath. You can also add soaps and oils for easy access.

8. Sade Box Set, Free on Spotify, Amazon Music and Apple Music with subscription or $500 for vinyl set, Sade.com

All of the band’s acclaimed albums: Diamond Life , Promise , Stronger Than Pride , Love Deluxe Lovers Rock , and Soldier Of Love are packaged into box.

9. Amazon Echo, $35, Amazon

Play music, take calls, send messages, and more. Compatible with other smart devices such as lights and thermostats with this new home must-have.

10. Juicer, $100, Amazon

Create healthy homemade juice in seconds. Juice a variety of fruits and vegetables. BPA-free pitcher with lid and froth separator.

11. Ulta Gift Card, Price Varies, Ulta

The gift that keeps on giving. Let the beauty lover in your life grab all of their favorites.

12. Young, Gifted and Black by Antwaun Sargent, $50, Amazon

This book is the perfect gift for woke bae as it surveys the work of a new generation of Black artists, and also features the voices of a diverse group of curators who are on the cutting edge of contemporary art.

13. Luxury Candles, $25, Blk Sunflower

With boss vibe names like “Per My Last Email”, “Pillow Talk”, and “All That Jazz”, this Black owned candle company not only creates fragrant candles but are a whole mood overall.

14. tgin Foundation donation, price various

Give the gift of support. The tgin Foundation’s mission is to combat and bring awareness to the health disparities in the Black community specific to breast cancer. Make a charitable donation in someone’s name.

15. Anxiety “On My Last Nerve” Tea, $15, Etsy

Reduce holiday stress by drinking away your worries – the healthy way. Notes from lemongrass, hibiscus, ginger, and orange peel shift your attention to the citrusy, tangy, warming experience of the tea.

16. Bath Salt, $18, Get Maude

This calming salt blend softens and rejuvenates the body. Filled with hand-harvested salt crystals from the Southern Dead Sea, soak contains nourishing vitamins and minerals.

17. Roomba, $180, Target

A new meaning to set it and forget it. Never sweep again with this new robot floor vacuum. Equipped with sensors, you can trust Roomba to get the job done.

18. Adidas Sneakers, $50, Amazon

These classic Cloudform running shoes have been described as the “softest shoes on the planet” due to the memory foam cushion.

19. Noise Cancelling Headphones, $60, Amazon

Block out all distractions to work from home, or just enjoy music/podcast in peace. Get 30 hours playtime per charge.

20. Hillman College T-shirt, $15, Amazon

Calling all A Different World fans! Rep your set as we are all alums of the fictional HBCU.

21. Fanny Pack, $30, Elly Vista

A small waist bag equipped with a zip compartment, a pocket at the front, a breathable material on the back, and an adjustable strap. Great for traveling!

22. Herb Garden, $25, Amazon

Easily grow your own herb garden at home. Four types of fresh herb seeds for planting indoors, biodegradable pots, soil pellets, plant labels, and a gardening guide.

23. Apple Watch , $200-$400, Apple

Basically a computer for your wrist. Manage your health, make calls, send texts, and much more.

24. Glam Face Mask, $10, Etsy

We have to wear masks so why not add an element of glam! Double-layered with soft cotton and a filter pocket, this design is more than just fancy.

25. Savage Fenty Silk Robe, $40, Savage by Fenty

This must-have classic comes in silky satin and features a matching belt – and now updated for a good cause. Featuring a custom Savage X Fenty + CLF logo and in the brand’s signature color, a portion of the proceeds of this piece will benefit Rihanna’s Clara Lionel Foundation.

Remember that gifts are a great way to show appreciate and love but the best gifts in life are free. Opting for virtual gatherings, wearing masks, social distancing, sending gifts via mail or giving the gift of a listening ear are great alternatives to traditional gifs. 

I pray that you and your family have a safe and lovely holiday season.

