Women-Owned Business Outlook 2017 on International Women s Day

Transcription

1 Women-Owned Business Outlook 2017 on International Women s Day with Anita Campbell (Moderator), Founder and CEO, Small Business Trends Dawn Fotopulos, The Hidden Profit Prophet Mojisola Rotibi, Founder and Managing Partner, BioVest LLC Rohit Arora, CEO, Biz2Credit Wednesday, Mar. 8, 2017 from 3-4 PM (EST)

2 Today s Presenters 2 Anita Campbell Moderator: Entrepreneur, Founder and CEO Small Business Trends (SmallBizTrends.com) Rohit Arora Speaker: One of the nation s leading FinTech experts CEO and co-founder of Biz2Credit.com Mojisola Rotibi Guest Speaker: Investor in disruptive healthcare technology Founder and Managing Partner of BioVest LLC Dawn Fotopolus Guest Speaker: Serial Entrepreneur and Award-winning Author Former VP of Citibank

3 3 Anita Campbell Founder, CEO and Publisher of Small Business Trends Frequent guest speaker and panelist at small business seminars and conferences Widely regarded as an authoritative voice on small business issues, Anita publishes several successful online media properties reaching more than 2 million small biz owners each month and 10 million annually She shares her voice on the OpenForum.com and is an invited contributor at the SBA.gov Community site, among others Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2017

4 4 Rohit Arora CEO and co-founder of Biz2Credit.com One of America s leading experts in FinTech and small business finance Frequently quoted on SMB topics in media publications Columnist for Forbes, CNBC, Inc. and the New York Daily News Biz2Credit named a Fast 50 company by Crain s New York in 2016 Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2017

5 5 Dawn Fotopulos Serial entrepreneur, real estate investor, hedge fund partner Award-winning author Accounting for the Numberphobic; A Survival Guide for Small Business Owners AMACOM Books Associate Professor of Business, The King s College, NYC Former V.P. Citibank Passionate about #SMB survival in any economy The Hidden Profit Prophet Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2017

6 6 Mojisola Rotibi Founder and Managing Partner of BioVest LLC Professional experience in various world markets provides her a diversified background in leadership and entrepreneurship skills Worked in South Africa -- country has become a hotspot for small business growth -- for 15 years while developing a strong international network after apartheid in 1994 Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2017

7 Discussion Topics 7 Growth of women-owned businesses in 2016 Gender gap in small business financing Funding available for women small business owners Tips for improving business credit scores Small business initiatives for women entrepreneurs Banking developments Other topics related to entrepreneurship and small biz growth

8 Realities for Women Business Owners 8 More women graduate from college than men (Source: White House) Nearly 40 percent of women (ages 25-34) have at least a Bachelor s Degree More than 10 percent of women in this age bracket have some graduate school experience Women-owned businesses are an important source of job-creation in the U.S. economy The Guardian Small Business Research Institute projects women-owned businesses will create 5 million new jobs by 2018 One-third of the 15.3 million total new jobs anticipated by the Department of Labor. An estimated 9.1 million women-owned businesses generate more than $1.4 trillion in revenue Number of women-owned firms has increased 68% since 1997 Access to capital has been a challenge, but situation has improved since startup costs of all types of businesses are low at this point in time

9 9 Anita Campbell, Entrepreneur & Founder of Small Business Trends There are nearly 9.1 million women-owned enterprises that employ nearly 7.9 million workers and generate over $1.4 trillion in revenues. Between 1997 and 2014, the number of women-owned firms grew at 1½ times the national average. Revenue and employment growth among companies owned by women top that of all other firms except the largest, publicly traded corporations. On average over the period, there has been a net increase of 591 women-owned firms each day with an average of 1,288 per day during the past year. Since 1997, the growth in the number and economic contributions of firms owned by women of color is remarkable. Comprising just 17% of women-owned firms 17 years ago, firms owned by women of color now account for almost one-third(32%) women-owned firms in the U.S. - American Express OPEN Women-Owned Businesses Report 2014

10 10 Anita Campbell, Entrepreneur & Founder of Small Business Trends According to Biz2Credit data, the states with the highest numbers of women applying for small business funding are: 1. California 2. Texas 3. New York 4. Georgia 5. North Carolina

11 About the Biz2Credit Women in Business Study 11 Fourth year Biz2Credit has done this study Study was based on data collected from 25,000 loan applications 71% male-owned companies 29% women-owned companies Findings are based on data on approximately 7,500 female entrepreneurs who requested funding on the Biz2Credit platform in 2016

12 This year s Women in Business Study uncovered some good, as well as some continued challenges 12 Annual Revenues, Profits, and Credit Scores of Women-Owned Businesses Improved in 2016 Study of 25,000 Companies Finds Average Revenues of Women-Owned Businesses Increased 47% in a Year-to-Year Comparison Average annual revenues and loan approval percentages of women-owned companies increased Male-owned companies generated 52% more revenue than female entrepreneurs Two percent more women applied for funding in 2016

13 Biz2Credit s Annual Women in Business Study 13 Annual Revenues Average annual revenues of women-owned business jumped to $210,000 in 2016, up from $142,804 in 2015.

