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How Female Entrepreneurs Can Grow Their Businesses
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The How-To Business Book
11/20/2000
By: Priscilla Searles
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There are 9.1 million women-owned businesses in the U.S. generating more than $3.6 trillion in annual sales, according to the National Association of Women Business Owners (NAWBO). In the year 2000 women will start 40 to 50 percent of all new businesses.
The number of female-owned business is on the rise; but not all women hit the ground running when they go into business for themselves. Typically a woman in business gets so bogged down she isolates herself, not allowing sufficient time to get out there and network with people going through same thing, trying to solve the same problems. Networking is one of the key elements in making any business successful, help it grow. The first thing a woman who starts a business must do is to get out there and network with other female business owners.
Successful women build their businesses based on relationships - networking, getting to know others. They mentor one another. Women are more apt to admit to difficulties in their businesses than men, and share their problems with others. Women who know how to network will get plenty of input on business ideas and solutions.
A major networking mistake some women make is to catch up with their buddies rather than working the room at events. Women need to learn the art of networking. It's not a good networking skill to talk to the two people in the room you already know. Women need to circulate, find out a little about each business, give out business cards, build relationships.
A critical tool for a successful business is, of course, a business plan. It will drive the business, provide a means of measuring where the business is and help determine where the business is going. It's a road map to the future.
A business plan doesn't have to be encyclopedic, but it does need to address the goals and objectives of the business, a marketing plan and strategy, the target market. The business plan should be reviewed and revised annually. A plan that is written and then placed in the back of the drawer and never looked at is useless.
One of the biggest reasons business fail is lack of planning - especially lack of financial planning. Women need to get to know their banker, and this needs to be done before they go looking for money. This will help new business owners understand the entire process. In addition, larger banks can be a major resource for information helpful in starting a business or helping it to grow.
The initial approach to a bank can be intimidating, especially when you don't know what to expect. Be as organized with your ideas and plan as possible, even in the first informal visits. Financial institutions accustomed to dealing with new business owners will spot the holes and make constructive suggestions.
If female business owners wait until times are tough, they will find it hard or impossible to get financial assistance. Remember: Banks lend to people or companies who don't need money. By anticipating her business needs the entrepreneur can anticipate her financial needs and, hopefully, have established a good working relationship with her bank when things are good. You want your financial institution to help you grow. Access to credit is essential to moving forward.
Every business needs a board of directors, even an informal one. CPAs, lawyers, bankers, other business owners - all can help the business owner see where the holes are. Business owners aren't looking for a group of people who are going to tell them what to do, to give orders. What is needed is helpful observations and suggestions. It is sometimes difficult for a business owner to see where the problems are, let alone where the solutions lie.
Women can remove the highly subjective passion that typically attends owning their own business by bouncing ideas off others, especially others who have resources. Women have a talent for sharing their business problems and objectives with others, often establishing a relationship with a mentor or mentors. But women need to seek out available resources. Local chambers of commerce provide programs on numerous subjects for business owners. Many banks will also provide business customers with resource lists and peer-to peer mentoring groups along with other networking opportunities. Local colleges and business organizations, the U.S. Small Business Administration and Service Corps of Retired Executives (SCORE) offer educational programs on putting together a business plan, marketing, advertising and business computer programs.
Other organizations such as NAWBO and women's entrepreneurial groups can provide valuable information. Not to be forgotten are business tabletop shows, showcases and expos. While the female entrepreneur is out there building a resource base, she is also spreading the word about her business.
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