Women Business Owners Still Face Financial Challenges

Women Business Owners Still Face Financial Challenges

Core Facts

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America is celebrating women business owners this week. Although the number of women-owned businesses is on the rise, they still face some financial challenges. The Census Bureau’s Survey of Business Owners, shows that while women own 36% of businesses in the U.S., only 11.3% of the sales revenue generated went to female-owned businesses. Businesses owned by men took in 79% of sales.

One factor that might be contributing to this inequality is the occupational differences between men and women.  Another is a lack of investment in women-owned businesses.

Getting Started

Whether you’re asking for a loan or an investment, a good business plan is essential. Start with an executive summary, which briefly explains your company as a whole and touches on your business's profile and goals. The next section should be an in-depth explanation of the history and development of the company.

Include a summary of the items and/or services you provide, along with a customer description, market analysis, and competitor analysis. Remember to put in the business's legal structure (e.g., corporation, partnership, sole proprietorship) and management organization. A comprehensive section on the marketing plan and sales strategy is also important. 

You will need a capitalization plan, including projected revenues, cash flow projections, pro forma financials, and an explanation of how you'll use funds.

Get the Right Support Team

  1. Find a good lawyer. There are many issues that can arise when you start a business. 
    A knowledgeable business lawyer who is used to working with entrepreneurs can help you navigate the legal waters.
  2. Work with a smart accountant. Find someone who has experience with new businesses, so they can guide you through any financial bumps and advise you on issues that could impact your bottom line. 
  3. Talk to a financial advisor who can help you protect your assets. You’ll invest a lot of yourself in a new business.  In many cases, the success of a new business depends on your being there.  Make sure that you protect yourself and your assets, so that the business is secure no matter what happens.


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.
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Tags: women and finances, financial literacy, financial planning, David Lerner Associates

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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