With the volatility and unpredictable nature of today’s business world, it’s totally understandable for some business owners and managers to feel overwhelmed, focusing more of their attention on the ins and outs of producing sales and garnering new clients. However, it’s important not to lose focus on the people who are helping you and your business succeed each and every day. Although your team members may be more than happy to come to work and devote their all to your company’s mission and values, it’s up to you to manage and create a plan for employee development and growth to ensure the company culture stays as positive as it is.

Here are 5 reasons it’s beneficial to invest time, money, and energy into your team.

1.  It helps establish a good working relationship between you and your team.

Investing time and energy into your team members’ individual professional growth will show them you care beyond what they can do for your company. Let’s face it: Not all of your team members will stick around until the wheels fall off, but giving them the proper tools and resources to excel at their job will give them peace of mind knowing their leadership cares for their growth, regardless of whether they’re in it for the long haul or not. It’s important for your team members to feel appreciated, valued, and encouraged to grow; their self-confidence will surely seep into the work they do, which will help them come to work eager to tackle the day ahead. At the end of the day, when your team is happy, you’re happy.

2.  Your team will work smarter instead of harder.

By providing your team with the resources they need to grow both professionally and personally, they will be able to approach problems and day-to-day tasks with a new, more efficient perspective. For example, if you invest in providing your team with a time management course, they can take what they’ve learned and apply it to their daily workload, cutting down the time they spend on unproductive tasks and getting more work done in less time.

3.  Your company will be a breeding ground for effective, motivated employees.

You can tell when a company invests in its employees; its productivity is more than likely through the roof, morale remains high, and most importantly, there is low employee turnaround. When employees are challenged, empowered, and most of all, well paid, they are more likely to be motivated to excel at their job and put their all into the company’s mission. This isn’t to say every employee should be making six figures, but they certainly shouldn’t be taken advantage of. Their salary should accurately and fairly reflect the level of work they do and how much value they bring to the company. It’s not always about money, but it is definitely a great motivator.

4.  Your company will be in a better position to make more sales and/or sign more clients.

The only way to produce a productive team is to nurture the professional growth and development of each individual member. The knowledge they entered the company with can only take them so far; it’s up to you as the team leader to recognize your team’s shortcomings, whatever they may be, and adjust accordingly to make the most kickass, effective team possible. By showing your support, listening to their concerns, and working with them along the way, you’ll be able to strengthen their skill sets and improve the productivity of the entire company.

5.  The office culture will drastically improve.

When your team members feel valued and respected, the culture of the entire office/company improves. People who are uplifted and given a fair chance to succeed rarely ever squander the opportunity. You will continuously reap the benefits of having upbeat, positive team members in your circle, and you can rest assured your company and its mission is in good hands.

Although it will take some time, energy, and potentially money on your part, investing in your team will drastically improve the overall morale, productivity, and success of your business as a whole. Teams thrive in environments where each member is challenged, valued, and respected, and it’s up to you as the leader to make those opportunities available to your staff. After all, without them, your company will not be able to effectively and efficiently cater to your customers on the level you should be.

What are some ways you make sure your team members feel valued?

With the recent shelter in place order issued by Illinois Governor JB Pritzker, we had no choice but to require certain members of our team to work at home during this pandemic to ensure the health and safety of our workforce. Like most companies, shifting to a 100% remote workforce, comes with its fair set of challenges, but here are a few tips to get the most out of your day and your team:

1. Hold Regular Stand Up Meetings Every Morning. Our team meets everyday at 9am to go over our plans for the day, what we’re working on, any blockers and if we need support. These meetings not only increase accountability, but ensure we stay connected while we’re out of the office.

2. Have every employee submit a written summary of what they accomplished at the end of the day.  This again ensures we’re giving our all and getting the most done with our day given our resources.

3. Set Clear Priorities for the Day and the Week. Every Sunday night, me and the head of Marketing meet to go over each individuals priorities for the week. It helps ensure that we’re all clear on what is important and what success looks like for the upcoming week.

