Bridgett’s Business Tips

Women are a major force behind business growth in the United States. For proof, just look to these numbers from the 2017 “State of Women-Owned Business Report” commissioned by American Express. Over the past two decades, the number of women-owned businesses has jumped 114 percent, and 39 percent of all U.S. businesses now have majority-ownership by a woman or women. But even as these numbers grow, the women behind independent businesses still face unique obstacles and a statistically harder time securing capital. That’s why this month, I’m here with insights on how the women-led businesses in our communities can get their best shot at continued success.

Q: As a business-owning woman, how do I get the funding my business needs for growth?
BK: A fair question, given that women-led businesses do statistically tend to receive less funding. The good news is that it’s at least partly in your power to counteract this inequity. According to a study reported by Experian, when women apply for business loans, they tend to apply for smaller amounts than men – possibly assuming that they’ll be denied if they ask for more. If and when the time comes to seek investments, be confident in your data, know what your business is worth, and ask for it – not for what you think you “could” get. And when applying for a business loan, try to find a lender that has a genuine interest in supporting local businesses.

Q: Is it worth it to acquire certification as a women-owned business (WOB)? What is the process for doing so?
BK: If you intend on doing business with any local, state or federal agency then certification as a WOB is certainly worthwhile. It’s a designation that can earn your business increased opportunities for landing government contracts. To be eligible for certification, a business must have majority ownership by a woman (or women), and one or more women must be actively involved in running the business.
It is possible to self-certify, and this may be sufficient for your purposes, but for increased credibility you may choose to seek certification by a third-party. The U.S. Small Business Administration has authorized several organizations to provide certification as a women-owned small business (WOSB). You can learn more at certify.sba.gov.

Q: How I can build a network with other business-owning women?
BK: Women-only networking groups and events are a growing trend, and they’re a great way to connect with – and support – similarly entrepreneurial women. Many women find these “no-boys-allowed” networking opportunities more authentic compared to the superficial style that networking events sometimes get a bad rap for. They’re also an excellent place to potentially find a mentor. Some possible starting points might be the Roanoke Regional Chamber’s Women of the Chamber group, Femcity Roanoke, the Roanoke-Blacksburg Technology Council Women of Technology Group, or the Richmond chapter of the National Association of Women Business Owners (NAWBO).

Bridgett Kidd is an experienced financial professional who serves as Member One‘s Vice President of Business Services and Business Lending. Her financial education series offers tips for making smart decisions when it comes to managing your small business.