According to American Express’ 2019 State of Women-Owned Business Report, there are an average of 1,817 businesses founded every day in the United States by female entrepreneurs, making roughly 40% of all businesses in the country owned by women. Yet, just 12% of these businesses average over $100,000 annually, and a mere 2% generate over $1 million, raising the question of “how can we better support women-owned businesses in today’s economy?”
As Cate Luzio states in her new 2-hour workshop “Business Plan Bootcamp” — “Creating opportunities to accelerate growth with access to better tools, education, and networks can help these business owners create jobs, build wealth, and grow the economy.”
Start with a Plan
As with any endeavor in life, putting a well-thought-out plan in place is crucial, which should be more than just an idea. A step-by-step process must be laid out in order to see your overall strategy throughout each milestone achieved. This can, and likely will, however, change as your business grows. The key is having a larger set goal in mind and taking every business decision made into consideration when thinking of that goal.
Growth cannot be achieved without building a network of connections. This is true for both professional partners and customers, and results in leads for nearly every aspect of your business. For example, potential investors or marketing and advertising experts. No entrepreneur is an island, nor do they have to be. Tap your professional network for both assistance and education throughout your entrepreneurial journey.
General education on investing, funding, and capital is essential for a new business owner. The first step is understanding the type of funding your business needs based on projections first created in your business plan. Female founders, in particular, have less access to venture capital, unfortunately. However, venture funding is not always a necessity. Explore any existing resources that might be able to assist in your funding efforts. For example, connections within your professional network, business loans or credit cards, and crowdfunding.
To say just one aspect of starting a business is the most important would be misleading. However, that being said, hiring an effective team of employees is one of the most critical components. Measure the strengths and weaknesses of yourself as well as those seeking employment. A diverse team of multi-talented individuals is the perfect recipe for growth and success within a company.
Once your business is established, the decision to scale then comes to mind. However, as stated by Luzio, scaling can look different for every entrepreneur. It can be anything from hiring your first team member to opening up a second branch in a new location. “Define your own terms, don’t let the noise drown out what you set out to create.”
Today’s economy is comprised of more women-owned businesses than ever before, which are directly resulting in economic growth, and therefore needing our support; not just for the sake of the economy, but for the success of female entrepreneurs all around the country.