4. Invest in training – During this slow period, we’re encouraging our employees to invest in training and development. ProjectManager.com on You Tube has a great series of over 300 videos on things like running efficient meanings, project budgets. There are also great videos on Event Planning, Marketing Your Event, Reaching Your Event Goals, etc. that are directly relevant to our Marketing Team. This is a great time to sharpen the saw.  

5. Use video conferencing to stay connected. Whereas before, we would just make a regular phone call to a work colleague, now we’re strongly encouraging everyone who’s working remotely to use Zoom. Face to face interaction again helps with maintaining bonds and connections and ensuring the team still is invested in each other’s success.

** Bonus — When it comes to managing remote teams, set guidelines about what’s acceptable and what’s not acceptable, so everyone is on the same page. Crying babies, barking dogs, etc. We all have a lot going on , but we need to still try our best to be professional and productive.

The key take away is that you can’t underestimate the importance of communicating as a team during a time like this. Working home can be a great time to get deep work done and focus, but connection and interaction is super important and should be prioritized as well, so here’s hoping these pointers help.

So, if you’re managing a work from home team, what are your tips for ensuring success? If you’re working from home, how dow you manage to get it all done?

In this era of serial entrepreneurs and hot IPOs, it’s easy to get caught up in the stories of startup successes. From crowdfunding to strategic online marketing and viral content, today’s young businesses have the best opportunities to quickly grow into multi-million dollar corporations. But behind all of the glitz and glam of the entrepreneur lifestyle, there’s a shocking truth. Unfortunately, startup failures are far more common than most people realize, and the reasons why may surprise you.

Here are 4 reasons why today’s startups fail, even when the people involved have all the tricks of the trade.

1. No Market Need

According to a CB Insights infographic, the number one reason why startups failed is because they had “no market need.” In other words, there was no customer base or no specific reason why a customer should buy into their product or service. In order to be successful in business, you must solve a problem for your customer. If there’s no problem to solve or no specific customer to reach, you’ll wind up putting all of your money and time into a useless product or service. 

This is why it’s important to test your product or service among a small market of consumers and get feedback on what’s working and what isn’t. There’s nothing worse than investing all of your efforts into a business idea that’s not sustainable.

1. Ineffective Team/Low Morale

When we hear about a business going belly-up, people often assume it was because of a lack of cash flow, and while that is often the case, you have to ask yourself why the company’s profits faltered in the first place. Unsurprisingly, the people who make up a company play a dynamic role in sales performance and customer reach. When a team is ineffective or when the company culture is compromised, productivity slows, products and services are not sold, and growth becomes nonexistent. 

To function as a well-oiled machine, everyone must be on the same page and employees must be treated with the utmost respect. Sales cannot be made without a motivated team pulling the reins.

1. Lack of Customer Care

Customer care should be at the very top of every business’s priority list for obvious reasons. Stemming off of reason #1 for startup failures, if there is no customer, there is no business—and it’s as simple as that. It’s your job as a business owner and service/product provider to exceed your customer’s expectations, listen to their needs and wants, and respond accordingly. The companies, startups especially, that fail to do this are almost guaranteeing their downfall.  

1. Money Troubles

To no one’s surprise, money problems are a huge factor in the failure of a startup; however, they are not even close to the top of the list. Business is fundamentally a human endeavor—humans trying to connect to other humans. Achieving success in product development, technology, business models, and funding are the result of getting both your team and your customers right. So, ultimately, startup success comes down to people, both the people inside the organization and the people outside of it (customers). Once this important priority is nailed down, making money becomes second-nature. Earning money fails when the team fails; you can’t have one without the other.

Let these findings serve as a warning for aspiring entrepreneurs. Yes, the entrepreneur, “grind” lifestyle is what’s in now, and you may be eager to be self-sufficient, but there’s more to business than just proclaiming that you’re an entrepreneur online. People must be your priority, your values must be aligned, and you must have a sound business plan that takes everything into account. Your customers and your team drive your business and ultimately determine whether you’re here to stay in the business world or not. Ignore them at your own peril.

