April is National Financial Literacy Awareness month, a time dedicated to empowering individuals through financial education.
Brown County is a hub for small businesses. Brett Rice a financial advisor at CoreVision Financial Group told the Democrat that financial literacy empowers small business owners to better understand their income statements, balance sheets and cash flow statements. It also helps them to make more informed decisions regarding pricing, budgeting, investing and expansion strategies.
“Financial literacy is not just a buzzword; it’s an important aspect for the success and sustainability of any business, especially small ones,” Rice said. “These businesses often operate on tight margins and face numerous challenges, making sound financial management essential for survival and growth.”
He said that it also plays a role in accessing external funding as well such as securing bank loans, applying for grants or attracting investors.
“Having a solid understanding of financial concepts and being able to present a clear financial picture instills confidence in lenders and investors,” Rice said. He added, “Financial literacy extends beyond basic accounting principles. It involves understanding tax obligations, navigating regulatory requirements, and implementing effective financial controls to prevent fraud and mismanagement.”
Rice told the Democrat that his key pieces of advice for small business owners are to prioritize education, keep accurate records, monitor your cash flow statements, set realistic financial goals for your business and seek professional advice when necessary.
A few ways that people can educate themselves on learning basic financial concepts is by attending workshops, seminars or online courses about financial management, accounting and budgeting.
Rice encourages new business owners to start small by avoiding excessive debt or overhead expenses before generating revenue and building a solid customer base. His tips also include planning for contingencies with an emergency fund and networking with fellow business owners to learn from their experiences.
Financial literacy is the cornerstone of stability. It empowers business owners to avoid risks and have confidence when taking new opportunities.
“Financial literacy is indispensable for small business owners,” Rice said. “It equips them with the knowledge and skills necessary to make sound financial decisions, manage resources effectively, and steer their businesses toward long-term success.”
