Read

CONSULTING, LIFESTYLE, Marketing

7 Tips For Women Starting A Business

7 Tips for Women Who Want to Start a Business

Some savvy advice on starting your own business later in life.
Some exerpts from

More and more women I know are starting their own businesses these days — often doing so by switching careers in midlife.

It’s a certifiable trend. “Women are becoming more aware of the opportunities for entrepreneurship in their lives,” Susan Duffy, executive director of the Center for Women’s Entrepreneurial Leadership at Babson College told AP. “It’s becoming more of an option for a career move than it ever has been in the past.”

Female-Owned Companies Flourish

And the data on female entrepreneurship bears this out. The number of new women-owned firms launched each day has doubled over the past three years, according to the 2014 American Express OPEN State of Women-Owned Business report. In fact, the report says, four in 10 new firms are started by women.

That’s all well and good, but what I found troubling in the report was that the average size and revenues of women-owned firms has barely budged since 1997. Back then, the average woman-owned firm had one employee and $151,129 in revenues. Seventeen years later, the average woman-owned firm employs one employee and generates $155,267 in revenues.

Not so good.

Why Women-Owned Firms Haven’t Expanded

One possible reason for the stall: Female entrepreneurs are more likely to launch their businesses using mostly or solely their own savings, according to a National Women’s Business Council report.

To get savvy financing advice for women who’d like to start or grow their businesses, I turned to Jeanne Sullivan, co-founder of the New York City-based venture capital firm StarVest Partners and “Chief Inspiration Officer” at eProv Studio, a program that helps unleash the potential of entrepreneurs. Forbes called Sullivan one of the women VCs changing the world, grooming the next generation of female entrepreneurs.

7 Tips from a Financing Whiz

Here are seven tips from Sullivan (and one from me) for women who are keen to launch businesses and who need to attract money to their startup:

1. Hone your story. One way to get an investor or lender to open a wallet is to have the chutzpah to sell, sell, sell your vision in a snappy sales pitch. Short and sweet.

“You need one or two lines that sum up your product or service,” says Sullivan. “The key is to be able to get that company story out of your mouth in a clear, succinct, short pitch.” You’ll also want to include a cogent example of how a customer would use your product or service.

2. Know your market. To get a solid grip on the potential size of your customer base, Sullivan says, ask yourself: “How big is it? Is it crowded? What niche are you trying to serve?”

3. Be sure you can reel off your business’s current finances and financial needs. Sullivan says an investor wants you to have “the street savvy on the financial details of your business” that allows you to discuss it easily. “This is where women really screw up,” she adds.

And this may be the underlying reason why women were much less likely to have their loans approved than men, according to the National Women’s Business Council. Moreover, the council said, male founders were more than three times as likely as female founders to get equity financing through angel investors or venture capitalists.

“It’s not hard,” Sullivan says. “You can learn this stuff.” It’s basic math — adding, subtracting and percentages. If you’re uncertain about financials, she adds, learn from someone who gets it before you go into a pitch meeting.

Says Sullivan: “It’s important to be able to answer questions such as ‘What are the capital needs of the business over time? What are the gross margins? What’s your breakeven timeframe?’”

4. Don’t hesitate to ask people you know to invest. “Boys and men have been building their networks since kids — shooting basketballs, meeting for a beer and more. This is a critical skill for successful women entrepreneurs,” says Sullivan. She has a point. Men were more likely than women to tap networks of close friends and business acquaintances, according to the National Women’s Business Council report. “Women need to understand the importance of such business network building,” says Sullivan.

5. Prepare for show and tell. “If you’re selling a product, get it in the hands of early pilot customers,” says Sullivan. Then you’ll have something real to discuss with an investor. “It is very hard to get funding before you build the product,” Sullivan notes.

6. Have a strategy for hiring your team. “Outline the key people you need over the next 18 months and recruit them — knowing that they may work for you now for equity or part-time until you get some funding,” Sullivan advises.

7. Surround yourself with a useful board of advisers — a brain trust. “A dynamic board early in your company’s life adds gravitas,” Sullivan says. “Those advisers can be formidable references for you with an investor. They can guide you and they may lead you to your first customers.”

To find prospective board members, Sullivan says, tap your network of people who have experience with your type of business and invite about three to five of them to join your board. “Then, conduct either virtual or in-person meetings with them on a periodic basis to discuss two to three issues of key importance,” says Sullivan.

A Tip From Me:

Creating and launching your own business sounds romantic and perfect….but, be prepared to work harder than you’ve ever worked in your life. It’s an around the clock lifestyle with huge rewards and experiences!

48 Comments

  1. quest bars cheap

    August 23, 2019 at 9:32 pm

    Do you have a spam issue on this website; I also
    am a blogger, and I was wondering your situation; many of us
    have developed some nice procedures and we are looking to swap techniques with other folks, be sure
    to shoot me an email if interested.

  2. descargar facebook

    August 18, 2019 at 12:24 pm

    Do you mind if I quote a few of your articles as long as I provide credit
    and sources back to your site? My blog site is in the
    exact same area of interest as yours and my visitors would
    certainly benefit from some of the information you present here.
    Please let me know if this okay with you. Thank you!

  3. descargar facebook

    August 18, 2019 at 6:30 am

    Good day! I know this is kinda off topic however , I’d figured I’d ask.
    Would you be interested in exchanging links
    or maybe guest authoring a blog post or vice-versa?
    My site goes over a lot of the same subjects as yours and
    I feel we could greatly benefit from each other. If you might be interested feel free
    to shoot me an email. I look forward to hearing from you!

    Great blog by the way!

  4. Rosanna

    August 14, 2019 at 8:58 am

    Terrie,
    Thank you! The show of support really makes my day. I appreciate you being a reader and taking the time to comment.
    Rosanna

  5. plenty of fish dating site

    August 14, 2019 at 5:38 am

    For the reason that the admin of this web page is working, no hesitation very quickly it will
    be renowned, due to its quality contents.

  6. plenty of fish dating site

    August 13, 2019 at 9:02 pm

    Asking questions are actually nice thing if you are not understanding something entirely, however this paragraph presents fastidious understanding yet.

  7. plenty of fish https://natalielise.tumblr.com

    August 1, 2019 at 3:50 am

    With havin so much content do you ever run into any problems of plagorism or copyright infringement?

    My site has a lot of unique content I’ve either written myself or outsourced but it seems a lot of it is popping it up all over the web without my permission. Do
    you know any solutions to help reduce content from being stolen? I’d genuinely appreciate it.

    natalielise plenty of fish

  8. plenty of fish

    August 1, 2019 at 2:23 am

    Pretty nice post. I just stumbled upon your weblog and wished to say that I have truly enjoyed surfing around
    your blog posts. In any case I will be subscribing to your feed and I hope you write again very soon!

Leave a Reply