Like any industry, the world of beauty can be cutthroat, proving to be an inhospitable realm for thin-skinned business owners or people without the gift of constant innovation and creativity. When I was a baby business owner, I took this stereotype and ran with it, vowing to keep my business insights and creative ideas to myself. See, at the time, I believed every beauty company was fighting for the same shelf space and customer base, and if I shared my knowledge or asked for help, I would either be taken advantage of or shut down completely. So, I kept to myself for a long time, only consulting with my team and a few select beauty biz buddies.

Man, was I wrong, though. Over the years, I’ve come to learn that working with the “competition” is the best decision any business owner can make. Not only is there so much to be learned from others in the industry, but there is more than enough space for all of us to be successful and thrive. As the saying goes, “It’s not what you know, it’s who you know.” The industry is constantly changing and the products customers are looking to buy are also always in flux. With that comes the need for many new innovative ideas and creative approaches that simply can’t be conjured up by one person or company.

In the spirit of collaboration, my team and I have adopted a term into our business practices that puts all of this into perspective: “coopetition.” Coopetition is the perfect blend of cooperation and competition, and it is the very essence of what I want my interactions in the beauty industry to be—business owners helping each other succeed without thinking of each other as “the enemy.”

Here are a few reasons why it makes sense to work with your competitor, not against them.

1. Better Information

We don’t have to share our formulas or the nitty-gritty details of our product launches, but talking to each other about business operations or productivity tools gives us better information to work off of, which allows us to make more quality, informed decisions faster.

2. We’re stronger together and can advocate for one another. 

Like I mentioned before, the beauty industry can be very tough to navigate. With that in mind, doesn’t it make sense to join forces with other like-minded individuals who you can bounce ideas off of? There’s no point in trying to traverse through this industry alone when there are so many other great, collaborative minds to work with.

3. New entrants from beauty giants are flooding the space.

Being able to talk to other small and medium-sized businesses allows us to better compete with larger, more established companies, like PG, Unilever, and L’Oreal, that are, in many instances, looking to remove us from the shelf. There’s no limit to what we can do when we join forces and work together.

4. History repeats itself. 

Bouncing ideas off of one another or simply talking through the ups and downs of business gives new CEOs and business owners the opportunity to learn from beauty industry veterans who have been in this space for 15, 20, or 30 years. These people are better able to help us not make the same mistakes they made when they first started, and they can provide more sound, practical advice we can put to use.

5. Grow the Pie 

Markets like Europe and Africa have a demand for quality US goods, but the regulatory and logistical challenges can make it hard for one company to go at it alone. When small and/or medium-sized businesses work together to meet the demands of these international markets, we can achieve better, more consistent sales and broaden our customer reach with less time and effort.

6. It feels good to collaborate, and it’s fun! 

Connecting with others allows you to let go of the impossible amount of stress that comes with never-ending competition. Plus, it’s much easier to navigate the business world and maintain your sanity when you’re helping others instead of constantly feeling like your guard is up.

Although, logistically, many beauty companies are competing for the same customers, revenue, and profits, there are times when it makes sense to work with the competition instead of against them. Not everyone is out to get you or see you fail, and on the contrary, many of your business associates may be eager to share their knowledge and connect with you. You have to be willing to step out of your comfort zone and network with like-minded individuals who also recognize the importance of collaboration. There’s more than enough space in this industry for all of our businesses to grow and thrive.

In what ways do you work with your competition?

