by Michelle Thornhill

Research suggests that African Americans are more likely than the general population to have small business aspirations. But I’m sure this is no surprise to you! Many of us grew up with dreams of “being our own boss” and becoming the next neighborhood success story. Owning a successful business can be a realistic goal for many, but it requires dedication, preparation, discipline and knowledge.

At several points during my career, I pursued entrepreneurial endeavors. When I first graduated from college, the job market was challenging – similar to what we are experiencing today. I decided then that if I couldn’t find a job I would create one.

First, I took the time to consider the skills I acquired in college to determine how best to capitalize on them. Given my studies in finance, I decided that I would start a tax service business. I knew that the field was competitive, so I created a niche for my new business by offering pick-up and delivery services.

I was very excited to become a small business owner, but not so eager that I didn’t take the time to deliberately plan and prepare for success. Before pursuing my first client, I made certain to develop a long-term business plan. Having a solid plan allowed me to define my business, outline my products and services, create my marketing strategy (including target audience and geography) and develop a financial plan. It also helped me look serious to potential clients, investors and lenders.

I learned that it is equally important to seek guidance from subject matter experts who specialize in small business. Most states have small business development centers or branches of the federal Small Business Administration (SBA) office that offer free business counseling and services for both startups and established businesses.

Having a relationship with a banker is also essential. You’d be amazed at what your bank has to offer. Whether your business is large or small, a banker can help provide general consultation on ways to help grow your business. While some new businesses don’t initially qualify for lending because of lack of collateral or poor credit history, most banks do offer other business products (like checking accounts), services (like overdraft protection) and tools (like online banking) to help new business owners better run their business.

My local bank became a great resource and provided me free tools and information to help me manage my business. For instance, my bank connected me with community agencies specializing in small business development. In fact, this led to a full-time employment opportunity with the NAACP Community Development Resource Center in Richmond, Va., where I was able to pursue my passion for helping individuals and families achieve financial success.

Some of the best advice I ever received was to make sure I never comingle my personal and business finances. When you’re just getting started, it’s typical to use your personal accounts for business expenses. However, establishing accounts in the name of your business creates a clearer financial picture, allowing you to more easily track and manage business expenses. It also helps lenders and investors when making decisions regarding financing and investments.

Last but certainly not least, make it official. African Americans are infamous for “side hustles,” and finding ways to earn extra income beyond your regular nine-to-five is generally encouraged. If you find yourself with a profitable business venture that is marketable and has the potential for long-term success, go ahead and file the appropriate paperwork to legally establish your business. This could create opportunities to grow your business and increase revenue by providing access to bank and government financing options, as well as other resources.

Long story short, over several years my business grew to serve over 100 clients and I was able to sell it and move on to other career aspirations. I know that this success came from careful planning and management and a willingness to seek advice. I also gained quite a few gems of wisdom as a small business owner that continue to benefit me today:

• Good service breaks down barriers.
• Follow through on what you promise.
• Deliver your best.
• Network and seek guidance – no matter how much you think you know, there is always something new to learn.
• Regardless of whether you work for a company or are self-employed, leverage the skills you have to capitalize on opportunities.

For free tips, tools and resources to help you reach your entrepreneurial dreams, visit the Wells Fargo Business Insights Resource Center at wellsfargobusinessinsights.com. This site offers an extensive library of expert advice, videos, podcasts, articles and more to help manage and grow your business – regardless of the stage.

Michelle Thornhill is senior vice president, Diverse Segments for Wells Fargo & Company. Visit www.wellsfargo.com/aspirations for more information.

 This article has been prepared for informational purposes only. The accuracy and completeness of this information is not guaranteed and is subject to change. Since each individual’s financial situation is unique, you need to review your financial objectives to determine which approaches might work best for you. 

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

This financial tip is sponsored by Wells Fargo. Here’s Michelle Thornhill.

Along with stocks and bonds, real estate is one of the most common forms of investments. There are various types of investment real estate. They include residential, commercial, industrial, retail and mixed-use. Profits are generated in numerous ways. One is when the real estate appreciates. That means the value of the property has increased. You receive cash flow income when you collect money in the form of rent. You receive commission income from buying or selling property and ancillary income is earned when additional ways to make a profit are developed within the property. Providing coin laundry services inside an apartment building is an example of this kind of profit. If you’re interested in real estate investing, there are many lending options available to consider.

For more financial tips and information, visit wellsfargo.com/mortgage  

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

As you prepare to buy a home, you may be applying for financing.  Consider your current and future financial situation when deciding how much you can afford in a mortgage payment.   Think about the type of loan you may want. Are you comfortable with an adjustable interest rate or do you prefer a fixed rate?

Although adjustable interest rates tend to be lower, you might be more comfortable with a mortgage payment that is stable and predictable, as with a fixed interest rate.  Take into consideration how you will be using the loan.  Someone buying a fixer-upper might need a different loan than someone buying a newly constructed home.  Wells Fargo’s Home Loan Workbench is an online tool that can help you find the right mortgage to fit your needs.  You can compare loan scenarios and request a free consultation.

For more financial tips and information, visit wellsfargo.com/mortgage.         

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

This financial tip is sponsored by Wells Fargo. Here’s Michelle Thornhill.

Buying a home is the largest investment that most people make. June was National Homeownership Month, and Wells Fargo wants to share some helpful tips for first-time homebuyers. First, start saving for your down payment. Second, be mindful that there will be other home-related costs in addition to the mortgage payment. You will need to be financially prepared for home upkeep costs, property taxes, homeowners insurance and necessary expenses. Third, get pre-approved for your home loan before you start shopping. It will help you to know how much you can afford and will ease the closing process. Fourth, avoid taking on new debt, lenders consider how much money you owe compared to how much money you earn when determining loan approvals and amounts. Join us next week as we cover how to select the right home loan.

