It Takes More Than Cash to Start Your Own Business
Fairfield County Business Journal
Tips that will help you to do it right
By: Mercedes Rueda
You go out every day to work, knowing the responsibility that is on your back: as a head of the family, single-head of household, or as an independent woman who has to afford all her monthly financial obligations.
However, for a while, you have been thinking about an idea, a dream perhaps, that would allow you to reach your ultimate goal: to have your own business.
Well, you are not alone. In fact, recent studies show that women are initiating their businesses at twice the rate of men (Center for Women's Business Research, July, 2004), and the number of women-owned businesses in the top 50 metropolitan statistical areas (MSAs) continues to grow faster than the economy in general, employing 9.5 million people and generating $1.3 trillion in annual sales (Center for Women's Business Research, September, 2004).
In Connecticut, according to the U.S. Department of Labor, Bureau of Labor Statistics, self-employed women represented in 2002 more than 35% of self-employed workers in the state. Women-owned businesses totaled 72,400, generating $9.3 billion in revenues in 1997. As of 2004, of the estimated 118,583 privately-held firms in Connecticut, 41% correspond to businesses where 50% or more of them are women-owned (Center for Women's Business Research, with data provided by the U.S. Census Bureau, 2004).
The above shows that owning a business is a very viable option for women who want to become financially independent and also boost self-confidence. Everyone knows you need money to start a business; but it takes more than money to make that business idea a success. There are many other aspects that you will have to take into account in order to achieve your goal. Fran Pastore, CEO of The Women's Business Development Center based in Stamford, suggests the following tips to help you meet the challenges of entrepreneurship:
- Capitalize what you are good at. If you are a journalist, don't open a restaurant! Take advantage of your knowledge and use your expertise in a specific field to apply it in your own business.
- Have passion for what you do! What you do with love, always has a good outcome.
- Be prepared to work 24/7. Go out every day and make something happen. Keep the sources open. Make relationships. Be always willing to give 110% of yourself to make your business work.
- Get involved in the local community. Find out what you like to do and get involved. If, for example, you love children, volunteer at the library or a hospital. This will allow you to help the community being part of an association that, probably, in the future, will represent you also a good business opportunity.
- Have patience. This is the most challenging aspect. Generally, it takes about five years for a business to have stable revenue. One way you can "survive" through this is bartering. It's also recommended to keep a steady flow of income until you see real results.
- Be gracious. Anytime somebody does something for you, demonstrate your gratitude. Send a thank-you note to that person. Give her/him a call. After a meeting, follow-up with people you met, and invite them to a cup of coffee. Be your own PR person. They might become good friends, and perhaps be helpful in the future.
- Accept your limitations. Get to know yourself well enough to know what you can really do. Identify your strongest and abilities and your weaknesses. Seek help where you need it most.
- Financing. If you need financial support, Connecticut offers several sources for lending opportunities. Commercial bank lenders and federal lenders: the Small Business Administration (SBA) and Microloan and Investment in Microentrepreneurs Programs.
- Get Training. Knowledge is critical! A study released in August by the Center for Women's Business Research, showed that women with business training are more likely to achieve business success faster rate (2.7, being 4 the fastest growth). They reported a substantial increase in their key business skills, like the ability to describe business competition (4.2, with 5 as the highest rating). Courses, workshops, and mentoring will help you strengthen your skills and to learn how to apply them to your own business. In the state of Connecticut there are several resources available for entrepreneurs - like the Women's Business Development Center (WBDC) (www.ctwbdc.org), which offers low-cost, short and long-term training, counseling and technical assistance to women who are engaged in starting or operating a small business, especially if they are economically and socially disadvantaged. Registration is open for Fall programs.
By starting your own business, you will not just initiate an exciting and motivating adventure that could provide the economic independence and flexibility you've always wanted, but you could also generate more employment and development within your community. It's worth it.
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