Women-owned businesses still make up a small portion of all companies, but the percentage is growing. If you want to join the increasing number of female entrepreneurs, you should consider starting a business.
You can follow many of the standard steps, but there are some special considerations to make. That way, you can balance your new business with your current life.
Find the Right Business Idea
First, you need to come up with the right business idea. Of course, this is important for all founders, but it’s especially crucial for female entrepreneurs who have other obligations.
A single woman with no kids will have more flexibility than a wife and mother. So as you brainstorm business ideas, consider if you’ll be able to work that business into your current schedule.
If you’re busy, you may want to start an online business that you can run anywhere and anytime. That way, you can work after you put your kids to bed or when they take naps.
On the other hand, maybe you have a lot of free time, so you start a business that you run during business hours. Both options can work, but it depends on your current schedule.
Connect With Other Female Entrepreneurs
It would help connect with other female entrepreneurs as you start your small business. You can use a directory to find other female-owned businesses in your area.
That way, you can meet the owners to see what they’re doing and if they’re successful. Networking can help you learn about running a business, and it can help you get more clients and customers.
Maybe you want to start a business selling branding services. You look for another woman who owns a web design business, so you decide to partner up to refer clients to the other company.
Conduct Market Research
Before launching, one of the essential business tips to follow is to conduct market research. Even if you have a good idea, you need to validate it before spending time and money on it.
You can ask fellow female entrepreneurs if there are any gaps in the market. Maybe you find a way to help other women who own businesses, so you ask them what problems they have.
If you want to help another type of person, you can use the internet to research. Start with Google to see how many people search for a specific topic.
You can also use Facebook groups and other forums to see what people ask. That research will help you determine if your idea will make for a viable business.
Determine How You’ll Fund the Business
It would be best if you also thought about funding for small businesses. The simplest way to fund a business is to use your own money from your savings account or a day job.
Another option is to look for investors, but that means you’ll usually have to give up equity. However, if you’re comfortable with debt, small business loans can be useful for funding your new business.
There are even small business grants specifically for women. Grants are excellent because you don’t have to give up equity, and you don’t have to pay back that money.
Write a Business Plan
If you want to get outside funding, you’ll need to write a business plan. The plan can show investors and lenders how you plan to use the money, and they can see your financial projections.
Even if you don’t need outside funding now, it helps to have a business plan if you need money later. Plus, writing a business plan enables you to keep yourself on track.
If you ever wonder what to do to grow your business, look at your business plan. It will show you your goals and projections, so you can figure out how to grow.
Select a Business Structure
Next, you should compare different business structures, such as sole proprietorships, LLCs, and corporations. A sole proprietorship is easy to start, and you don’t need to file paperwork.
However, you also don’t have any legal separation between yourself and your business. A Limited Liability Company (LLC) is a good alternative that does protect legal protection of your assets in case someone comes after your company.
Corporations are more complex, but they allow you to sell stocks. However, they also can incur more taxes since you’ll pay taxes on the business as well as your income.
Set Up Your Workspace
Once you get everything in order, you’re ready to set up your workspace to start your small business. If you’re starting a company that you plan to run online, you may need a small home office.
However, if you want to start a brick-and-mortar store or hire employees, you might need to lease a space. Either way, think about what you need and where you want to work.
Then, you can get the money you need for a lease if you want to go that route. On the other hand, if you plan to work at home, you can take time to set up a desk and give yourself a comfortable place to work.
Obtain and Maintain Licenses
Depending on your industry and location, you may need a business license. Business owners that need rights include anyone offering a professional service, from accounting and law to cosmetology.
You may also need a license if your city or state requires it, even if you don’t offer a professional service. Be sure to get these licenses before you launch your business.
Along with a license, you may need to get an employer identification number (EIN) for taxes. That way, you can separate your business from your personal life.
If you want, you can even get a women-owned business certification. That can help you attract customers who want to support female-owned businesses.
Starting a Business Doesn’t Have to Be Scary
Female entrepreneurs have an excellent opportunity to work for themselves. However, starting a business can seem impossible, especially if you have kids and a household to care for.
Luckily, you can take steps to start a successful business as a woman. But, first, network with other female entrepreneurs and follow the standard steps to start a viable business.
Do you want to connect with other women business owners? Become a member today.