The world of entrepreneurship finances is not always easy to navigate, but there are often a unique set of issues that affect women trying to raise and manage business financing. The following 5 types of issues or “blocks” are the most common, but the solutions are easier than you might think.
- Raising Capital
Raising funds to start a business requires planning and ingenuity, and while there are plenty of successful business women, it is still more unusual for women to enter the business world as entrepreneurs. If you’re new to the financing game, it could be helpful to hire a business coach to walk you through the process of putting together a business plan and approaching lenders. Having your ducks in a row can make all the difference in taking your idea from concept to actual business.
- Keeping Budget in Check
Once financing is secured, keeping a budget is important to ensure that regular operating expenses can be met on time. Making sure that loan payments and other expenses are promptly paid, ensures that credit lines are kept open and can be increased if needed, once your business starts to grow. Good money management and business growth follow the law of attraction: money attracts money. If you have trouble with budgeting properly, a mentor can be very useful. Your local Small Business Bureau may be able to introduce someone who can help you steer clear of budgeting pitfalls.
- Calculated Risk
Starting a business can be a risky proposition, but the right risks can be very rewarding. Once you have decided on a product or service, gotten financing in place, worked through your budget planning, and things have gotten off the ground, you may want to start considering how to take your business to the next level. Here again, an experienced coach can be helpful.
- Keeping Personal Finances Secure and Separate
Applying the same control and oversight to personal finances is important, as well as keeping them separate from your business finances. Keep separate personal and business accounts, don’t overlap expenses, and pay yourself a regular income. If you work from a home office, where the line may be a bit blurrier, make sure you document and apportion overhead expenses (electric, heat, rent/mortgage) appropriately. An accountant or tax attorney should be able to help you determine the best way to apportion these expenses.
- Have Confidence in Yourself and Your Ability to Make Money
Here again the law of attraction applies. Women tend to have less confidence about their ability to make and manage money. If you are unsure of yourself, others will be as well. Do your research, hire a coach, or find a mentor, and put your best foot forward!