Today more and more women are starting their own businesses and becoming successful entrepreneurs. Those who have a great idea are looking to start their venture and build a successful company despite the troubling times we are currently experiencing. Yet even putting aside the current health situation, female founders will be faced with many important decisions that they will need to make. Here are a couple of key decisions that you’ll be making when as a female founder:
1. If business is for you?
Starting a business can be overwhelming, especially when you come from a nine-to-five job. You may feel pressure from people around you, and some might even tell you that it won’t work out. However, if you have an idea that you believe in then cancel that negative noise. More women are succeeding in business than ever before. In 2019, the number of newly-funded startups with female founders globally rose to 20 percent, which is double the number just a mere decade ago. If you believe you are ready, take a chance and follow your dream.
2. The field and type of business you want to have ?
Once you’ve decided that starting a business is for you, the next thing to think about is what you want it to be. There are a number of thriving female-led industries in the world right now such as the cosmetic industry and fashion industry. Women in STEM are also making headlines as more and more female-founded science and technology companies are being set up. It is best to play to your strengths and enter an industry you are comfortable operating in. This will increase your chance of making a profit as you will already have insider knowledge you can put to use.
You also need to consider the structure you want for your business, too. Most new ventures start out as a sole proprietorship, which is the simplest structure as it requires very little paperwork. But if you’re looking to establish your company as an official business, then it is a good idea to set it up as a limited liability company (LLC) as this will give you more security. Forming an LLC allows female founders like you to separate their personal assets from their business ones, while still keeping things much more flexible and less complicated compared to incorporating. There are many risks to starting a business, and with this safety net around your personal assets you will be able to take more risks in the direction your company takes.
3. How you’ll fund your business?
Another important part of business is deciding where to get capital. Some get loans, while others use their savings. If you’re more risk-averse, pitching your business to venture capitalists (VC) or investors, especially those supporting diversity, may be a good idea. If they see its potential, they might just provide the funding you need to begin your business.
After this, you might feel pressured to expand and earn a lot right away, but that shouldn’t be your focus. There are good pieces of advice out there that recommend simply striving for authenticity and quality when growing your business. Once people see its value, it will start getting traction, and profitability will follow.
4. What kind of female founder will you be?
Lastly, it’s important to plan how you will handle your business. Some make the mistake of getting caught up in small business tasks instead of focusing on the big picture. As a female founder, you have to consider building a team and delegating. A good business leader focuses on setting clear goals and objectives then sharing them with their team. Training people and guiding them to work together toward your company vision is a great investment for the growth of your business.
As a female founder, there are a lot of decisions to be made in a constantly changing business landscape. In the end, it’s all about finding a balance between what you want and what you do best, picking the right resources to turn that into something authentic and of quality, and choosing the right vision and people to share it with.