For more financial tips and information, visit wellsfargo.com/mortgage

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

This financial tip has been sponsored by Wells Fargo. Here’s Michelle Thornhill.

The old phrase, “it takes money to make money” is one that still applies when opening or running a small business. There are many options out there for those looking for ways to finance their businesses.

One option is to open up a Small Business line of credit. Wells Fargo offers BusinessLine®, which allows customers to access up to $100,000 for business purposes quickly and conveniently. Business lines of credit are best used for short-term purchases. Another option is an SBA, or Small Business Administration loan. SBA loans come in a variety of options to suit your needs so you can decide which type of financing would be right for you. Other alternatives include applying for a Small Business government grant, enlisting investors, or seeking a financial partner. Try to strike a balance and keep a close eye on your budget and cash flow so that you know which option is best for you to finance and grow your small business.

One last tip is to develop a strong working relationship with your banker or lender.

The more they know about you and your business, the better they can advise and assist you. Join us next week as we discuss tips on how to prepare for home ownership.

For more tips and information, visit wellsfargo.com.

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

Michelle Thornhill will provide personal finance tips to get you and your family on the right track when it comes to money management. This financial tip is sponsored by Wells Fargo.  Here’s Michelle Thornhill.

Launching a business is a huge accomplishment if done successfully. For many business owners, once they’ve gotten over that hump, the next thing they want to do is find ways to make their businesses grow. One of the first things you can do is take inventory of ways in which you can improve from within.
The most common areas of small business growth are increasing the number of customers, increasing the average value of a transaction, or increasing the number of times your customers buy each year. If you need assistance, come in and meet with a Wells Fargo banker for a free business financial review. Our
bankers can help you evaluate your business, give you financial guidance and share a variety of financial products and services that can help keep your business growing.

For more tips and information, visit wellsfargobusinessinsights.com

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

Michelle Thornhill will provide personal finance tips to get you and your family on the right track when it comes to money management. This financial tip is sponsored by Wells Fargo.  Here’s Michelle Thornhill.

When planning to start your own business, your personal finances play a big part in its launch.  Most new businesses need seed money to get off the ground which is typically done with loans.  In order to get a loan, your personal finances come into play as proof of your personal guarantee.  In order to increase your chances of obtaining a loan, check your credit score.  If it can be improved, work on improving it before you pitch your business idea to a bank.  Further, once you get your business started, open up a business checking and savings account so that you’re not using personal finances for your business.  Wells Fargo offers business banking with features and solutions that help keep track of your cash flow and meet your financial needs.

For more tips and information, visit wellsfargobusinessinsights.com.

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

Michelle Thornhill will provide personal finance tips to get you and your family on the right track when it comes to money management. This financial tip is sponsored by Wells Fargo.  Here’s Michelle Thornhill.

Getting a start in the world of entrepreneurship can be risky, but those risks can garner great rewards.

One of the first things you should prepare is a business plan. The Small Business Administration or your local Small Business Development center
can help you create one. Your plan should include the overall business concept with your priority goals and strategies for success clearly defined, as well as a vision statement describing the business you want to create, the services you will be providing, the customers you plan to cater to, and an analysis of your industry and the competition.

Even when the economy is strong, it is good practice to have a plan in case there is a downturn. Having a solid plan, strong work-ethic, and positive outlook greatly increases your chances of entrepreneurial success.

For more tips and information, visit wellsfargobusinessinsights.com.

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

Michelle Thornhill will provide personal finance tips to get you and your family on the right track when it comes to money management. This financial tip is sponsored by Wells Fargo.  Here’s Michelle Thornhill.

For business owners, keeping track of business finances can sometimes be the most daunting part of the job. There are helpful tools geared specifically for small-business owners that will allow you to make your bookkeeping as seamless as possible.

Business checking accounts offer features like business bill pay and direct pay, allowing you to make next-day payments to vendors and employees; and online foreign exchanges for those who do international business. Wells Fargo Business Banking offers all of that and more. If you use a financial management tool like Quiken or Quickbooks, Wells Fargo Business Online Banking enables you to perform transactions through that software.

Creating invoices and receiving payments has also been made easier through Online Invoicing. Online tools like these offer business owners ease and accuracy for managing their finances.

For more tips and information, visit wellsfargobusinessinsights.com.

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

Michelle Thornhill will provide personal finance tips to get you and your family on the right track when it comes to money management. This financial tip is sponsored by Wells Fargo.  Here’s Michelle Thornhill.

Increase your child’s financial education by teaching them about saving and budgeting. If you have young children, one way to encourage saving would be to give them their allowance in small bills.

For example, if they earn $5 per week, pay them with five $1 bills and encourage them to save $1 each week. Or, use the things that they want, such as new clothes or toys, as an incentive. Let them participate in saving up for it and use posters, dry erase boards, or other visual aids to track their progress making it more fun and engaging for them.

Savings Quest, a fun game that teaches budgeting and saving for kids, is available to play at: www.mysavingsquest.com. Bringing your kids into the bank with you and allowing them to participate in opening their own savings accounts is another great way to keep them engaged. Wells Fargo also offers a savings club program designed to reward children ages 5 through 12 for saving.

This wraps our monthly series on teaching children how to be more savvy about their money. Join us next week as we explore strategies to start, grow and maintain your own business.

For more tips and information, visit wellsfargo.com/aspirations.