Small businesses owned by women make up a rapidly expanding sector of the economy, and the competition is increasing. In fact, the National Association for Women Business Owners reports that women-owned businesses make up about 40% of all privately held firms. Over 13 million people work for businesses that are owned by women, and these women-owned businesses generate a whopping $1.9 trillion in annual sales. There are a plethora of opportunities for women in the small business field! With some time, effort, and finances, your dream of starting your own small business may not be as far off as it seems.
Advantages of Securing a Small Business Loan
Of course, starting a business requires money. Depending on the type of business you plan to run, you may need anywhere between a few hundred dollars to several thousand dollars, or even more. Experts often advise against using money out of your own pocket to start a business because you will end up mixing your personal credit with that of your business. If the business struggles at first, you may end up hurting your own credit. Thus, obtaining a small business loan is crucial for success. Biz2Credit helps small business owners secure startup business loans everyday through SBA loan guarantee programs, traditional banks, and alternative lenders.
How To Apply
The SBA has some programs, such as the Office of Women’s Business Owners, that are designed specifically for women. You can consult the office with questions about writing a business plan, which you will absolutely need. The business plan answers all the questions that a lender will ask (including what your business entails, your business goals, etc). Keep in mind that low-risk business ventures are more likely to receive the small business loan that they need, but this does not mean that you shouldn’t take any risks!
Seeking Professional Advice
There are many organizations out there that exist for the sole purpose of helping women achieve their small business hopes and dreams! They can even recommend various loan programs that may be catered to your specific needs, and how to apply. Such organizations include Women Impacting Public Policy (WIPP), NAWBO, National Women’s Business Council, SCORE, Gateway for Women-owned Businesses Selling to the Government, and many more.
Remember, having financial knowledge is vital for your company. It isn’t enough to simply rely on a banker or accountant—you should be able to crunch and understand your business’s numbers.
This article was submitted by Megan Zhang, freelance blogger and writer. She lives in New York City. Send all questions to firstname.lastname@example.org