14 Biz2Credit s Annual Women in Business Study 14 Annual Earnings Average earnings rose to $117,064 in 2016, up from $72,529 in Male-owned companies had 61 percent higher average annual earnings Revenues and earnings climbed significantly for women-owned businesses last year. Like their male counterparts, female entrepreneurs generally thrived in Favorable economic conditions and experience gained from being in business contributed to their success. - Rohit Arora, CEO of Biz2Credit{

15 Biz2Credit s Annual Women in Business Study 15 Average Loan Size Average Loan Size for women-owned businesses was $99,009, compared to $105,172 for male-owned companies. It is encouraging that women entrepreneurs are acquiring credit at nearly the same dollar amount of their male counterparts. This indicates a commitment to growth of their companies. - Rohit Arora, CEO of Biz2Credit

16 Environment is Ripe for Women Entrepreneurs 16 Push for diversity and inclusion Companies must use femaleowned and operated businesses to fulfill their procurement Worldwide, more women are actively pursuing entrepreneurship

17 Importance of Education 17 For female entrepreneurs, education is key Does not have to be formalized What it is that you want to do? Participate in short courses, engage in webinar Network as much as possible Having a vision is just not enough

18 Be a Leader 18 Have an appetite for risk Identify your strongest skill sets Apply what you have learned Managing and growing your business is just as important as starting it Develop an advisory board Vision is not enough -- lead by example Business development/relationships MATTER

19 #getthemostfromyouraccountingpro 19 If this is the problem: I m killing myself and I m not making any money Grow my business! is NOT the answer Don t scale losses; scale profit and cash flow

20 #getthemostfromyouraccountingpro 20 3 Step Plan 1. #Change Your Mindset 2. #Know Your Numbers 3. #Ask Your Accounting Pro

21 #changeyourmindset 21 DIY Bookkeeping is a Bad Idea - improve your odds Accounting is not a done for me service Your accounting pro is not a number cruncher; they re your business therapist. My client pays for my hands and they could have my brain cells, too. They never listen Don t drive with your eyes closed.

22 #knowyournumbers 22 Numberphobic? You re not alone. 3 Key Questions You Have to Answer: Making Money - Net Income Statement Enough Cash - Statement of Cash Flows Building wealth - Balance Sheet

23 #askyouraccountingpro 23 Monthly Statement Review Do you receive monthly statements? Do you read them? Do you understand what they are saying? Do you do anything differently afterward? HUGE missed opportunities/ blind to risk We can t wait to see our results each month. It s like a game!

24 #askyouraccountingpro 24 What if you could improve cash flow with existing customers without added work and complexity? Poor cash flow Lower profit Shrinking net worth Not problems; symptoms Your most important collaborator

25 Biz2Credit s Annual Women in Business Study 25 Annual Credit Scores Average credit scores for women-owned companies dropped five points in 2016 to 595. At the same time, average credit scores were 17 points higher for businesses owned by men (612) in "The drop in credit scores might initially seem surprising, but in a way, it's an encouraging figure. Borrowers who cautiously refrained from borrowing money for expansion or capital improvements re-entered the credit markets. - Rohit Arora, CEO of Biz2Credit

26 A few things we d like to see change 26 Male-owned companies generated more than 60% earnings Average male business revenue in 2016 was $363,414 Average earnings for businesses owned by men were $117,096 Average credit scores of women entrepreneurs dropped slightly in 2016 Study found business credit scores were 17 points higher for men (612) Women-to-men borrowing ratio: 29 percent for women; 71 percent for men Average Age of Business: Female-owned = 35 months vs. male-owned = 44 months Overall, the figures show that 2016 was a strong year for small businesses -- revenues were up significantly. However, there is still a large gap between the sales of male-owned and female-owned companies. Biz2Credit CEO Rohit Arora Disclaimer: This presentation is for internal purpose only. Copyright@Biz2Credit 2015

27 Tips for improving your credit 27 Avoid revolving credit Pay your debts in full Prioritize making sure that other people pay you! Review your business credit reports quarterly Establish a company credit card, use that card for your business expenses and pay it off in full frequently Pay bills in advance if possible Use BizAnalyzer tool to monitor and improve your creditworthiness Operate a lean business For more help: Use Biz2Credit s BizAnalyzer and Virtual CFO to monitor the financials of your business

28 Challenges Small Business Owners Face 28 SMALL BUSINESS OWNERS LACK OF TRANSPARENCY BANKS & OTHER LENDERS What product is best for me? Where do I go? Am I getting the best rate? Process too cumbersome How do I find good borrowers? How risky are they? How do I retain customers? How do I manage declines? Process too cumbersome

29 How Biz2Credit Can Help 29 SMALL BUSINESS OWNERS MARKETPLACE BANKS & OTHER LENDERS Online quicker simpler lower risk

30 How long does the Biz2Credit process take? 30 Create an account for free in just a few minutes! Complete application online Select the best product and finish application online (Help from a Loan Specialist is available) Approvals within 24 hours Funding within 72 hours No need to gather tons of documentation or fill out paper forms at a number of banks

31 Advantages 31 Less time to apply Less time talking to lenders Less time waiting to get the loan Reduce the number of credit pulls- which Review a range of loan options that are suited to your needs Short-term Working Capital Equipment Financing Commercial Real Estate Financing SBA Loans through Banking Partners

32 32 Thank you! Call toll free: Disclaimer: This presentation 2017 is for internal purpose only. 2017