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Women in Business
Announcer: Your Worth is brought to you by GenWorth Financial. Visit them at genworth.com.
Jackie Chakirelis: You're listening to "Family Matters" with Caroline and Jackie. I'm Jackie.
Caroline Kruse: And I'm Caroline. Well you know, Jackie, we cover a lot of topics here on "Family Matters." But we hear from so many of our listeners, especially our female listeners, they really tell us that they want to know how to start their own business.
Jackie: Well, sure, because there is flexibility. It's really a good thing for a lot of families.
And they also want to know where they should get the money to launch that business. So joining us with that answer and more is Angie Kasi. Angie currently holds the position of senior relationship manager with the Key Bank's Cleveland Business Banking Team. She works with businesses and organizations ranging from $1 million to $10 million in revenue, so that's not us, Caroline.
Angie, welcome to "Family Matters".
Angie Kasi: Thank you.
Jackie: So when starting a new business what are some of the key things women should be focused on?
Angie: I would say women should be focused on making sure that they have the proper arrangements for their business. And what I mean by that is they need to make sure that they select the best legal structure for their business, whether it be as a sole proprietor, setting up a corporation -- and there are different types of corporations -- creating an LLC, that sort of thing, as well as making sure that they get the proper accounting systems in place.
A lot of clients that I work with use QuickBooks or they have a CPA that will help them or other types of accounting packages, depending on what their actual industry is. And last but not least, they really should be making sure that they set up their banking accounts so that they don't have commingling of funds initially.
And so in order to do those things, really a top priority for women should be creating a team of advisors. That includes the attorney who would help them with the best legal structure. A CPA, as I mentioned, can advise them in terms of accounting systems or at least make sure that they have got the right thing in place initially, and obviously a banker to assist with getting the banking account set up.
And it could also include having others who might have expertise about their particular business or their business model. And last but not least, I would say when creating that team, it's really important to make sure that they feel comfortable with working with those folks and that they get the right advice.
Caroline: Well, Angie, in terms of financing, what are the key elements to creating a great business plan?
Angie: Well, business plans can be tailored for different audiences. I get this question a lot because people really get overwhelmed by it.
I would say the venture capitalists or angel investors, those types of audiences are looking for specific information when evaluating plans. Banks are looking for some of the same and other information. Then business owners can create the plan to serve really as an ultimate roadmap and chart their progress and to stay on track.
So that being said, the size of a plan can vary depending on who is going to be reading it, based off of those factors. But from the bank's perspective, we are really interested in just a few vital components. We want to know what the product or service is. What is the target market? How will your business compete successfully for that market? How are you going to make money and in turn repay any financing that you might be getting?
I've seen really great business plans that were 10 pages or less. It doesn't have to be huge. I think a lot of people get caught up on that. But really a good basic rule of thumb is that anyone should be able to pick up that business plan, read it, and get a basic understanding of what you're doing. If you manage to do that, then you're right on target.
Jackie: There is so much to think about when you are starting a business. Are there programs available that can help women learn the fundamentals of starting up a new business?
Angie: Yes, there are. One of the greatest resources that's out there is the Small Business Administration. They have offices set up all around the country that have resources to assist people who are interested in starting new businesses.
And part of that is SCORE. It's a resource organization that works in partnership with the SBA to help mentor and assist new business owners. They are usually people who have been in business or retired executives who have actual business backgrounds. So they really know their stuff and know what they're talking about.
Other programs that are available are through local community development organizations, as well as a lot of colleges and universities have created business centers or through their business schools have resources available. Once again, you might have mentors or people who have worked in business that can work with new business owners. So I would recommend definitely checking those out.
And also the local Chambers of Commerce are also a good place to find out what may be available in different areas. And lastly a lot of financial organizations like Key have created programs that are designed to help women and have educational resources, networking, customized solutions and access to capital.
Jackie: Angie, what are some of the biggest risks associated with starting a new business?
Angie: I would say one of the biggest risks -- and this just has to be the mindset of an entrepreneur -- is really putting everything on the line if you are going to be taking out debt for a new business. You really need to make sure that A) you're comfortable with that as you go into it and then make sure that you have a fallback position in terms of financial security if things don't go the way you anticipate. That could be another source of income or savings to cover your living expenses.
Another of the biggest risks I would say that is associated with a new business is really inadequate preparation. That goes back to what I originally mentioned in terms of making sure that you are organized properly from a legal standpoint, from an accounting standpoint, and that as you move forward you have allocated enough financial resources.
A lot of times what we deal with is we see people who have gotten started in business, maybe used personal credit cards and other things like that and didn't realize exactly how much it was going to take, how much money it was going to take to get their business off the ground or keep moving in the direction that they would like it to go.
And they run out of those resources. Then they try to come to us at that point and oftentimes we can't help them.
So I think just really making sure that those types of things have been identified from the outset, which once again a good business plan will help do, can help mitigate those risks.
Jackie: And quickly, Angie, what are some new business financing options to consider?
Angie: For new businesses I would say really looking to friends and family is always a great thing to do. If you can go to someone and ask them for a loan or just to have the funds, that is a great thing. As well as SBA is another great option, which banks work in partnership with.
Caroline: Well, Angie, thank you so much for joining us with this important information.
Angie: Thank you.
Caroline: And if you want more information on financial planning or investing, you can visit our website at familymattersradio.com.
Announcer: Your Worth has been brought to you by Genworth Financial. Visit them at Genworth.com.
