By Angela Dorsey
It’s an exciting time to be a woman business owner. As of 2018, there are 12.3 million women-owned businesses, which equates to 4.3 percent of all firms. According to a SCORE report, women are slightly more likely to start a business than men. (1)
The success and growth of a business relies on a variety of different factors and components, but when it comes down to it, it all centers around finances. Namely, what needs to happen to increase revenue, streamline operations and reduce taxes so that the businesses (and business owners) can both thrive for many years to come.
Here are the top financial concerns women business owners are currently addressing.
Are You Charging Enough For Your Services And Products?
Currently, women in the overall labor market make 78 cents on the dollar when compared to what men make. (2) More shockingly, women-owned businesses are making 25 cents on the dollar when compared to their male counterparts. (3) When it comes to running a business, the services rendered must reflect what the market is willing to pay and what makes sense for the business owner’s bottom line once overhead expenses, taxes, and payroll are deducted. If what you offer is lower than what your competitors offer but it is not strategically increasing your clientele or demand, then it’s time to re-crunch your numbers to adjust your pricing. This way, your business not only stays “in business,” but it can yield the profitability needed to move forward and increase growth into the future.
When Is The Right Time To Hire Out For Services?
DIY (do it yourself) is often the primary method used when there’s barely any capital to spare to hire help. At least this is what it’s like in the beginning. But as your business grows, it’s important to note that time is money and your time needs to be spent in the best way possible to bring in revenue for your business. This means hiring out for services that another professional can take care of so you can concentrate on other areas. For instance, a virtual assistant can be hired to take care of your social media marketing, freeing up your time to follow up with more leads and prospects. When burnout becomes a normal day-to-day trend, perhaps it’s time to think about hiring out for services. Start by researching how much it would cost to take advantage of outsourced services; start comparing the numbers.
How Do You Make Money Sustainably?
You can always make more money, but you can never get back your time. The hustle to make sales and find clients is exciting, but it can be grueling over the long term, especially when it continuously cuts into your family time and self-care. Raising your prices is one option for creating sustainable money as it boosts your bottom line quickly. However, it can result in growing pains for your current client base and repercussions will most likely follow. The other option is to restructure your business model to include a recurring revenue model. This can be in the form of passive online services (e.g., online courses) or in-demand and ongoing products (e.g., 30-day supply of nutrition supplements). This will require testing the market to see how they will react to your new offerings. No matter what you do, don’t put all your eggs in one basket and do prioritize your needs and well-being.
Take The First Step
We at Dorsey Wealth Management take your concerns regarding your financial matters seriously. We know how important your bottom line is when it comes to the future of your business and the fulfillment of your dreams. Schedule a free introductory 30-minute phone call to find out exactly how we can help keep you on track and accelerate your current financial practices for bigger results.
About AngelaAngela Dorsey is the founder and fiduciary financial advisor at Dorsey Wealth Management, a fee-only financial planning firm based in Torrance, California, helping successful women prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a Certified Financial Planner™ (CFP®) and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion of empowering women to make the best financial decisions possible. Angela lives in Torrance, California with her husband and two children. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.