Given the financial challenges, what is some of our advice for women entrepreneurs attempting to launch growth-oriented firms?
Develop your financial knowledge and skills. Start with the basics, and build your understanding over time. Ultimately, you are responsible for the financial decisions and well-being of your firm, and funding providers will expect you to have a firm grasp on the financials.
1) Not Having a Roadmap to Financial Success - You need to have SMART (Specific, Measurable, Attainable, Realistic and Timely) goals for all aspects of your financial life, such as the income and business revenue you want to generate, the amount of debt you want to pay off, the net worth you want to build.
1. - Supply. - When it comes to business operational management, the organization must bring in a supply to work with from somewhere. For service-oriented companies, this supply tends to be primarily data, although office supplies and hardware are also important factors. For manufacturers, supply is the raw materials that the company buys to make products. The supply should be dependable and cost-efficient, with the business buying the best resources at the best prices.
1. - Focus on what you do best. - Whether you are a one-person shop or you have employees, it’s important to focus on the things only you can do and delegate the rest. If you’re like me, the first thing that may come to mind is, “Oh my God! I can’t afford it!” Take a step back and run the numbers. How much is your time worth? Put a dollar figure on it.
1. Poor Productivity and Planning Procedures. - A stagnant rate of client solicitation or poor progress in existing projects is a sure indicator that your management is not ambitiously and actively driving expansion and improvement.
2. Ineffective Employee Management and Low Morale. - To produce optimal results, employees need continual guidance and supervision. When managers do not monitor and refine employee practices, the company will almost certainly never reach its full potential.
1. - Deferring your taxes. - Business owners love the idea of deferring taxes. That's a big part of the appeal of tax-deferred retirement plans, such as 401(k)'s. But what direction do you think tax rates will be going over the long term? If, like many people, you believe taxes are going up, consider that if you're successful in growing your nest-egg, you'll only end up paying higher taxes on a bigger number. Even if tax rates stay the same, I estimate that by deferring your taxes, you'll ultimately pay 10 to 20 times more in taxes over a 30-year period. Consider paying your taxes up front - at least you know what they are.
