Profitable business ideas for women and how to manage their finances
Female entrepreneurship is on the rise, and we’re seeing many business ideas for women emerge. For women business owners, the sky is the limit when pursuing opportunities and starting businesses especially when there are more business ideas than ever to pursue!
What to Consider Before Starting Your Own Business
While brainstorming for that perfect business idea, remember to consider the following factors.
What do you want to achieve from the business?
One of the first things to think about in tandem is the reason behind your business endeavor. Think about why you need a business, what you need from it, and what you stand to gain in the long run.
How important is this business for you? Are you quitting your job for it? Or is it because you need a second source of income? Do you wish to become an entrepreneur to give back to society, or is there something more to it? Analyse all these factors.
What do you like to do?
What is the right business idea for you? While choosing something you are passionate about is great, know that crafting and sustaining a profitable business takes more than just being passionate about something.
Think deeply about the things necessary to turn that idea into a successful business, all the different requirements, including raw materials, human resources, financing, and construing effective business strategies & business models.
What are you good at?
If you are confident about your entrepreneurship capabilities, go for the thing you love the most. There are few things more satisfying than turning your vocation into your avocation.
What would you like to learn?
It is always possible to learn or polish and re-engage in an acquired skill of old. If you are confident enough, develop a long-term, agile & competitive business plan and go for it.
Below are some of the best small business ideas for women entrepreneurs.
Business Ideas for Women Entrepreneurs
If you’re toying with the idea of starting a new business, there are many fantastic business ideas for women that are worth pursuing. The first step is to research ideas and see what resonates with you. You can find resources on business ideation, such as the SBT on how to start a business with a step-by-step guide. You can also look into an online course to help you get started with your online business.
You can run online stores, a brick-and-mortar business, or even a combination of the two. Make sure to do other research, such as whether you should get a women-owned business certification before pursuing anything.
1. Online Tutoring
As the education industry shifts towards online learning, online tutoring services are becoming more popular than ever before. Women who have expertise in a particular subject or a background in education can capitalize on this trend by starting an online tutoring business.
With the ability to work from home, online tutoring offers a flexible schedule that can accommodate other responsibilities. You can reach a wider audience by using social media and online forums to promote your services.
By providing personalized lesson plans and progress tracking, you can offer a valuable service to students of all levels to help them achieve academic success.
2. Catering and Food Delivery
Catering and food delivery services are great business ideas for women who have a passion for cooking and an eye for presentation. People have busy lives. It’s tough to work and still eat healthy—especially if you’re trying to feed a family.
You can provide a variety of services in this space. Examples range from preparing meals for special events to delivering pre-made meals to customer homes. This is also an excellent opportunity to get recurring revenue from a food delivery subscription service.
If you can offer sustainable and healthy food options, you’ll be able to differentiate your business from competitors and appeal to customers who prioritize their health.
3. Laundry Business
A laundry business caters to the consistent demand for cleaning services, offering various pricing strategies and marketing opportunities. It's a practical option for entrepreneurs seeking to serve busy families, professionals, or seniors with convenient laundry solutions.
4. Blogging
Starting a blog on a topic of interest can lead to a profitable business through advertising, sponsorships, and affiliate marketing. It offers the freedom to express creativity and connect with a like-minded audience.
5. Self-Improvement Coaching
With the personal development industry booming, self-improvement coaching is a promising venture. This business can be diversified by building a team of professionals to offer a range of services.
6. Mushroom Farming
Mushroom farming is a unique and low-investment business with high profit potential. Understanding the specific needs of different mushroom varieties is crucial for success in this niche market.
7. Party Decoration
Starting a party decoration business from home capitalizes on creativity and design skills. With events happening year-round, this venture offers steady demand and the joy of enhancing celebrations.
8. High-Fashion Reseller
If you’re looking for more business ideas relating to fashion, you can also become a high fashion reseller. The business model is relatively simple: You can start by buying high-end clothing from different sources and reselling them on online platforms. You can increase sales if you’re a social media influencer since you can easily model the clothes.
9. Dropshipping Store Owner
Dropshipping is one of the best small business ideas for women looking for passive income opportunities. It’s flexible and comes with low startup costs. You can select and sell products online but have the manufacturer ship to customers rather than doing it yourself. Many women have started dropshipping businesses alongside their full-time jobs to earn extra money.
10. Virtual Bookkeeping Business
If you’re looking to start your own business and are willing to learn basic bookkeeping and accounting, then you can start an online business. You can work with other small business owners to help with bookkeeping, expenses, and other tasks and make money online. There’s consistently high demand for this service, and you can largely work remotely.
11. App Developer
Common Financial Mistakes Small Business Owners Make
Every business has its own specific challenges, but there is a pattern of missteps many small business owners make that contribute to financial difficulties.
Combining business and personal finances
It’s tempting to use your personal cash and credit to fund your business expenses until you start generating revenue, but resist the urge. Not separating business and personal finances can cause serious tax issues down the line not to mention make it hard to cover your living expenses.
Relying heavily on credit cards
A business credit card can be a valuable tool when used correctly. However, too many small business owners rack up high balances without sufficient income to pay them off each month. Monitor your credit card spending closely to avoid getting hit with excessive interest on an out-of-control balance.
Buying unnecessary items
It’s OK not to have the brightest, shiniest equipment when you’re just getting started. The money you spend on expensive office furniture is money you could have put into an emergency fund. This brings us to our next common mistake ...
Not saving for emergencies
As we learned the hard way, you just never know when a global pandemic is going to shut down the economy for months. Having an emergency funds will help your business stay solvent during a simple slow stretch and during a full-blown disaster.
Not insuring the business
Business insurance is nonnegotiable if you want your company to succeed. Rebuilding after a natural disaster, cleaning up a cyberattack, or paying on a liability claim can ruin your business financially if you aren’t insured.
Failing to make and stick to a budget
A budget helps you control your spending and understand where your business’s money is going. Set a budget for everything from office supplies to overtime and stick with it. If you find that you spend more than you budget each month, look for inefficiencies or waste to make up the difference.
Underestimating tax obligations
Underpaying taxes can land you and your business in serious legal trouble. Work with a tax or financial expert to ensure you understand exactly what your obligations are and when payments are due.
Tips for managing SME finances
To achieve sustainable growth, SMEs need to implement specific steps that align with the size and needs of their business.
From separating personal and company finances to using financial applications, here are 3 tips that can help SMEs.
Separation of Personal and Company Finances
It is essential for SMEs separate personal and company finances. Avoid mixing personal funds with business funds. Create separate accounts for company finances and conduct financial transactions separately. This practice enhances transparency, facilitates tracking of business finances, and simplifies the management of financial reports and taxes.
Leverage Financial Applications and Software
SMEs can optimize financial management by leveraging various software such as Aspire and Zero to assist in recording and monitoring cash flow, generating invoices, managing inventory, and preparing accurate and user-friendly financial reports. This saves time, reduces the risk of errors, and enhances efficiency in financial management processes.
Implementing Smart Debt Management Principles
SMEs need to be cautious in managing debt. Avoid accumulating debt without thorough planning. Instead, explore alternative funding sources such as reliable financial institutions or investors. Continuously evaluate the company's ability to repay debts promptly and avoid excessive borrowing. Adhering to wise debt management principles enables SMEs to maintain financial health and minimize the risk of bankruptcy.