Obstacles for Female Business Owners

Despite the many advances that women have made in the business world there are still many obstacles standing in their way. This is especially true for the entrepreneur who is starting up her own business. None of these obstacles are insurmountable, but they should be taken into consideration when approaching the idea of starting a business.

1.      Discrimination

You wouldn’t think discrimination against women would still be an issue this far into the 21^st century. The fact remains that there are some investors and clients who still might give pause to a woman CEO. In some cases this discrimination can come from other women! This doesn’t mean that deals won’t get done with a woman in charge; it’s just that this entrenched perception is hard to shake. The good news is that the new generation of business professionals aren’t stuck in the past.  

2.      The Boy’s Club

Not every business deal goes down between the hours of 9 to 5. Relationships are fostered in all kinds of social situations like the golf country club or gym. In these cases, men gravitate towards men. It’s easy to imagine that a lot of business can be conducted over the course of 18 holes. Yes, women can play golf too but it’s an area that is dominated by men and unless you can play with the boys you won’t have that kind of direct access to potential new business relationships.

3.      The Family Issue

This is another of those entrenched perception issues. If a woman is a mother of younger children she is expected to make those children a priority. Forget the fact that she has a husband or a nanny; she’s still a “mom.” This is even more difficult to overcome with younger entrepreneurs who might start a family and require maternity leave. The truth is that ever since women have entered the workforce they have been fighting to strike a balance between work and family just as their husbands do. Hopefully, the woman business owner will have that support system in place to insure her success.

4.      Competition and Self-promotion

This is an area that could be more of a stumbling block on the part of women as opposed to an outside perception of them. Often, women have it ingrained in their psyche not to be competitive or to self-promote. However, both of those are important qualities for any successful entrepreneur. It’s important for women to move beyond “that’s how I was raised” and to recognize that the best approach to business is a level playing field. If the guys are going to be competitive, then you should as well. As for self-promotion there is nothing wrong with marketing yourself. Be proud of your accomplishments and share them with the world!

The Business Plan and why you need it

As a business owner, you have to be aware of and work with so many variables – like creating a compelling product, building a great team, generating sales and keeping your customers loyal. Writing a business plan helps you as it will guide you in understanding how your company operates. The process of writing a business plan, will help you learn how to forecast any challenges, understand what resources you would need and even manage your own company more effectively.

What does a business plan consist of?

First and foremost, when writing a business plan - you should be aware as to who your audience is. Depending if you’re pitching a VC or asking your banker for money, you should tailor the plan to what they are interested in. In general, every business plan are composed of these sections:

• Executive Summary: Placed in the front of the plan but written last, this allows the reader to quickly understand whether want to read the rest of the plan or not. It will provide them with a concise idea of what your business is, where the opportunity lies and how you plan to solve it.

• Description of Business and revenue model: This is a deeper analysis in your business. What is the problem you’re solving, how are you providing a solution, and how can the business be sustainable over the long term and make a profit.

• Industry Description: What industry are you competing in? Do you research and find out who the main competitors are and why are they failing or doing well. Present your company in a way that outlines how you plan to capture market share.

• Market Research: This is a deep analysis into defining who your customers are and whether they are interested in your product or service. By doing your market research, you may find out that your potential customers may want something else entirely.

• Operating Plan: How are you going to deliver your product or service to your customers? Make sure you account for every detail including customer service, manufacturing, sales and human resources.

• Management Team: For any business, it’s the management team that will make or break the company. Include a summary of each team member’s experience, what their responsibilities are and how they will help the company succeed.

• Financial Analysis: The most important aspect of any business plan, the financial analysis will show others if your company is going to make a profit. It will outline when you will break even and how long will it take to profitability.

Tips on a successful business plan

When you are raising money for your startup – it’s your business plan that will grab the attention of potential investors. Make sure that you have no spelling or grammar mistakes, it is printed on good quality paper, and most importantly, your financials are solid. Mistakes in your plan will make a poor impression to anyone who’s reading as they will wonder if you will make same mistakes in running your company.

As mentioned earlier, understand who the plan is for. If your plan is for your partners or employees then it would reflect more on the operations side. Likewise, a plan written for a loan officer, they will be very interested in your financial analysis. Did you make realistic projections? Will your potential sales revenue cover the loan payments over time?

Your business plan is one of the best methods to show investors that your company is worthy of their investment. By keeping your plan clear and realistic you will be able to show them that you can make it happen.

The Challenges of Female MBA's

With few exceptions, the business world has never been a bed of roses for women. In a society that still views business primarily as a "man's world," women, despite their capabilities and qualifications, continue to fight an uphill battle for equality that is due them.

A recent study conducted by Catalyst, a non-profit organization for women in the workplace, compared 9,000 male and female MBAs entering the workforce over a ten year period. 46 percent of the males received entry-level positions while 60 percent of the women were hired at an entry level, despite the same level of professional experience for both gender groups. Likewise, the men earned $4,600 more at their first jobs.

One of the reasons given for the parities is not prejudice but practicality. Most companies hire employees with a long term plan in mind. It is anticipated that young women entering the workforce after college will have children within a certain period of time, thus disturbing the succession planning of the company. Thus, businesses prefer to invest more in men, anticipating longevity with the company. Women, themselves, admit that family commitments may disrupt their careers and, therefore, they tend not to lobby and pursue the top positions.

The point was driven home in another study conducted jointly by the Columbia Business School and the Women's Executive Circle of New York. The study went beyond entry levels and found that the disparities plague women throughout their careers. In examining women's roles at the 100 largest public corporations based in New York, less than 11 percent of the C-level positions were held by women.

Women are making strides in the business world but the progress is slow. Companies do want equality but this will only occur when the business world attunes itself to the needs of the cultural world, allowing the business world to benefit from the many qualified and experienced women available, while modifying to meet the needs of the women's lifestyles.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®

Female Entrepreneurs - Unite!

No longer can it be said that business is a man's world. Female entrepreneurs are an integral part of the business world. According to a report from the Organization for Economic Cooperation and Development, Canadian women comprise 30% of business across the nation. This percentage is larger than any other country. In the United States, during a ten year period beginning in 1997, businesses owned by women grew at double the national rate of all U.S. private businesses.

So, the good news is that women are making their mark on business in substantial numbers. The bad news is that they are not using these numbers for any collective purpose or advantage.

There is power in numbers. However, most female entrepreneurs seem to prefer worrying only about themselves. An umbrella organization, Women Entrepreneurs of Canada, whose mandate is to create a more collaborative climate for women business owners, is fighting an uphill battle, as reported to a small core group of members at a recent meeting of the organization.

Rather than share ideas and efforts, the group reported that female business owners prefer to do for themselves and not share. Sharing resources and ideas is simply not the norm in female businesses, leading to duplication of efforts and a loss of a potentially powerful female lobby.

Men invest more time and energy developing their businesses. Thus, women cooperating with each other could greatly strengthen their businesses by uniting their efforts. Also, women are less confident than men in certain key business tasks and could certainly benefit by supporting each other to get over hurdles.

On the other hand, in a male dominated world, women still encounter certain prejudices in business. A strong female lobby could help push for changes in the business world that would lead to parity in general, while addressing the distinct needs of female entrepreneurship when applicable.

This organization, while small at present, is picking up speed and hopes to build a strong, influential coalition of female entrepreneurs to help the nearly one third of Canada's business community leadership.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®