Women are starting businesses at a record pace — motivated to pursue passions, financial independence and the flexibility that eludes most traditional jobs.
(BPT) - Women are starting businesses at a record pace — motivated to pursue passions, financial independence and the flexibility that eludes most traditional jobs.
In the U.S. alone, women entrepreneurs generate $1.1 million in revenue on average across retail, professional and personal service businesses that have operated for 11 years. This stat comes from Visa’s new ‘State of Female Entrepreneurship’ report, which informed their recently announced program, She’s Next, Empowered by Visa, a global initiative to support and champion women in their efforts to grow their small businesses.
That’s powerful stuff, highlighting the important role women entrepreneurs play in the prosperity and economic development of local communities. The typical entrepreneur is 42 years old and earns nearly $110,000 in household income a year, making a profound difference in building and supporting families in the community.
Clearly, female founders are coming into their own. In fact, the Visa study found that 79 percent of American women entrepreneurs feel more empowered now than they did five years ago.
Still, key challenges exist: 73 percent say funding does not come easily, and nearly 2/3 use their own funds to get started. Assembling a good team, finding the right tools and dealing with competitors are among the biggest challenges keeping women entrepreneurs up at night.
For any entrepreneur, it can feel like there’s never enough time or resources to grow a business. To help other entrepreneurs and based on insights from the ’State of Female Entrepreneurship’ report, Visa polled four areas women entrepreneurs focus on to turbocharge success:
Find mentors: More than two-thirds said they wanted advice from fellow entrepreneurs. Relatable role models and mentors are invaluable when you’re making the leap to starting or building your own business.
Find your feet: Strategy development is critical for women starting up their own company. Assembling a good team was a challenge encountered by 37 percent of women founders. Other challenges include: finding the tools to grow and manage their business (36 percent), competition (36 percent) and growing as quickly as they need to (33 percent). Have a plan and pursue your vision.
Gather capital to invest in your business: Cash flow is the lifeblood of any business. Respondents cited profits and revenue growth as the top two priorities for improvement. Thirty-two percent of women would direct additional funding toward newer technology.
Put in overtime: When building a business, time is precious. Given the investment and high stakes that come with the territory, it comes as little surprise that a majority of women entrepreneurs (56 percent) are putting in more work hours than before they started their business.
If you’ve joined the ranks of female entrepreneurs, find support and resources by signing up for the Female Founder Collective, and visit She’s Next, Empowered by Visa where you can download and print a toolkit with tips and advice to help build and sustain your company.
How businesses access working capital has shifted, as traditional methods haven’t kept pace with the speed of business. Where can entrepreneurs turn for funding? These three alternative options may be worth considering.
(BPT) - How businesses access working capital has shifted, as traditional methods haven’t kept pace with the speed of business.
Growth is one of the biggest indicators of small business success. According to the Small Business Administration (SBA), more than 500,000 businesses have between 20 and 99 employees as of 2014. These established businesses are in the upper end of growth but have not yet met the threshold of being a medium business. In fact, 39 percent of growing companies — between three to five years old and seeking more than $100,000 — consider accessibility to capital their greatest concern. It’s during this stage businesses typically are faced with growth challenges.
Where can they turn for funding? These three alternative options may be worth considering.
1. Lines of credit
Lines of credit, provided by online lending platforms like Kabbage, offer established businesses in all industries the flexibility and convenience of accessible capital.
With Kabbage there are no fees to apply for a line of credit or annual costs to access funding. Small businesses don’t pay a thing to see for how much their business can qualify. Kabbage offers access to lines of credit up to $250,000, helping small to mid-market businesses access funding for operational costs and strategic investments like cash flow needs, purchasing specialized equipment, business expansions and launching high-growth marketing projects. There are also no obligations in how much a business is required to take. Businesses can take the amount they need from the line of credit when they need it, with no hidden fees or pre-payment penalties.
Lines of credit are faster and more flexible than traditional loans. In fact, Kabbage offers a loan application that can be finished in minutes — even through a mobile app — eliminating the time usually spent waiting in lines or filling out numerous forms.
2. Merchant cash advances
Some established businesses turn to a merchant cash advance (MCA) due to lower credit ratings, not having enough assets to provide as collateral, short-term financing needs or the flexible repayment terms.
Essentially, an MCA is an advance on future credit card payments. The cash advance is decided upon by the funding company, with the specific amount being paid back in full plus fees and interest.