Now that Congress has passed the landmark Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) stimulus package, which offers up to $350M in relief to small businesses, here are some resources to help you understand the difference between Economic Injury Disaster Loan Program and the new Payroll Protection Legislation. The Senate’s plan currently supports American small businesses in the following ways, according to policy experts:

• A $350 billion forgivable loan program designed to ensure that small businesses do not lay off employee
• A 50% refundable payroll tax credit on worker wages will further incentivize businesses, including ones with fewer than 500 employees, to retain workers
• Looser net operating loss-reduction rules that will allow businesses to offset more
• A delay in employer-side payroll taxes for Social Security until 2021 and 2022
• Sole proprietors and other self-employed workers could be eligible for the expanded unemployment-insurance benefits the bill provides

 
How does the $350 billion small-business loan program work?

The Small Business Administration, under the stimulus package, will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees. 

“The SBA loans strike a balance between loans on favorable terms and grants by providing forgiveness to firms that use loaned funds for payroll, rent, mortgage interest, and utility payments,” said Garrett Watson, senior policy analyst at the Tax Foundation, a Washington, D.C.-based think tank. Loans will be administered by banks and other lenders, which American Enterprise Institute resident scholar Stan Veuger said “will hopefully speed up the process.”

Businesses can receive loans up to $10 million, based on how much the company paid its employees between Jan. 1 and Feb. 29. The loans will carry an interest rate up to 4%. The bill provides for an expedited origination process.

If the business uses the loan funds for the approved purposes and maintains the average size of its full-time workforce based on when it received the loan, the principal of the loan will be forgiven, meaning the company will only need to pay back the interest accrued. 

More Information:

FAQs-Small-Business-Loans-Under-the-CARES-Act

Coronavirus Relief Resources for US Business Owners Mar 25 F

Last week, I was flooded with calls about the drop in the stock market, the shortage of toilet paper, and the recent shelter in place laws being passed across the country. Despite the overwhelming sense of anxiety, as a business owner, I see this Corona thing as a major opportunity. I told my assistant the other day, this Rona is slapping us around a bit, but I actually like it, because I feel like I’m learning so much and I love problem-solving! I know this sounds kind of strange, but I actually like being knocked down, because when I get up, I can look back on a situation and say I handled that well.

This entire situation reminds me of a book that I recently picked up called Black Fortunes: The Story of the First Six African Americans Who Escaped Slavery and Became Millionaires. When I started reading the book, I immediately became enthralled by the stories of people like Gold-rush abolitionist Mary Pleasant, real-estate magnate Robert Reed Church, and beauty mogul Annie Turbow Malone. It was amazing to see how this generation of ex-slaves not only prospered shortly after the Civil War ended, but how they became incredibly rich by taking advantage of times of extreme economic, social and political uncertainty.

To ensure we, at tgin, weather this storm and come out on top, we’re taking the following steps, many of which small businesses can take advantage of to manage cash flow during this crisis.

1. I recently applied for the SBA Disaster Loan. This loan is for up to $2M with a 3.5% interest rate payable over 30 years that can be used to pay down payroll and as working capital in our business. I view this as free money and an opportunity to invest in the growth of the business long term.
2.  I have instructed our warehouse team to ship POs ASAP and prioritize larger volume POs over smaller ones, because many retailers are shuttering their doors and are cancelling orders.
3. In the same vein, I’m having my Ops Coordinator review all vendor contracts for cancellation ad force majeure provisions to determine how much leverage we have here when it comes to cancellation.
4. I contacted all of our US and Chinese suppliers last week and asked them for an update on their business and will be monitoring their business and lead times as closely as my own.
5. I’m in regular communication with my banker and our vendors, and making a list of how we prioritize essential vs non-essential bills, so we can best manage cash flow.
6. I’m studying what other CEOs are doing and reading the discussion forums in my Vistage group to understand the legality of temperature checks, shelter in place laws, PTO policies, etc.
7. I’m taking detailed notes in our Project Management system of how we are managing through this crisis, so that we have a robust disaster recovery plan when this is all over.
8. I’m communicating with my employees the best I can given the information I have available.
9. I’m working on my list of speaking topics, articles and media pitches of How I Survived Corona as an Entrepreneur for when this is all over or maybe right now. If you know of anyone at Good Morning America, the Today Show, Forbes, Inc., Black Enterprise, let me know. Hey, don’t be surprised if I turn this blog post into a LinkedIn article for the business community, which is the true definition of repurposing content. Just know, I wanted you to hear from me first.
10.  I’m thinking of how this crisis may impact our competitors many of whom are under-capitalized and what that means for me both business wise and in terms of potential investments.
11. In addition, with 20%-50% unemployment predicted in the short term and overall long term, I see this as an opportunity to scoop up some amazing talent, so my HR is going to use this slow period to start focusing on screening interviews for positions that we have not filled recently.
12. We’re also shifting our marketing focus from selling products to building genuine connections with many of our customers. This is part of the reason we’re launching a new IGTV Series called Level Up. Every day at 11 am CST, I’ll be going live on IGTV on topics ranging from scaling your business, going vegan, to boosting your immune system, to the power of specific prayer, to dating while in your 30s, etc.. The content with my social team to engage with customers during this time when people are locked at home with nothing to do but watch Netflix and scroll through social media.
13. Finally, I’m investing in a Cannon EOS 700 camera to start creating more rich video and taking online video editing classes on Final Cut Pro.

