Money Mindset, Capital Readiness, and the Courage to Take the Risk

Many entrepreneurs have a love-hate relationship with money. We love to make it—but we don't always love talking about it.

I know this firsthand. I was once an entrepreneur who could make money but couldn't hold onto it. I remember thinking, "I had a great month, so where did all the money go?" What I've come to understand is this: my relationship with money was shaped long before I ever started a business.

Growing up, we didn't talk about wealth building, investing, or financial strategies. What we did talk about was the grind—the importance of working hard and being the best at what you do. That mindset helped me make money, but not keep it.

Empower yourself with the knowledge that money has a language. Once you learn to speak it, you'll find yourself in control and confident, no longer lost in translation and frustrated.

1. Our Feelings About Money Shape Our Financial Behavior

My early feelings about money were simple: I needed to make it to escape poverty. That belief drove me into the corporate world, where I climbed the proverbial corporate ladder, earned six figures, and built a nice stack of corporate stock. But over time, I realized something: the money was costing me my health, creativity, and time.

That's when my perspective shifted. I no longer saw money just as a way to survive; it became a pathway to freedom. I walked away from a six-figure salary and corporate stock to launch my own consulting business in the middle of the pandemic. Within a year, I replaced my salary, gained flexibility, and even had my former employer as one of my clients.

But success doesn't erase poor money habits. After my first big year in business, I realized I had spent $20,000 on things that didn't matter. These were not investments in my business or personal growth, but rather frivolous expenses that didn't contribute to my long-term success. I had freedom—but freedom without discipline is just a one-way ticket back to the struggle.

That moment was a turning point. My mindset shifted again. I began to see money not just as freedom, but as a partner—one that, if treated right, will stay loyal and help build a legacy. If neglected, though, it disappears like trying to catch the wind.

2. The Language of Money: Money Goes Where Money Grows

If our feelings about money shape our behaviors, then understanding the language of money shapes our growth.

The truth is simple: money goes where money grows. This means that money is attracted to opportunities for growth and expansion. If you can demonstrate that your business is a fertile ground for financial growth, you'll find it easier to secure funding and attract investors.

For entrepreneurs, that means being capital ready, prepared to secure funding that helps your business grow. Capital readiness isn't just about needing money; it's about being able to answer critical questions:

• How much funding do you need?
• Why do you need it?
• What is your plan to repay debt or handle setbacks?
• Who will vouch for your business (through your credit, financial documents, credibility, and banker relationships)?

Here's the reality: if your financial documents show year-over-year losses, you're not speaking the language of money. And if you're working with a tax preparer who only focuses on reducing your tax bill, you may be unintentionally undermining your ability to secure funding.

Money flows where it sees growth. That's why your banker relationship is critical. Your banker should know your vision, and you should be able to call them directly. They can provide valuable insights and advice, and if they don't call back, find a banker who does. A supportive and responsive banker can be a key ally in your financial journey.

By aligning your financial and operational strategies and creating a clear roadmap for growth, I've seen businesses go from making $20K annually to $500K in just three years. This is a testament to the potential for growth and success that lies within your grasp.

One of the most powerful tools in that journey is forecasting. Think of it as your financial vision board—a 12-month outlook on what you expect to earn, spend, and invest. Forecasting not only shows you where your money is going but also when cash flow might get tight, so that you can plan. If you're new to forecasting or struggle with understanding the concept of business finance, the Arizona CDFI Network is a great place to start and connect with local CDFI leaders to help improve your financial acumen.

3. Take the Risk or Lose the Chance

My motto has always been: Take the risk or lose the chance. Let this mantra motivate you and fuel your determination to seize every opportunity that comes your way. If you are new to risk-taking, consider modifying this to "Take Strategic Risk or Lose the Chance". As your tolerance and understanding of risk grow, you can move forward with confidence because you know that any risk you take will have a strategy behind it.

Being an entrepreneur is risky. Every day you get up, you are betting on yourself, overcoming fear, doubt, and the opinions of others. And still, you move forward. That's the spirit of being capital-ready.

Being honest with a banker about your financial situation is a risk. Asking what it takes to qualify for funding is a risk. Choosing to educate yourself about money instead of relying on a predatory lender is a risk. Speaking about your business financials and credit history requires vulnerability and courage - but you can do this. Your business's growth depends on it.

But here's the truth: I've seen business owners who took those risks succeed. It didn't always happen overnight, but with time, planning, and a new mindset about money, they built businesses that were stronger, more sustainable, and more impactful.

Because at the end of the day, if your business isn't growing, it is speaking the language of money?

A Challenge for You

So here's my challenge: reflect on your relationship with money. What do you need to change to see money differently?

And don't stop there, take action. Visit the AZ CDFI Network and download our Capital Readiness Playbook (if it helps you, share it with a friend or fellow entrepreneur), schedule a coffee or lunch meeting with your banker, or identify one thing you can do this week to shift your money mindset.

In closing, remember this: Your money mindset shapes your hustle, the language of money fuels your growth, and having the courage to act is what will take your business to the next level.