Starting a business is an equally exciting and daunting prospect for anyone. However, for female entrepreneurs, launching a venture can be incredibly challenging.
In business, women have fewer role models for aspiring to, restricted access to funding and multiple barriers to overcome. However, those who succeed in starting up will see potentially better results, unlock opportunity and do their part in bridging the gender gap.
Being able to meet the challenge of being a woman in business head-on often means seeking new ways to establish oneself, utilising support and identifying alternative routes.
In this blog, we have put together our eleven top tips for starting an enterprise as a woman, encompassing the many obstacles you may face and the ways you can give yourself a head-start, even when the odds may seem like they’re against you.
Play to your strengths
While much emphasis is put on why women do not enter entrepreneurship as readily as men, there isn’t enough focus on why women make great business leaders. Women stereotypically possess many traits that lend well to business, including problem-solving, communication, and responsibility.
Due to these characteristics, research shows that women-led companies often perform better.
As such, women must embrace the strengths they have when launching their firms. Men’s dominance in the industry may cause some to believe they have to abandon their ‘feminine’ traits, but this is not the case. Instead, look at how your unique skills will allow you to successfully run your venture and play to them to maximise results.
Embrace being a woman
Although challenges remain, the road is getting clearer for women entering business. This is thanks to many initiatives and programmes, created to narrow the gender gap and help female entrepreneurs rise.
If you struggle to get funding elsewhere, it is worth applying under female-specific schemes. These could include mentoring programmes, funding competitions or networks. The benefit of them being aimed at women only is that they have been created specifically for people like you, and can put you in touch with like-minded peers.
By utilising the opportunity open to you as a woman, you will be able to broaden your horizons and get results in a way that feels inclusive. Similarly, it will help to level the playing field, so you achieve the same success as your male counterparts can.
Network
Networking is a critical facet of business, but one that women often find themselves locked out of. However, creating connections is essential to identifying opportunity and sustaining valuable relationships that may assist your company in the long run.
Rather than being discouraged by male-dominated networks, focus on alternative ways you can meet new people. Examples include joining female-only networking, utilising mentoring schemes or asking peers to introduce you to their relevant contacts. It may also mean establishing your own networking style.
Regardless of how you network, make sure you build relevant relationships with people who may genuinely support your enterprise and have them ready to call on when they’re needed. This could be the key to finding new suppliers, funders, partners and even customers.
Utilise support
As we’ve already touched upon, starting a business is challenging. So, it’s essential to utilise support where possible to get yourself a leg-up.
Support can come in many forms. It may be getting useful advice from a mentor or peer, getting introduced to a new contact by a friend, applying for a government grant or discussing options with a business or financial advisor. This support is often free and can prove invaluable when establishing your venture.
Spend time identifying the support routes open to you, depending on your needs, and don’t be afraid to take it up. This will help you to overcome barriers quickly and better adapt to future challenges.
Understand your funding needs
When launching a start-up, external finance is vital in raising the capital you need to make your plans a reality. This means undertaking a careful cost analysis to determine how much money you need.
Women are reportedly more likely to ask for and receive lower sums through external finance. As a result, they receive half the starting capital of men on average. This could mean female entrepreneurs are not getting the amounts they need to effectively launch, putting them in even more of a backward position than their male counterparts.
Therefore, female entrepreneurs must understand how much funding they need to ask for from lenders. This will enable you to cover all the costs associated with your start-up, so you can begin on solid foundations, and focus on running your business.
Apply for finance
While women may ask for less finance, some research has suggested they have a higher success rate when submitting loan applications. This indicates that, if more women were to apply, more would secure the funding they need for their business ideas.
As such, it’s important to be encouraged to apply for relevant finance schemes. To boost your chances of success, you should understand the application process requirements and spend time putting together a robust, bullet-proof submission. This will help you to secure the funding you need to start.
Know your value
If more women were encouraged to establish businesses, it could unlock around £250 billion worth of value for the UK economy. This shows the value of having female-led organisations.
Make sure to know your value at all times and understand what you are contributing to your industry, your customers and the economy as a whole. By focusing on this, you will feel more confident when applying for finance or networking. It will also enable you to secure the support you need, knowing that there will be a pay-off in doing so.
It’s also worth noting that attitudes are changing towards women in business – so others out there will be as aware of your value as you are.
Know your market
Due to the unique perspective women offer to business and possession of empathy and emotional intelligence, they often can cater to otherwise uncatered for markets. They also tend to understand their market very well.
Use this to your strength when establishing your enterprise. Understanding your customers on a deep level, including their pain-points, interests and needs. This will enable you to provide a tailor-made offering and accompanying service that meets expectations, establishes your audience and creates a loyal customer base.
It will also help you to fill gaps in the market, generating demand and revenue for your business.
Plan
Planning is essential when beginning a venture, whether a new business or new service or product. An effective plan keeps you on track, establishes routes towards your goals and acts as a contingency when things go wrong. So, make sure that you spend time crafting an efficient business plan, as well as financial models and other relevant strategies.
When applying for finance, many lenders will often ask for sight of your business plans, so having them is essential. It will also strengthen your understanding of your operating models, meaning you can tackle any questions promptly.
Remember, it may also be worth utilising support when creating a business plan to ensure everything has been accounted for.
Find a routine that suits you
One of the commonly cited obstacles for women is that they have to fit running a business into a busy lifestyle as they act as the primary caregiver for their family. While some women will need to maintain a work-life balance, there are options available that will allow them to do this while launching a company.
In the modern age of technology, a 9-5 day is no longer a necessity. Networking may be done online, from home, and at a time that suits you. Deals can even be agreed after hours. As such, you are able to build a flexible approach.
By creating a routine that fits into your lifestyle, you will be able to achieve your ambitions and yield results without having to make personal sacrifices.
Seek opportunity
With the odds against women in business, it is essential to identify and embrace the opportunity and meet your goals. Opportunity could come in any form: publicity, contracts, partnerships, investment and so on. However, it is vital to be open to it.
As we’ve already mentioned, networking is a great way to seek out new opportunities. It may also be worth researching different platforms to identify it for yourself. You may find something that gives your business a welcome boost.
It’s also noteworthy that women will receive more and more opportunity over time as attitudes change. Aim to stay on top of this, so that once the opportunity presents itself, you are ready to take advantage and reap the rewards.
Conclusion
There is no denying that starting a business is tricky, especially for women. But understanding the challenges you may face and knowing how to give yourself the best possible chance at success will enable you to achieve your desired results.
However, at every point, utilising the support available is essential. This will lead you to the next opportunity and ensure you follow the right path for your business.
At Pegasus Funding, we offer advice that allows you to identify the perfect funding fit for your enterprise and overcome funding barriers. We work with businesses of every shape and size to determine what they need to survive and grow, in line with their bespoke needs.
We can also point you in the direction of relevant funding sources and work with you to create robust business plans that win capital.