Yes, there is a lot of uncertainty, but like with Pleasant, Church, Turbow, etc., I see light not only at the end of the tunnel, but a huge pot of gold at the end of this rainbow. As a CEO who is constantly on the go, I welcome this downtime as an opportunity to focus on revising my strategy, so for me this is a total God send and I plan to take full advantage of social distancing and working from home for the next 4-6 weeks. Now if it goes longer than that, we may have some issues.

But until we talk again, take care of yourself, wash your hands, drink some wine, get some fresh air, and let’s keep in touch!

When I was first diagnosed with breast cancer I was forced to, for the first time in my life, relinquish control and take a step back from my work. This moment has been one that I often reference because not only did I learn about the importance of self-care but also how to better run my business without compromising my health. With the Covid-19 epidemic forcing businesses to temporarily close up shop, I encourage entrepreneurs to use this time to pull back and evaluate areas of opportunity to prioritize their mental, emotional and physical health.  Here are 10 things breast cancer taught me about business. 

1. It’s okay to take a chill pill and rest; in fact, sometimes it’s absolutely necessary to do so.
2. There’s nothing wrong with leaning on family and friends for emotional support or additional help.
3. After a certain point, it becomes imperative to hire additional employees to maintain the upward trajectory of the business. I don’t have to be/can’t be Superwoman all the time.
4. It’s not illegal to prioritize my health and put myself and my needs before the business.
5. “Breast cancer gave me the permission I needed to do what I wanted to do, when I wanted to do it, and how I wanted to do it. When my life was hanging in the balance, I quickly learned to reshuffle the deck of life’s priorities” – This Is Only A Test Ch. 4, p. 35
6. The time I have should be spent working on things that bring value to my life and the lives of others. Don’t waste precious time doing what others expect me to do.
7. The biggest challenges in our lives hold the key to the biggest lessons and successes. One of my personal favorites is that “Pressure makes diamonds.”. This means that no matter how hard things get I know that something great is on the other side of the stress.
8. Trust your employees to get the job done without holding their hand along the way. Micromanagement does nothing but slow down the process.
9. Work cannot be a cover up for other deep-seated issues, like relationship problems, insecurities, family issues, etc. You must face these challenges head on, or they’ll come back to haunt you.
10. “Let go and let God” Trust the process/the long game.
11. Stay focused on your own path, strategy, and business. There’s no point in comparing your journey to someone else’s.

Did any of the lessons resonate with you? How often do  you prioritize your well-being over your work?

Everyone knows by now that starting a company requires some money up front to get things off the ground. In today’s startup culture, raising capital with the help of investors and GoFundMe campaigns (equity financing) seems to be all the rage, but what people aren’t talking about are the potential cons of moving in that direction. Sure, it’s nice to have the money you need and the names of some big investors backing you, but in the long-term, you could be giving up a large percentage of your company for money you could’ve gotten an easier, cheaper way.