Announcer: Your Worth is brought to you by GenWorth Financial. Visit them at genworth.com.
Jackie Chakirelis: You're listening to "Family Matters" with Caroline and Jackie. I'm Jackie.
Caroline Kruse: And I'm Caroline. Well you know, Jackie, we cover a lot of topics here on "Family Matters." But we hear from so many of our listeners, especially our female listeners, they really tell us that they want to know how to start their own business.
Jackie: Well, sure, because there is flexibility. It's really a good thing for a lot of families.
And they also want to know where they should get the money to launch that business. So joining us with that answer and more is Angie Kasi. Angie currently holds the position of senior relationship manager with the Key Bank's Cleveland Business Banking Team. She works with businesses and organizations ranging from $1 million to $10 million in revenue, so that's not us, Caroline.
Angie, welcome to "Family Matters".
Angie Kasi: Thank you.
Jackie: So when starting a new business what are some of the key things women should be focused on?
Angie: I would say women should be focused on making sure that they have the proper arrangements for their business. And what I mean by that is they need to make sure that they select the best legal structure for their business, whether it be as a sole proprietor, setting up a corporation -- and there are different types of corporations -- creating an LLC, that sort of thing, as well as making sure that they get the proper accounting systems in place.
A lot of clients that I work with use QuickBooks or they have a CPA that will help them or other types of accounting packages, depending on what their actual industry is. And last but not least, they really should be making sure that they set up their banking accounts so that they don't have commingling of funds initially.
And so in order to do those things, really a top priority for women should be creating a team of advisors. That includes the attorney who would help them with the best legal structure. A CPA, as I mentioned, can advise them in terms of accounting systems or at least make sure that they have got the right thing in place initially, and obviously a banker to assist with getting the banking account set up.
And it could also include having others who might have expertise about their particular business or their business model. And last but not least, I would say when creating that team, it's really important to make sure that they feel comfortable with working with those folks and that they get the right advice.
Caroline: Well, Angie, in terms of financing, what are the key elements to creating a great business plan?
Angie: Well, business plans can be tailored for different audiences. I get this question a lot because people really get overwhelmed by it.
I would say the venture capitalists or angel investors, those types of audiences are looking for specific information when evaluating plans. Banks are looking for some of the same and other information. Then business owners can create the plan to serve really as an ultimate roadmap and chart their progress and to stay on track.
So that being said, the size of a plan can vary depending on who is going to be reading it, based off of those factors. But from the bank's perspective, we are really interested in just a few vital components. We want to know what the product or service is. What is the target market? How will your business compete successfully for that market? How are you going to make money and in turn repay any financing that you might be getting?
I've seen really great business plans that were 10 pages or less. It doesn't have to be huge. I think a lot of people get caught up on that. But really a good basic rule of thumb is that anyone should be able to pick up that business plan, read it, and get a basic understanding of what you're doing. If you manage to do that, then you're right on target.
Jackie: There is so much to think about when you are starting a business. Are there programs available that can help women learn the fundamentals of starting up a new business?
Angie: Yes, there are. One of the greatest resources that's out there is the Small Business Administration. They have offices set up all around the country that have resources to assist people who are interested in starting new businesses.
And part of that is SCORE. It's a resource organization that works in partnership with the SBA to help mentor and assist new business owners. They are usually people who have been in business or retired executives who have actual business backgrounds. So they really know their stuff and know what they're talking about.
Other programs that are available are through local community development organizations, as well as a lot of colleges and universities have created business centers or through their business schools have resources available. Once again, you might have mentors or people who have worked in business that can work with new business owners. So I would recommend definitely checking those out.
And also the local Chambers of Commerce are also a good place to find out what may be available in different areas. And lastly a lot of financial organizations like Key have created programs that are designed to help women and have educational resources, networking, customized solutions and access to capital.
Jackie: Angie, what are some of the biggest risks associated with starting a new business?
Angie: I would say one of the biggest risks -- and this just has to be the mindset of an entrepreneur -- is really putting everything on the line if you are going to be taking out debt for a new business. You really need to make sure that A) you're comfortable with that as you go into it and then make sure that you have a fallback position in terms of financial security if things don't go the way you anticipate. That could be another source of income or savings to cover your living expenses.
Another of the biggest risks I would say that is associated with a new business is really inadequate preparation. That goes back to what I originally mentioned in terms of making sure that you are organized properly from a legal standpoint, from an accounting standpoint, and that as you move forward you have allocated enough financial resources.
A lot of times what we deal with is we see people who have gotten started in business, maybe used personal credit cards and other things like that and didn't realize exactly how much it was going to take, how much money it was going to take to get their business off the ground or keep moving in the direction that they would like it to go.
And they run out of those resources. Then they try to come to us at that point and oftentimes we can't help them.
So I think just really making sure that those types of things have been identified from the outset, which once again a good business plan will help do, can help mitigate those risks.
Jackie: And quickly, Angie, what are some new business financing options to consider?
Angie: For new businesses I would say really looking to friends and family is always a great thing to do. If you can go to someone and ask them for a loan or just to have the funds, that is a great thing. As well as SBA is another great option, which banks work in partnership with.
Caroline: Well, Angie, thank you so much for joining us with this important information.
Angie: Thank you.
Caroline: And if you want more information on financial planning or investing, you can visit our website at familymattersradio.com.
Announcer: Your Worth has been brought to you by Genworth Financial. Visit them at Genworth.com.
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