Note: This article was written in 1999, but the trends continue along the same lines, making it relevant today.
Did you know the number of women owned businesses increased 89% over the past decade to an estimated 8.5 million? Or that during that time they generated $3.1 trillion in revenue, a 209% increase after adjusting for inflation? The Small Business Administration’s Office on Advocacy recently completed their Women in Business statistical report, and concludes that the projected growth rate through the year 2000 and beyond will continue to outpace the overall rate of businesses in the United States.
For those of us in business, it’s truly an exciting time. For those of us considering our own business, help can be found. Organizations such as the North Coast Small Business Develop Center (NCSBDC) and the Women Entrepreneurs Institute often sponsor entrepreneurship courses to assist budding entrepreneurs to overcome barriers and pitfalls on the road to success.
By the year 2000, it’s expected that women-owned sole proprietorships will number 7.1 million, or 35% of all sole proprietorships, an increase of 33% over the preceding decade, compared to an overall increase of 23%. The Office of Advocacy also estimates that by the year 2005, there will be 4.7 million self-employed women, an increase of 77% since 1983, along with an increase of 6% in self-employed men. More and more of us are opting to be our own bosses.
But where do you start? How do you get going so you can be part of the growing numbers of entrepreneurs and self-employed? What if you’re not sure about your business idea? Identifying and tapping into your resources is the way to start. Taking a course in entrepreneurship or business plan writing will give you the opportunity to clearly identify your business concept and what it has to offer; to research and analyze your markets, your customers and your competition; to fully develop your business plan; and to consider how much cash you need to get started and keep going.
Extensive resource materials are available from the Small Business Development Centers and the Western Entrepreneurial Network at the University of Colorado (Denver). Although it may initially seem to be a lot of work, when you take the time to research and develop the specific components of your business plan you will create the necessary foundation to start a new business or restructure an existing business for growth and expansion. And completing a business plan is essential to secure the funding you need.
A good course will help you define your dream. It will include real world experience and advice from local business owners who have successfully faced the same challenges. And along the way, you must use your networking skills to begin to build your own support network of business and financial professionals from among the other participants, speakers and the business world.
Nearly three-quarters of all women-owned firms accessed some type of credit in 1993, with one half using traditional loans and 60% using nontraditional sources. Whether you’re just starting up, or expanding an existing business, cash is still king (or queen). A good course will cover cash flow issues and financial statements, and provide some kind of access to representatives from local financial institutions who can explain available funding sources and share information about what is needed from you to access these resources. Your local SBDC will also be able to provide feedback on various aspects of your business plan. They may even have automated business plan software that can assist in putting your plan together into a professional package.
Not surprisingly, more than 60% of women-owned businesses were operated in the home when they were first established. With the use of today’s technology, and one really good idea, anyone can be “up and running” in a short time. If you or someone you know has an interest in fulfilling your own American Dream of becoming an entrepreneur, entrepreneurial training can be an inexpensive way to insure you learn how to build the foundation and network for success.
By Katie Darden
(Note: If you would like more information about local classes e-mail the Career Life Institute at info@careerlife.net,