The women of today are not the shy, timid creatures they once used to be. Now women are more into running small and medium businesses as well as outrunning men in almost all fields of life. Almost 50% of new businesses registered recently are being managed by women singlehandedly.
Women entrepreneurs are not only shifting from jobs and running businesses but are also breaking stereotypes. They are not only opening up new salons and boutiques but also investing and managing small scale construction companies and technology firms. If you are thinking of trying your hand at running your very own small business, here are the 5 golden tips that every woman entrepreneur should follow religiously.
Remain In Your Area of Expertise
Just because you hear from someone that running a certain business is profitable doesn’t mean you go for it without giving it a second thought. When it comes to doing business, being level headed and rational is very important. Take some time to figure out your skill set and your area of expertise so that you can invest in a business startup in which you can put those skills to use. For instance, no matter how good your artistic skills are, but if you are not good with numbers and other mathematical subjects, then becoming an architect is out of question.
Don’t Lose Yourself in the Legalities
Did you know that most women tend to freak out about the legalities involved in registering a business due to which they give up on the whole idea of becoming an entrepreneur? The best way to avoid delving into the legalities is to opt for starting a sole proprietor business since it has relaxed policies and the least number of legal formalities to be fulfilled. But it is important to fill out a few forms and legal documents in order to acquire the ‘limited liability’ status which means your personal assets will be separated from your business assets.
Having the Adequate Amount of Capital
You may have the perfect idea of starting a new business but if you do not have enough capital, the whole idea of starting your own business becomes moot. Before you pay attention to any other aspect of starting a new business, focus on raising the adequate amount of seed capital for funding a new business. The reason why paying due attention to funding is imperative is because most service rendering business fizzle out in the initial stages due to undercapitalization.
The truth behind why service based businesses have trouble with raising funds is because there are no fixed costs in the business as compared to manufacturing start ups. On the other hand, some new entrepreneurs accumulated excessive debt by having sanctioned galactic amounts of loan which makes the repayment aspect extremely difficult. Excessive capital and undercapitalization both affect a new business startup negatively and therefore, it is important to come up with an amount of capital that is balanced and repayable within 5 years or so.
These are some of the important points that female entrepreneurs must keep in mind in order to succeed in the corporate world. Remember that the business world may be male dominated but women of today are well equipped with all the right skills and opportunities to take over the world of business by storm.