The number of women-owned businesses is steadily growing all over the world1—but this growth doesn’t always come easy. In fact, women often face challenges that men don’t – challenges that can negatively affect the success of their business.
These key steps can help women protect their business’ financial future.
Get the support you need.
Women-owned startups receive just 7% of venture funds and take roughly $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 centers 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.
Believe in yourself.
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. However, studies have also shown that women-led businesses outperform those led by men. 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!
Find the right work/life balance.
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.
Get the insurance coverage you need.
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 purchasing for your business:
3 Why Women-Owned Startups Are a Better Bet, Boston Consulting Group