How women can protect the financial future of their business

The number of women-owned businesses is steadily growing all over the world¹—but this growth doesn’t always come easy.

These key steps can help women protect financial future of their business.

Women-owned start-ups received only 7% of venture funds and take roughly US$35,000 less in business financing than their male counterparts.² In addition, women often find it more difficult to connect with fellow women entrepreneurs or women in leadership positions who can help them along the way. To get the financial and business support they need, women should seek out venture capital firms, networking events, and business centre's that are founded or run by women, have a strong history of investing in women, or are designed specifically to help women start and run successful businesses. 

• Explore funding options that might be available through venture capital funds; read about 25 Top Women-Founded Startups to Watch
• Consider these women-focused networking events: Business in Heels, Future Women, Business & Professional Women; and groups specifically for women in business, like Women’s Network Australia and She Mentors.

According to the Center for Women’s Entrepreneurial Leadership at Babson College, fear of failure is consistently higher among women than men. Many women simply lack the confidence – not the competence – to succeed in a business venture. . So, while businesses founded or co-founded by women may receive less than half the investment money male entrepreneurs do, businesses with women at the helm deliver higher revenue – on average, more than twice as much per dollar invested.³ So, feel confident in your abilities and you’ll be well on your way to making your business a success.

Many women business owners are not just entrepreneurs but wives and mothers too. Finding the right balance between the different parts of your life can be challenging, but is not impossible. Look to others for support so you don’t have to carry the burden yourself; set realistic expectations and boundaries; and set aside time for yourself. Learning to say “no” and to stop comparing yourself to others is also important. In many ways, being an entrepreneur may actually help you – because you’re in charge of your own career, instead of having someone else make the rules.

If something happens to your business – say you suffer a cyberattack, property damage, or you are sued because of an error you made in providing a professional service – you’ll want to have the right insurance policies in place to help you get back on track. Here are some key insurance coverages to consider when purchasing for your business:

• Business owner policy (BOP) – Includes three primary types of insurance to consider if : (1) you or your company accidently cause someone else reputational or bodily injury (called general liability); (2) your business, products, or contents are damaged or lost (called property coverage); and (3) you lost income before your business gets back up and running after a claim (called business income interruption).
• Cyber insurance – Provides your business with resources, support, and reimbursement if you are a victim of a cybercrime, ransomware demand, accidentally share private data or delete client information, or lose income due to a cyberattack.
• Professional liability – Also known as errors & omission insurance, professional liability is aimed at businesses that deliver professional services. The policy may cover your legal defence if you are sued due to negligence or even if for any reason the customer sues you for damages. 
• Worker’s compensation – If you have even one employee, your state may require you to provide this type of insurance. Even if it doesn’t,  worker’s compensation will pay for medical expenses, rehabilitation services, lost wages and retraining your employees if they become injured or ill performing job-related duties.