There are now more female entrepreneurs than there ever have been in the past. According to a report from American Express, the number of female-owned businesses grew an amazing 58% from 2007 to 2018.
While it is encouraging to see more women in leadership roles, many of these businesses still struggle to meet their full potential. Some of this can come down to merely not attaining sufficient initial funding for your small business, but there are things you can do to position your business for growth.
Protect Against Risk
Every business venture comes with risk. A smart business owner may be able to identify some risks and avoid them, but there are a lot of variables that you cannot control. Expensive equipment can get damaged, you have the possibility of lawsuits and there are events that could halt your operation altogether.
Female entrepreneurs need to make sure they have the right types of business insurance to protect against the financial fallout that can come from these types of events. Don’t take solace in having the bare minimum required for you to open your business. Review your risks and get the coverage your business needs, not just what is recommended.
Try New Things
You can learn a lot by looking at your competition, but you shouldn’t be afraid to do things differently. You’ll never stand out if you just follow what everyone else is doing. Try new ideas for developing your brand and look for unique ways to market your business.
Beyond that, be ready to adapt to changing trends. As a small business, you are much more agile than your larger competitors. Take advantage of this by keeping an eye on the market and take any opportunity to get ahead of the curve.
Keep the Customers You Have
Winning new customers is great, but your existing customers represent an established base of income. Instead of just getting the sale and being happy with that, put some effort into retention. With efforts like a customer loyalty program, you can encourage more sales from the people who are already familiar with your business and operations.
It is generally more cost-effective to retain your existing customers than it is to pursue new ones. Along with that, it is a good way to establish a stable revenue stream. Once you can demonstrate reliable revenue, it will be easier for you to obtain funding.
Invest in Success
The profit margins are usually pretty lean for most new businesses. In some cases, the first few years may come with no profit at all. This can be a difficult time for female entrepreneurs who are starting a new business, but you have to do what you can to invest in the future of your business.
If you are seeing a profit, you should invest as much of it back into the business as possible. Early investment is one of the keys to growing a small business. You might have to make personal sacrifices to do this, but it will be worth it when your business is strong and stable.
Hire Good People
Having the right people around you can be one of the most important parts of growing a small business. If you are ready to start hiring employees, you need to be careful about the people you bring on board. You need people who are ambitious and dedicated to the mission of the company.
If you bring in the wrong people, it could do much more damage than just slowing the growth of your business. With the wrong attitude, a bad employee can infect the entire organization. This is especially dangerous for small businesses that are just starting out.
Optimize the Customer Experience
As a new business that is trying to grow, you probably do not have the resources of your larger, more established competitors. To succeed with this disadvantage, you have to be able to deliver a better, competitive customer experience.
Offering better products or services will be a part of this, but there is more to it than that. You have to be on top of customer service to make sure any concerns are addressed. You should also seek feedback and use it to improve the way your business operates.
Finally, you need to have the right outlook. Things are not always going to follow your plan. Don’t get discouraged and have the attitude of a person who is not going to let any obstacle stop her from achieving her goals. The right outlook can make a significant difference for a female entrepreneur who is trying to grow her business.