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!