The word “debt” leaves a nasty taste in the mouths of many, but with 99.95% of businesses never getting venture capital, debt financing is actually one of the best ways you can raise capital for your company without sacrificing ownership. Debt can be very manageable if you understand your business and are careful with your expenses. With a line of credit and bank financing, you’re able to have the money you need to start your business the right way while still holding on tight to your stake in the company.

Here are some pros and cons of utilizing debt financing for your company. 

Pros:

• Maintain Ownership: When you borrow from your bank or another lender, you contractually promise to make payments on time based on your agreed-upon payment schedule, but this is where your obligation to the bank ends. Because you simply borrowed money without releasing stakes in your company, you’re able to run your business however you choose without outside interference (unless, of course, you default on your loan payments). If you go the investor route, however, chances are you will need to give up part of your ownership in the deal. These partial owners now have legal say in how your business is ran, plus they profit from all of your hard work. Don’t give up ownership unnecessarily.

• Tax Deductions: This is a huge attraction for debt financing. In most cases, the interest payments on a business loan are classified as business expenses and can be deducted from your business’s income during tax season. In this case, it helps to think of the government as a “partner” in your business who has an ownership stake (whatever your business tax rate is).

• Lower Interest Rates: In some cases, the interest rate on your bank loan is significantly less than the business taxes you’d pay each year. For example, if the bank is charging you 10% for your loan and the government taxes you at 30%, there’s a potential advantage in taking out a loan you can deduct later on. 

Cons:

• Repayment: Contrary to equity financing, your sole obligation with debt financing is to make on-time payments to your lender. You claim full ownership of your company and have the freedom to run your business how you’d like. However, if your business fails, you are still required to pay back your loan, and if you’re ever forced into bankruptcy, your lenders will have a claim for repayment before any equity investors.

• High Rates: Despite the potential discounted interest rates from your tax deductions, you may still have to combat high-interest rates because they vary based on macroeconomic conditions, your banking history, your business’s credit rating, and your personal credit history. All of these can have an impact on the interest you end up paying, so it’s important to take your time and do your research before jumping into any contracts.

• Impacts on Your Credit Rating: When your company needs money, it might seem attractive to bring on more debt instead of giving up ownership to investors, but each loan you take out will be noted on your personal credit report and can negatively affect your credit rating if they’re not handled properly. Additionally, the more you borrow, the higher the risk is to the lender, so you’ll most likely end up paying a higher interest rate on each subsequent loan.

• Cash and Collateral: Debt financing is a great option, but the point of the loan is to give you some wiggle room to work. If your company is not profitable to begin with, you could run into some problems. Even if your plan is to use the loan for an important asset, it’s imperative that your business is generating sufficient cash flow by the time the loan repayment is scheduled to begin. In addition, you may also be asked to put up collateral to protect the lender in the event you can’t pay on time.

Choosing between debt or equity financing really comes down to what best suits you and your company. Do some research on what is common in your industry and among your competitors. Make some realistic projections of your numbers, including your repayment amount, interest rates, and potential equity cuts. Then, and only then, if the advantages outweigh the risks, take the leap with the best option for you and your business.

To learn more about how I financially started Thank God It’s Natural  check out my interview on Side Hustle Pro.

Debt or equity financing? Which one makes the most sense for you and your business?

In 2016, I was diagnosed with breast cancer after working relentlessly for years on end. As a black woman trying to make a way for myself in Corporate America, my physical and mental health had both taken a backseat to the many tasks I had to take on each day. My diagnosis woke me up, though, and I realized just how much the stress had negatively affected me—inside and out. And now, with the coronavirus pandemic and social distancing mandates occurring, causing many of us to make major changes to our daily routines, it’s even more important that I advocate to working women and highlight the many ways we can manage our stress more effectively to maintain a healthy work-life balance while we shelter in.

