Women In Small Business- The New Leaders

I'm going to repeat that again: Four. Percent.

Even more depressing is that it's not looking much better for angel investors. Only ten percent of angel money goes to businesses headed by women. A little better, but not by much.

It's not that the money wasn't there at the time of these studies. On the contrary, there were billions in investment dollars available in new venture capital funds and new angel groups sitting around waiting to go out. The current status of these monies is probably a little less readily available which would depressingly make the above statistics shrink even more.

So how come women weren't getting their fair share? What is keeping us from getting our turn at bat?

The simple answer is that venture capital and angel investment firms are run by men. Anyone who didn't see that coming, raise your hand.

So the obvious question becomes, "what can we do about it?" It's been this way since before suffrage and while there isn't a magical solution, there are some real steps that women can take to make their companies a success.

Bootstrap the Company: Of the companies still standing, well over 90% them are still financed by the owners or "bootstrapped." It doesn't matter who's running it whether it be male or female, this is still the best way to finance a company. If you can't get it off the ground with your own money, then it won't make sense to someone to join you in the endeavor to help grow the business. Hire a mentor/business coach with experience launching start-ups. The money saved in avoiding key mistakes alone would more than make up for the cost of such a service. Visit www.EthosMentor.com to review their offerings

Incorporate: If you take your business seriously, others are more likely to do so too. Companies such as www.LegalZoom.com can offer up helpful solutions if you're not sure how to incorporate your business.

Create a Strong Management Team: I usually advise people to look at what is missing from their own list of skills and experience. If you see something missing in your resume that can be filled by an advisor you know or a colleague looking to work with you, add them to your Management Team. A strong and diverse Management Team can show that not only are you staffed with professionals, but that you all bring something different to the table that is important for success. There's a great website called www.PartnerUp.com that helps entrepreneurs such as you find these connections.

Build a Strong and Competent Business Plan: Remember that the business plan exists to outline the whole project, not just the numbers and the idea. The challenge to you as the entrepreneur is to present the whole package to a prospect and be able to defend every aspect. The idea and the numbers will always be what trip you up, but the management team and the strategies that you will use to meet your financial projections are just as important. Know the plan inside and out and be able to speak without looking at it as a reference.

Network, Network, Network: This will become your least favorite word to hear and say within the first year of start-up. It's important to remember that you must do this action like your life depends on it since the continued success of your business may well depend on the contacts you manage to make.

Create a Clean and Commanding Presence on the Internet: Just becomes the dot.com bubble burst is no reason to dismiss the importance of a strong web presence. Companies, such as, www.GreenLeafImaging.com will help you define brand identity along with establish and manage your web presence. It has fast become the first place that the modern consumer goes to discover information about you. You not only need to build a strong and functional information page but also strive to keep your reputation clean on the internet. Message boards and blogs can just as easily decimate you as help you if you manage to incur the wrath of disgruntled clients.

Go Straight to the Corporations: Many large corporations have venture capital arms with the sole purpose of identifying and promoting technologies in their fields. Begin research and due diligence by exploring www.TheFunded.com. This might be a way to get in should you have a viable venture that may be company specific and can bypass the usual forms of financing to get off the ground. You may run the risk of losing certain rights to your idea, though, so be cautious.

Promote Your Business Before You Open: Depending on your venture, a little pre-publicity and buzz can bring the attention interested finance people in your area. Start that interest and then strive to maintain it by following through on what you're promoting in the outset.

Don't Shy Away from "Women's Businesses": Don't get defensive about taking on a business that is considered a "women's business". Salons, patisseries, dress shops, etc. are all extremely viable business models run by women and for women. It's admirable to want to do something different but if it's not broken, then why not at least consider it?

We're all looking down the barrel of the economic gun right now and it's even harder today to get a business off of the ground, but don't let that be what gets you discouraged about starting your business. Remember that we are women with just as much ability and drive as any man who goes and seeks capital or investment. This might just be our time to get ahead.

Food for thought: Did you know that about eighty percent of the venture capital funded businesses fail? Without a doubt, the businesses begun by women have a much better chance of success than that.

Ellisa Brenneman started her career, after receiving her Bachelor Degree from the University of British Columbia, with the Canadian government merging academic rigor and business savvy to produce and disseminate research findings. She has been published multiple times in scientific journals for her research findings.

A born entrepreneur; her zeal for entrepreneurism soon took hold. She's started green businesses and has vast experience managing public, media and investor relations for small-cap public companies. Ellisa is the President of Ethos Mentor. Ethos Mentor provides entrepreneurs with affordable one on one mentoring, business coaching and capital raising services so they can launch and grow their businesses.

Visit www.EthosMentor.com for additional information, email info@ethosmentor.com or phone 503-501-2444 to schedule a free consultation.