Financial Tips for Women Starting a Business

By: Michelle Dunn

I know what you’re thinking, are the financial tips for men starting a business different than for women? Well, they can be. Some women starting a business have never worked outside the home and need to start from the beginning, while some men may be starting a business after working in the workforce for many years. I had worked in the workforce for over 10 years before I decided to start my business and had some experience but still ran into problems. This is why I want to share these tips with you, so you can avoid problems I ran into and get your business started sooner and with less headaches!

If you are currently working at a job and thinking about starting your business, the first thing you should do is KEEP YOUR JOB! Don’t quit your job before you have a plan in place. While you have your job, you should be doing some things that will help you once you leave your job to work full time for yourself.

1. Write a business plan.
2. Write a marketing plan.
3. Write a credit policy.

These are three of the most important things you will do for your business. People are normally frightened away by these three things but don’t be! I have examples of all three of these items in my books and you can feel free to use them as they are or customize them for yourself. You can look online for examples of these types of plans and create your own. If you have these three items BEFORE you go to a bank for financing, you are guaranteed to have a better chance at getting approved than someone who does not have these items. If you go to the bank or approach the SBA without any of these items they will tell you to come back when you have them. So be smart and be ready.

Many small businesses are launched by the personal resources of their owners. But they can quickly reach the stage where the owner must look to the credit market for financial help in expanding operations. Some things you can do to improve your financial standing when starting a business are:

1. Get copies of your credit reports – you can do this free once a year.
2. Pay off any credit cards or bills you have as quickly as possible.
3. Start out small, buy more equipment or expand as your business grows rather than trying to start out “big”.
4. Share office space with a business that compliments your business.
5. Share big equipment such as copiers, fax machines, postage meters or printers.

Michelle Dunn is the Nations top expert on credit and debt collection. She has 7 published books on the subject and 20 years experience in the industry. Her award winning book, the third edition of “Starting a Collection Agency, how to make money collecting money” is a consistent best seller in its category. Visit her websites at www.michelledunn.com and www.credit-and-collections.com