We recently connected with Clarissa Wright and have shared our conversation below.

Clarissa, looking forward to hearing all of your stories today. Growth is exciting, but from what we’ve seen across thousands of conversations with entrepreneurs it’s also dangerous if costs aren’t watched closely – sometimes costs can grow out of control outpacing revenue growth and putting the viability of the entire business at risk. How have you managed to keep costs under control?

I’ve definitely made plenty of mistakes when it comes to finances. From overspending on salaries and not planning for fluctuating cash flow and revenue to taking out too much business loans.

If you can manage – stay away from merchant cash advances, they may help with an immediate influx of cash flow but they are cash flow guzzlers in the long run – especially if you have a daily or weekly debit.

I would stick to more short-term capital loans (2-3 years to pay back) or SBA loans which typically only need a 680 credit score to qualify and you can get a larger amount with a longer term and better interest rates.

I’m also a big advocate for applying for grants (even if they are very time consuming to apply) – it’s worth it because you don’t have to pay it back and often it gives you access to a ton of resources – ie mentors, networking, workshops to help grow your business and learn from the best of the best.

Another thing I do, is have a working google sheet where I keep track of my personal vs business expenses against monthly recurring revenue. That way I can know exactly what my break even is each month and what extra wiggle room I have to work with.

I know a lot of business owners try to use just Quick Books and manage their own expenses. But It’s wise to hire a CPA that manages that for you monthly, that way when it comes tax time, it’s much smoother for both parties involved. There are many cost effective ones with a reasonable monthly retainer, and if you find a good one, it’s worth every penny.

Last but not least, be careful with over hiring talent. It’s easy to get caught up when business is good and sometimes we get overwhelmed and need help short term but are keeping the long-term game plan in mind.

Visualize where you see your business in 5 years and draw out an organizational chart to determine really what roles you need on your team to get there.

As founders, we can do a lot, especially in the beginning, but it’s important to know when to delegate and when you’re just hiring because you don’t want to “deal with it”. Also transparency is key – when hiring – be honest with the person if this position is seasonal or could fluctuate in hours so they know what to expect.

Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers.

CNW Digital is a digital marketing agency that focuses on email and sms marketing for fashion, beauty, and luxury e-commerce brands. We’re strong believers in work smarter and not harder. So we build out automations for brands to take some of the heavy lifting off their plate so the can focus on what matters.

In the end it builds longevity and loyalty with customers, keeps them engaged and coming back as repeat customers.
We are a Klaviyo, Shopify, and PostScript partner.

We often hear about learning lessons – but just as important is unlearning lessons. Have you ever had to unlearn a lesson?

I really had to get over imposter syndrome. I still struggle sometimes. As Black, female founders we are  often underserved and don’t have access to the same resources and funding (or even network) for that matter that can really help us scale our business and level the playing field.

But it requires a lot of faith and believing in yourself and what you’re doing to really make it happen. Know that there is only one YOU and nobody can take that from you.

If you’re passionate about what you’re doing– it will show. And the business will come.

Can you open up about a time when you had a really close call with the business?

Oh gosh, this one is tough. Nobody likes to be that boss that is struggling to keep up with payroll, but unfortunately it can happen. And it has happened to me.

The business was growing so quickly, and we didn’t have the supply to keep up with the demand. Not only that I was overspending on salary and under-charging clients (because I didn’t have the heart to raise them), it was a recipe for disaster.

Before I knew it I ended up getting 3 months behind on paying one of my most loyal employees but she was also my highest paid employee. In the end it didn’t work out so smoothly but I did get her paid up. But we ended up parting ways.

One, because I simply couldn’t afford her anymore and two, too much damage had been done at that point on our part and it was not fair to her.

As a business owner – it was a huge learning lesson for me. Be transparent, always. Be honest if business is slowing down and you can’t afford the same salaries you once could. Be honest if you can’t afford a pay increase someone is asking for – instead of just saying yes to keep them happy.

Don’t be afraid to raise your prices yearly with growing inflation.

And also know it’s business, not personal. If you can’t afford someone any more – let them go. Don’t drag them along. (or tell them things are slowing down and once things pick up, you’ll reach back out.

Don’t agree to raises, without coming up with a game plan of how you can offset that raise – ie raising your prices with current clients, etc.

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