Watch Your Money: Expert Advice for This Entrepreneur for Setting Up a Business Budget | New
Location: Houston via New Orleans
Occupation: Owner of CosignedByGod Apparel and Christian PR Group
Salary: She said she generated six figures but needed help determining a paycheck.
Money transfer : Determine how to budget for your business, including paying yourself a salary. She is also interested in business credit cards.
Self-proclaimed serial entrepreneur Tianna Jenkins took off when she created the streetwear clothing line CosignedByGod in July 2021.
CosignedbyGod messaging, street-savvy hoodies, bucket hats and t-shirts resonated with a diverse set: secular singer and rapper Jidenna wore a t-shirt, and Forbes.com ran an article about the brand .
“Branding is for everyone,” said the Houston resident, who started CosignedByGod to motivate herself after her two-and-a-half-year marriage dissolved.
Now, after generating six figures from the venture, the 28-year-old Hurricane Katrina survivor and New Orleans native wants to launch a luxury fashion line for CosignedByGod. The goal is to have high-end, personalized CosignedByGod looks for award shows and other special occasions. She is also starting a PR group CosignedByGod to help budding entrepreneurs position their brands.
“I love helping people and connecting with people,” said Jenkins, who previously provided consulting services to entrepreneurs finding suppliers for their businesses.
With his current and future business plans, Jenkins must organize his finances.
“How can I manage my personal finances while making money from my businesses so that I can separate personal and business needs? said Jenkins, who also wants a business credit card.
Jenkins has $24,000 in student loans from the Art Institute of Houston, which is part of a chain of for-profit universities controlled by the US Department of Education. Jenkins may be able to have its loans forgiven under the department’s Borrower Defense Program, which provides loan relief if a college misleads its students for enrollment purposes or commits in other shady tactics.
The rent for her two-bedroom apartment is $1,400 per month. His car, a Hyundai bought at auction, is reimbursed.
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Jenkins splurges on newspapers, a habit that costs him up to $200 a month. “I write down my goals and I write letters to God about how I feel,” said Jenkins, who runs an IG page, Reminders for Black Girls, full of affirmations for emotional healing. “I have a journal dedicated to business projects.”
Jenkins takes her glamor seriously, spending $100 on silk presses and $84 on coffin nail manicures. Jenkins treats herself to Derek Arnell’s Urban Aesthetics, spending $150 on her blueberry glow booster, white honey cream cleanser, body oil and other items.
Food-wise, street tacos are his guilty pleasure and cost $3 each from his favorite food truck.
Jenna Van LeeuwenCFP, a director at Aligning Wealth in Jersey City, New Jersey, says Jenkins should consider the costs of running her business, what’s needed for growth and what she needs to set aside for income payments. quarterly taxes.
“What does she need to save to be able to handle larger amounts of inventory or to be able to do more marketing?” asks VanLeeuwen. “Does she need to save so she can add staff in the future? »
For personal finances, it’s helpful for entrepreneurs like Jenkins to create a “target budget” for essential expenses, fun expenses, and long-term goals like saving for retirement or buying a home.
Next, entrepreneurs should compare their budget to their industry standards for profit margins.
“Then you’ll know if you’re relatively on track or if you need to adjust by increasing your income or cutting your expenses,” said VanLeeuwen, whose firm specializes in serving business owners.
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Jenkins should discuss with an accountant how the funds should be disbursed, likely a monthly or bi-weekly paycheck, then annual and quarterly distributions, VanLeeuwen said.
An example budget for Jenkins, according to VanLeeuwen, could be:
20% for marketing and future expenses
- Pay $5,000 to check your bills
- Pay $2,000 to play money accounts for other expenses
- Save $500 for retirement
- Save $500 on a home
When distributing profits to his personal account:
- Save 50% for retirement and 50% for a home
James D. KinneyCFP® and owner of Financial Pathway Advisors in Bridgewater, New Jersey, co-founded a successful apparel industry business in 1991 which he eventually sold.
Instead of prioritizing getting a business credit card, Jenkins should consider getting a credit card from a local bank with strong business lending operations, Kinney said.
Financing can get tricky when dealing with overseas suppliers – the garment industry routinely sources overseas. Building a relationship with a bank with a global footprint will facilitate its growth, he said. Kinney said you should only use credit cards for routine transactional expenses rather than buying inventory.
“Lines of credit are more favorable tools for financing inventory,” Kinney said.
Natalie P. McNeal is the author of “The Frugalista Files: How a Woman Got Out of Debt Without Giving Up the Fabulous Life!”