Women have made significant strides in business development. According to a recent Gusto report, women launched 49% of new businesses in the U.S. in 2021, a sharp increase from the 21% in 2019.
Despite being responsible for opening nearly half of new businesses in the US, women in business face unique challenges that can be difficult to navigate on their own if they don’t have a solid support system. Balancing family commitments, navigating inherent biases, and inequities in funding opportunities are just a few of the challenges that place female entrepreneurs at a disadvantage. We’ve found that implementing the following strategies can effectively help female entrepreneurs navigate these hurdles.
Building your Network
Many women start their businesses driven by passion, aiming to earn income and scale their businesses for future generations. One of the critical factors in business growth is having a strong network of individuals who can facilitate natural expansion. This network not only encompasses a robust employee base but also extends to external support systems. Getting involved in small-business groups geared towards women and collaborating with like-minded professionals can provide invaluable support and mentorship.
A pivotal decision for any business owner is determining if and when they have the capacity to expand. Building a team of professionals—including accountants, attorneys, business coaches, and financial advisors—can greatly assist in navigating the decision-making process, facilitating business growth and strategic investment. Though, this decision typically hinges on available cash flow and the owner’s aspirations for business growth. Therefore, it is crucial to establish early on whether the business will function primarily as a lifestyle venture or asset intended for future sale or generational wealth.
Acquiring Business Credit and Funding
Navigating the complexities of business credit and funding for growth can often feel daunting. Whether considering traditional credit lines, seeking outside investments, or managing cash flow, the process can be overwhelming.
Research underscores significant disparities: businesses led by women are 63% less likely to secure venture capital funding compared to their male counterparts, as highlighted by studies from Columbia Business School and London Business School. Seeking guidance from a financial advisor or an outside consultant can provide invaluable support in navigating these complexities.
Professionals who are women often bring unique perspectives and empathetic approaches to financial planning, which can result in more personalized and holistic strategies. Such professionals can also assist in evaluating the most suitable funding options aligned with personal goals, while also uncovering alternative avenues such as grants or specialized loan programs. Equally as important, they can offer insights to help manage debt effectively, ensuring sustainable growth without undue financial strain. Sometimes, another woman’s keen eye and exemplary communication skills are what you need to ensure that you fully understand your options and the implications of your decisions.
Maintaining a Healthy Work-Life Integration
Despite significant strides forward, achieving balance between family and career remains a challenge. Many women entrepreneurs postpone starting businesses until their children are older, navigating potential biases and societal expectations tied to motherhood and career breaks.
To tackle these challenges, building a robust support network is crucial. Success in both business and family life isn’t solely reliant on one person—whether man or woman. It requires a team of advisers, employees, business networks, family members, and other supportive figures to fill gaps that cannot be managed alone. Outsourcing where possible and asking for help is a sign of strength, not weakness.
Finally, prioritizing personal well-being is important. Maintaining good mental health is not only beneficial for sustaining a successful business but also crucial for a fulfilling home life. Establishing clear boundaries between work and home life, and utilizing available resources are best practices. Taking intentional breaks and caring for oneself are integral parts of success.
How Heritage Can Support Your Journey
At Heritage Wealth Advisors, we are dedicated to empowering women entrepreneurs to navigate the specific financial challenges they face, through tailored financial strategies. By partnering with us, you can benefit from our expertise in business advisory, investment management, financial planning, and general wealth management. We strive to help you achieve your personal and business goals, ensuring sustainable success and financial stability for years to come. Join hands with our team of financial advisors who are dedicated to empowering women.
