Cutting the Corporate Purse Strings: Do You Have What It Takes to Start Your Own Business?
	By Valerie Ficke • Insurance Consultant Please note that information in this article may be time sensitive and specific to the date it was originally published. Please contact the author for updates to this information. More and more women have decided that the best boss is the one who stares at them in the mirror each morning. Based on reports from the United States Bureau of the Census and the National Foundation for Women Business Owners (NFWBO), between 1987 and 1999, the number of women-owned firms in the U.S. increased 103 percent. Also according to the NFWBO, there were 9.1 million women-owned businesses in the U.S. in 1999, representing 38 percent of all businesses. Although nearly half of those businesses are considered home-based, many fall outside the “traditional” career choices for women. Some of the fastest growing areas include manufacturing, agriculture, mining and construction. For many women, business ownership brings tremendous professional, personal and financial rewards. The freedom to create their own rules and set their own hours gives many women the flexibility and independence needed to juggle household and family responsibilities. Creativity can flourish because good ideas can often be tested and implemented without all of the lengthy approvals required in many large corporations. Financially, many women enjoy the opportunity to control all the profits a successful business can generate. Yet as attractive as the prospect can be, the dream of business ownership is not right for everyone. Launching a business from the ground up can take a tremendous amount of time, energy and self-discipline. Especially in the early stages, some businesses seem to run almost solely on dedication, perseverance and the owner’s own optimism. And there are very real financial hurdles to jump—turning a profit can take some time, and both the business and its owner must be provided for financially during that delicate start-up period. However, even these obstacles can be overcome with careful planning. Life insurance, for example, represents one vehicle women should explore. In addition to providing benefits to survivors, the cash value growth of life insurance is tax-deferred, which could be helpful in starting a business. A good agent can structure a plan to meet both short- and long-term goals of business ownership. If you find the prospect of owning your own business intriguing, here are some other early steps to consider: 1. Clarify your personal and career objectives. What are your reasons for wanting to start a business? What aspects of business ownership appeal to you most? Long-term, do you see your business as a sideline that you run alone from your home, or do you envision yourself as an emerging CEO with a large staff and several bases of operation? 2. Identify and refine your business idea. What talents and skills do you have that are most marketable? How large or small a market exists for this service or product? What is the competitive framework? Is there an “unmet need” you could fulfill or some other way you could set your business apart from the competition? 3. Research your idea. Look on the Internet or in the Encyclopedia of Associations (found in most libraries) for professional organizations in your selected field. Discuss your idea with others to obtain a better understanding of the pluses and minuses of the job. 4. Determine the funds needed for the business. Research start-up costs for computers, goods, equipment, daily operating expenses, and any other aspects of your business. Factor in regular living expenses you will need to cover until your business can turn a profit. 5. Test the concept. Talk to potential customers to determine interest in buying your product or service. Test several prices to determine what the market will bear for your business. 6. Develop a business plan. Sample business plans are available through various professional organizations, such as the National Foundation for Women Small Business Owners or the Small Business Administration (check their web sites). A number of reference books in local libraries also can provide background for drafting a solid business plan. 7. Secure financing. Discuss needs for additional financing with your financial advisor. Of course, once the business is launched, the real work begins. But you just may be one of the millions of women who find that business ownership makes the start of each working day more worthwhile than ever before. Valerie Ficke is a Financial Representative with the Northwestern Mutual Financial Network. She can be reached at 904-356-5155 or by Email at valerie.ficke@nmfn.com.
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