With merchant cash advances, borrowers pay a set percentage of their credit card sales and make payments every time they receive credit card payments from clients.
3. Invoice factoring
Invoice factoring is another funding option established businesses use in lieu of bank loans. Factoring is the process of selling accounts receivables to a financing company for immediate cash.
Factoring helps businesses receive cash much faster than waiting for clients to pay their invoices. The financing company, known as the “factor,” pays the business the majority of the invoice upfront. Once the business receives payment from the client, they send those funds to the factor. The factor then pays the remaining percentage to the business.
Factors are more concerned with the financial health of the business’s clients rather than the business itself. These companies collect directly from a company’s clients and customers, sometimes requiring payment history validation from the business. A benefit of factoring is not assuming debt for money received; however, if clients are not creditworthy, you may not receive funding.
To maximize this growth, consider looking online at www.kabbage.com/yes to learn about and find new options that fit your business. Merchant cash advances, invoice factoring, and lines of credit are three alternative solutions that help growing businesses go beyond traditional financing methods.
Creating a business from the ground up is no small endeavor. From planning to financing to putting standard business services in place, there’s a lot to tackle. To overcome these obstacles, franchising is an ideal solution for many aspiring business owners. While it provides the advantages of business ownership, franchising also offers numerous benefits, such as these.
Build a Business Your Way
(Family Features) Creating a business from the ground up is no small endeavor. From planning to financing to putting standard business services in place, there’s a lot to tackle. All of that is in addition to operating the day-to-day business.
To overcome these obstacles, franchising is an ideal solution for many aspiring business owners. It provides the advantages of business ownership, but with the added support of a recognized brand and an established method of doing business. Partnering with a franchise like The UPS Store offers numerous benefits.
Flexibility. Opening a franchise allows you to enjoy the freedom and flexibility of making your own business decisions and being your own boss, while working toward your goals of personal and financial independence at your own pace.
Start-up resources. Getting a new business off the ground requires a wide range of activity, from site selection and lease negotiation to hiring and training staff. A franchise can help you navigate these early decisions and needs with a deep pool of experience and knowledge to help overcome the hurdles you may encounter.
Training. Even a well-educated business owner has room to learn. With a franchise, you have the opportunity to receive in-depth training in areas such as business operations, technical systems, human resources, marketing and financial management.
Networking opportunities. Connecting with other franchisees at area meetings, regional conferences and national conventions helps you stay informed of industry trends, discover new tools and resources, and develop lasting relationships with fellow franchisees. The result is a peer group that has intimate knowledge of your business model that can serve as a valuable resource as your business grows.
Product development. Part of developing your business is understanding your customers’ needs and introducing new products and solutions. As a franchise owner, you can contribute insight to the process but focus on running your business while development experts dedicate themselves to researching and innovating new products and services that can help you better serve your customers.
Marketing support. Many franchises conduct national advertising campaigns to build brand awareness, while regional efforts and local store marketing can build excitement in your market. A layered marketing plan extends the reach of your marketing budget and lends credibility to your business.
Financing assistance. Funding your franchise according to your unique goals and background can help eliminate many of the financial pitfalls that those without experience or industry expertise may encounter.
Learn more about franchising and the options available to aspiring small business owners at TheUPSStoreFranchise.com.
A Milestone Accomplishment
A focus on small business is driving big results for one national retailer. The nation’s largest franchise system of retail shipping, print and business service centers, The UPS Store, Inc., is now 5,000 locations strong.
“The UPS Store network is made up of dedicated individuals and families who are committed to serving small business owners, customers and their communities,” said Chris Adkins, vice president of franchise development for The UPS Store. “We look forward to welcoming more franchisees into our network as we continue to challenge ourselves to find new ways we can bring convenience and value to our customers.”
Over the years, the retail concept has expanded to include a range of solutions for small business owners, creating a one-stop shop for small-business support. Small business owners can find resources such as notary services, shredding, mailbox and locker rental, and, in some cases, even inventory management solutions, as well as the packing and shipping services that business and non-business customers alike can utilize.
5 Tips for Creating a Business Plan
Once you’ve settled on a business model that meets your needs, developing a business plan is an essential next step. These five tips can help you get started:
Photos courtesy of Getty Images (women with clipboard, man with open sign)SOURCE:
The UPS Store
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