How Women Manage Business Finance
What does that tell us about how women view finance and, more importantly, how we manage our business finances?
Belinda Fuchs of Own Your Own Money says that often women have often missed out on learning about financial management as they grew up. That’s despite the fact that most women have to manage the finances for the family once they are married.
The other thing is that women don’t earn as much as men and so can’t be expected to save as much. They have less financial flexibility than men. That obviously impacts on how much money that have behind them when they want to start a business or apply for a business loan.
So, women start ‘behind the eight ball’ when it comes to finance. Often we just don’t have the understanding that men do.
The next problem comes when we start out in the business. How many women do you know began by offering their services for free? How many do you know who are seriously under pricing their services even now? Women, more than men, seem to have difficulty in valuing their services and that makes it so much harder to make a profit.
Home based and small businesses often struggle to make an income in their first couple of years and this is sometimes where you’ll see women’s lack of financial education really show. Apart from mixing personal and business finances into a blended mess that is hard to track, many women have no idea how to create and maintain good financial records. Tax time is pure stress and drama.
The good news is that once we get ourselves sorted out, we are focused and inventive in business. We are used to working with small budgets and that has taught us to look for less obvious ways to achieve our goals. We have natural networking and entrepreneurial skills that help drive our businesses further or into new directions than our male counterparts.
When women manage business finance properly it turns an average business into a successful one. Make sure that you have good reporting systems in place and that you manage them properly. If this isn’t your strength, outsource it. Never be held back because you lack knowledge or experience. If you don’t have it, find someone who does.
TAGS: women , women’s finances , business finance , small business finance , budgets ,