Entrepreneurial Empowerment

Welcome to the Small Biz Scoop!??

Our curated biweekly guide that provides in-depth financial explainers, practical tips and how-to guides, and timely financial and economic updates. Whether you're looking to master the art of strategic budgeting, explore digital marketing strategies, or navigate the intricacies of business financing, this newsletter has you covered. We're here to empower you with actionable insights that can make a real impact on your small business.?

This week is all about entrepreneurial empowerment. As we celebrate the successes of entrepreneurs, we’ll be diving into how business strategy can create a solid framework for your business and how you can take some time this tax season to improve your financial management. Moreover, we’re celebrating Women’s History Month with featured insights from our Women-Owned Business Study. These insights spotlight the role of women-owned businesses in shaping the entrepreneurial landscape. Keep reading for insights and strategies to empower you through your entrepreneurial journey.?

Business Strategy- What Is It and Why Does it Matter??

Success in any venture begins with having a rock-solid plan, and when it comes to business, that plan is your strategy. ?A well-crafted business strategy is your North Star – it tells everyone in your organization what the big picture is, so that they can make daily decisions that are aligned with what everyone else is doing. ?

Strategy is, at its core, an intentional limiting of choices. A business that tries to be everything to everyone, or that doesn’t know what its core competitive advantages are and tries to capitalize on too many different things will never be successful in the long haul. Your strategy narrows the focus of your company so that it can be competitive in the areas where you have the greatest potential for success.?

An effective strategy can be laid out on a single page of paper by answering 5 limiting questions. Some of these questions include:?

1. What is Success? ?

Ask yourself: What is the ultimate?goal of your business??What value does it bring to the lives of your customers and the community at large???

2. Where to Play??

Who are?your customers, and where can you find them? What sets your business apart from the rest? Once you pinpoint who your customer is, consider your industry, geography, and customer segments.?

Understanding your playing field helps you tailor your strategy to the specific challenges and opportunities present in that space.?

3. How to Win??

To succeed in business, you need to have a clear differentiator. This generally boils down to either lowest price, best customer service, convenience, uniqueness, or a combination of the above.??

Once you have identified your differentiator, lean into it! Reach out to new and existing customers through?digital marketing, referral strategies, or influencers and focus on how your differentiator meets the needs of your target customers.?

For the full list of questions to help set the framework for your business strategy, read more?here. ?

What the Tax Season Holds for Your Business?

Disclaimer: The information in this newsletter is provided for general information only and does not constitute tax advice.?

Tax season isn’t just a time to check boxes for the government–it’s a golden opportunity to take a closer look at your business’s financial health and to reflect on the past year, evaluate your revenue streams, and assess where your money is going.?

By actively engaging in the?tax preparation process, you can gain valuable insights into your business’s profitability, identify potential areas for improvement, and make informed decisions moving forward.?

Here are 3 ways your business can take advantage of the tax season:?

1. Taking Stock of Your Finances?

One of the primary advantages of tax season is that it forces business owners to confront the reality of their earnings and expenditures.?It’s a chance to ask important questions: How much did the business truly make this year? Were there unexpected windfalls or?unforeseen expenses? Did you stay within your budget, and if not, where did you deviate???

Taking stock of your financial history during tax preparation can be an eye-opening experience, providing insights into patterns and trends that may have gone unnoticed during the daily hustle.?

2. Getting Your Data in Order?

Small businesses often face the challenge of financial disarray throughout the year. However, the tax season encourages the implementation of better financial habits as tax preparation demands a meticulous examination of your financial records.?In organizing your documents and categorizing expenses, you begin to see where the weaknesses in your financial record-keeping lie.??

Establishing a system that streamlines your financial data not only eases the tax filing process but also sets the stage for more efficient day-to-day operations.?

3. Embracing Technology?

For small businesses that may not have embraced the latest financial technologies, tax season can catalyze change in this direction. Consider exploring user-friendly?accounting software?or mobile apps that can simplify record-keeping and financial analysis (often, small business owners are under-utilizing the software they already have. If that’s you, consider reaching out to your service provider for a free training session).??

These tools not only streamline the tax preparation process but also empower you to make informed financial decisions throughout the year.?

For an in-depth look at how your business can use tax season as a time to improve your finances, read more here. ?

Women-Owned Businesses Outpace Growth Across Categories Despite Lower Earnings Than Men-Owned Businesses?

The Biz2Credit Annual Women-Owned Business Study found 2023 to be a promising year for women-owned businesses.?

According to the National Women’s Business Council (NWBC) Annual Report, there are 14 million women-owned businesses that account for 39.1% of all businesses in the U.S. Additionally, women-owned firms created about half of all new businesses for the third year in a row. ?

Notably, a major finding of the report this year is the narrowing of the revenue gap between male-owned and women-owned businesses. Below are a few of our key findings:?

• Average Annual Revenue for women-owned businesses increased 15.5%, from $391,582 in 2022 to $452,446 in 2023. ?The average?revenue gap?in 2023, between women-owned and men-owned businesses?was $237,503, a? 34%?difference.??
• The Average Age of Business (in months) for women-owned businesses increased 11 months YoY but remains 10 months lower than men-owned businesses in 2023.?????
• Average Earnings (Annual Revenue – Operating Expenses) for women-owned businesses remained relatively unchanged ($87,953 in 2022 and $87,634 in 2023), while average earnings for men-owned businesses decreased by 3% (from $152,054 in 2022 to $147,522 in 2023)? ?

Check out the full report with other notable year-over-year changes, women-owned and male-owned comparisons, and other insights, here .?

Additional Links and Resources?

• Read more on our blog ?
• Follow us on Instagram and LinkedIn to stay up to date on the latest financial insights?
• See our Success Stories ?

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