Women's Business Blog

3 Steps For Women Entrepreneurs To Start A New Business

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As we enter 2012, the economy doesn't show any energy for providing job opportunities for those excited about getting back to work. Historically, recessionary times are the best time to start a new business. In my experience working with entrepreneurs, particularly women entrepreneurs, the long holiday season is the time when new business ideas are imagined, shared and planned. Once the new year begins and the rest of the world goes back to their treadmill lives, the entrepreneur digs in her heals and sets out to start her new business.

Here are the first 5 steps to take as you strategize opening a small business:

(1) Compute how much money you'll need to get started. No matter what type of business you want to start you will need money for a variety of expenses. Too many entrepreneurs, particularly women entrepreneurs, underestimate the amount of money it will take and go out of business before ever having the opportunity to prove the business model. Startup expenses include everything from what business structure you choose (sole proprietorship/dba to LLC to corporate partnership). These costs start at about $150 and can go as high as $10,000. Marketing materials from business cards to flyers to brochures to website and more. It's 2012 and every small business needs a website so don't pretend that this is an expense you can put off down the road. Calculate a minimum of $1500 for startup marketing costs no matter what your new business idea. Other expenses, depending upon your business, add up fast: computer, printer, phone, space, utilities, insurance, car, gasoline, travel, and entertainment. Please don't underestimate any of these expenses as they will eventually come up so the sooner you plan for them the more likely you will be to afford them and build your business successfully. Finally, if you are starting a new business in place of working somewhere else you must include expense for your time that you are not being paid somewhere else. You need to be able to afford to be an entrepreneur. You need to set aside funds for your personal living expenses while your business gets up and running. So, unless you are lucky enough to have someone else paying your daily living expenses include this expenses in your startup costs so you won't have to pull the plug on your business because you run out of time needing to make a living.

(2) Write a business plan. I make this your second step only because I know from experience that when I tell entrepreneurs to start by writing a business plan many put this step off as it seems more scholastic than entrepreneurial. However, without a roadmap for your business you will eventually realize you have not planned for all possibilities and outcomes, and if something does goes awry you will not be able to bob and weave the business forward. The purpose of a business plan is to put in writing, step by step, how you will be able to pay your expenses with the generated revenue from selling your product or service. As soon as this process doesn't work you need to review your business plan to see what has gone wrong. A business plan is meant to be a flexible document that you look at regularly to guide you to succeed. It works when you work it. Entrepreneurs can get help writing a business plan online at the Small Business Administration and many other places for FREE. Many educational institutions have on campus programs that offer FREE assistance also. I offer entrerpeneurs this service for a small fee. It doesn't matter where you go for help with this but every entrepreneur MUST write a business plan if they truly want to start a business. You MUST prove in writing that your business idea is feasible - that the consumer will pay you what you need for your product or service. There must be a need in the marketplace for your business idea to become a successful business.

(3) Know your strengths and weaknesses. Currently many consultants identify this step as a SWOT analysis. (Strengths, weaknesses, opportunities, and limitations). Many entrepreneurs are quick to understand how the business idea itself stands up to the SWOT analysis. What too many entrepreneurs DON'T do is look at their personal strength and weaknesses. This is critical to business success. I have met many passionate entrepreneurs who have all the savvy to be successful but, unfortunately, have no sales ability. If you can't sale your product or service you MUST hire sales! This is not an option, although I know many entrepreneurs who wait until it is too late before being willing to pay for what is the lifeblood of every business. We all have strengths and weaknesses and awareness is to key to building a successful business. You can remain a sole proprietor but you MUST outsource your weakness. In my experience, most entrepreneurs often need to consider outsourcing sales, accounting/bookkeeping, and website/social media. Depending upon the business, many entrepreneurs find that a virtual assistant also can be a valuable asset to getting the business off the ground.

2012 is the year for your new business if you are willing to do the work. Women entrepreneurs will start more new businesses in 2012 than in any previous year. I wish you the best of luck with turning your passion into a business.