While all women face stressors in their everyday lives, Linda Goler Blount, president and CEO of the Black Women’s Health Imperative (BWHI) said “the inequities in the impact of stress on the health and well-being of black women cannot be ignored. The lived experiences of black women speak to the overwhelming stress in their lives.”  According to the Centers for Disease Control (CDC), black women’s life expectancy is three years shorter on average than white women, and some of the root causes may be related to stress. In addition, Blount also pointed to high stress levels as a possible reason for higher maternal mortality rates in black women.

Whether you are stressed from work, your home life, or your personal relationships, here are 10 ways you can manage it and put yourself and your well-being first.

1. Slow down to speed up.

In my book, This Is Only a Test, I talked about the importance of slowing down to speed up. What this means is taking life a day at a time and not worrying too much about your endless to-do list or the future. Take a few minutes out of each day to center yourself, take some deep breaths, and focus on what’s truly important. Slowing down and making sense of your jumbled thoughts will definitely help decrease your overall stress levels.

2. Tap into your spirituality.

Whether it’s through prayer, meditation, or some other form of relaxation, taking a breather and tapping into your spiritual energy can work wonders for releasing stress and getting back to your true, peaceful self.

3. Take a social media break.

While social media has allowed us to connect with people from so many different walks of life, it can also breed a lot of negativity and self-doubt, causing unneeded stress on top of the stress you already experience in your everyday life. Delete those distracting, troublesome apps for a couple days out of the week and see just how much your stress levels decrease.

4. Get your body moving.

It’s been proven time and time again that exercise is a great way to relieve stress and blow off some steam. Join a spin class, take a bike ride, or do some yoga; anything that gets your body moving will certain get you in a better headspace.

5. Listen to your favorite songs.

There’s nothing quite like sitting back and jamming out to your favorite songs. Whether your go-to playlist is R&B, hip-hop, or rock, music has the powerful ability to rejuvenate you and get you back into a positive state of mind.

6. Rest, rest, rest!

If your mind and body have been begging you to take a break and rest, listen! There’s nothing wrong with taking a break, especially if it seems like you’re always on the go. Be mindful of how your mind and body are reacting to your current routine and take some time to rest if you feel it’s needed.

7. Be mindful of your diet.

Incredibly, the food we eat has a remarkable effect on how we navigate through life and how our minds and bodies react to our circumstances. If your diet is heavy in fast food and unhealthy snacks, it may be time for you to reevaluate what you’re fueling your body with. Focus on eating more whole grains, fruits, vegetables, and lean proteins and watch your mental and physical health transform for the better.

8. Set some boundaries.

With so many people depending on you every day, it may be hard to carve out some time for yourself, but sometimes saying no is absolutely necessary. If you know you often get distracted at work, put your phone on do not disturb and let the people in your life know when you’ll be available to talk. If you’re aware that your coworkers or employees like to blow your phone up after working hours, it’s important to have conversations with them to set some boundaries so you can stay sane.

9. Ask for help.

Women have a tendency of taking on the Superwoman role unnecessarily. While there may be a plethora of people or tasks that need your attention, it’s important for you to understand that you don’t have to do it all alone. If you’re struggling to keep up with your work or your day-to-day tasks, ask someone you trust for help. This will help lower your stress levels while making sure everything gets done the right way.

10. Develop a support system.

Piggy-backing off that last point, support systems are super important, especially if you’re a working mom who can’t be in two places at once. Lean on a trusted friend, family member, or group to help you navigate those busy seasons of life. You’ll be happy to know there are people in your corner rooting for your success.

Stress is a necessary evil, but that doesn’t mean it should take over every aspect of your life. Take some time to sit down and prioritize the different aspects of your life, making note of what needs your attention the most and what can either be delegated to someone else or wait for a better time. Your mental and physical health are so important, and I want to make sure you get a handle on your stress levels before they negatively affect you and your health.

What are your favorite ways to destress?