A new generation of women has emerged – these days women have more
managerial experience, education, better overall business revenue and
employment profiles.
Women-owned firms are becoming more and more prevalent now and they
are even diversifying into all industries. Construction, manufacturing
and transportation have seen the largest recent increases in the number
of women-owned firms. With that being said, women still manage more of
the retail businesses. Seems that is where the niche has been and
continues to stay.
So if you’re a woman and looking to start a business, how do you
know what type of business is best for you? Many of the women
entrepreneurs say they use the same products and services at home that
they do in their business, for familiarity and convenience.
Sometimes it seems like a good idea to start a business with a hobby
that you love. Crafts, candles, baskets, baking and sewing often fall
into this category. If you decide to go that route, consider the profit
margins. Add up the cost of raw materials, your time, storage costs,
advertising costs, shipping costs and business expenses. Determine if
you can charge enough to have a good profit margin - which should be at
least 50%.
In this case, you need to also take a look at the market saturation
with similar products. How many stores carry a product like yours? What
will make people buy from you and not from the stores they already
frequent? People seem to migrate to business that are familiar to them
and where they’ve had good experiences. It can be difficult to pull
those people away from what they know and over to you and your new
business. Also, remember that you want your business to be long
term. If you turn a hobby or craft into your business, will you be
able to stay interested and focused on that hobby or craft in 5 or even
10 years from now?
What about a franchise? A franchise is an excellent option if you
have a good amount of capital going in but not a lot of experience in
business or in the industry you are considering. Here’s the great
thing about franchises; they provide the product, marketing, and
structure for success. They have done it in other locations and have
perfected the process. It’s up to you to manage it.
If a franchise is the way you feel you would like to go, consider some type of kids franchise
– if you’re a mother, this may be easy to find. After all, most moms
have excellent ideas regarding kids that no one else could have ever
come up with!
