Lending Library

We have around 773,000 franchise establishments in this country—but what’s the draw for small business owners?

Let’s look at it this way: say, for instance, that you’re a novice entrepreneur. Would you rather start a business from scratch or place your bets on an established operation? Many people just starting out would choose the latter. 

But franchises aren’t only for budding entrepreneurs. They’re for everyone: people looking to make more money, established entrepreneurs who want another source of income, or retirees who want to contribute to the workforce. Anyone can benefit from all that franchises have to offer. 

Advantages of buying a franchise.

Building a business from the ground up takes hard work and time. You have to set up everything yourself—your own processes, protocols, and procedures. You’re in charge of everything, and that comes with great responsibility: not only do you own every win, you also own every loss. And with this from-scratch model comes many hours of trial and error. 

A franchise opportunity gives you all the advantages of a business without having to start it yourself. You get the chance to utilize all the hard work and established processes that someone else has developed, which minimizes your risk. And the franchise’s whole package gets handed to you: a proven business model, brand recognition, a stream of customers, and continual support. 

But every franchise is not the same. If you’re considering buying a franchise, here’s what you need to look for in an establishment:

• Industry growth potential. Look beyond the current state of the industry and examine future projections. Will the industry continue to grow or remain stagnant?
• Strong support system. What type of ongoing support—if any—does the franchise provide?
• Good management. Make sure the franchise has the right strategies, plans, systems, and processes in place. 
• Adequate earnings. Consider if the projected income you will receive matches what you want or need. 
• Satisfied franchisees. Talk to other franchise owners to gauge their level of satisfaction. 

Best franchises for under $10k.

Want to be a business owner but don’t want to break the bank? Read on for our top franchise picks that you can acquire for $10k or less. 

1. Momleta

This franchise is a great opportunity for fitness-passionate moms. If you love staying in shape and want to help other moms get in shape, Momleta may be the franchise for you. 

Unlike other sports franchises, Momleta doesn’t require a startup investment of well over $10,000—initial fees fall between $4,000–$7,000. This franchise is also under the Baby Boot Camp brand and includes several programs and fitness classes. 

2. Social Owl

If you enjoy working from home and would love to help small business owners succeed, you could consider opening a SocialOwl franchise. SocialOwl makes it possible to start your own social media marketing business. This franchise is unique because the model includes a SaaS (software as a service) starter pack. 

With this franchise, you’d work with local businesses to sell social media packages. Access to training, marketing materials, and your own branded website are all included for low investment fees of $179–$249 per month. Average ROI is also worth noting: according to SocialOwl, you can make around $300 a month per client. 

3. Building Stars

A Building Stars franchise will give you all the tools you need to build a successful cleaning business. They also offer training and ongoing support programs to help you sustain your franchise. 

Their focus is on commercial cleaning solutions for office buildings—a $117 billion industry that’s continuing to grow because of the COVID-19 pandemic. The total investment required for this opportunity ranges from $2,245–$8,295. 

4. Jazzercise

Another great opportunity for fitness buffs is Jazzercise. Their program makes working out fun and exciting: their dance-based, full-body routines will get you moving to popular music and help you whip others into shape. 

After applying to join the program, you’ll receive training over a 5-week period. At that point, you can choose to become a Jazzercise instructor or a small business owner. The total investment to own your own franchise falls between $2,415 and $3,200. 

5. Complete Weddings and Events

Complete Weddings and Events is the largest event-services provider in the United States. If you enjoy organizing events, planning, and making schedules, this may be the franchise for you. 

It’s also worth noting that the wedding industry took a dip due to the pandemic. Pre-COVID, the industry generated $72 billion per year. But since then, it’s taken a tremendous hit—in 2021, it’s expected to generate $51.2 billion.

Now that the country is reopening, however, people will be planning more in-person weddings and other celebrations—and they’ll no doubt need the help of professional event planners. 

Complete Weddings and Events will give you all the training and ongoing support you need. They’ll also teach you how to price your services and hire other professionals, like photographers, DJs, and videographers. Startup costs are around $10,000. 

Franchises under $10k in 2024.

If you want the freedom of entrepreneurship but cringe when you think of everything that goes along with it—like building a business from scratch, growing your company, and marketing your brand—then you’ll probably benefit from a franchise. And if you can get in for $10k or less, your risk decreases even more. 

Before you buy a franchise, weigh all the pros and cons and consider if it’s worth it for you. $10k may not seem like a lot of money to some, but it’s unquestionably a substantial amount. And you want to maximize your investment regardless of how much it costs. 

When you choose a franchise, ensure that your chosen franchise model is a stable, quality organization who will offer you ongoing support—not an establishment that only reaches out to you when it’s time to collect your franchise fees. 

$10k may not be enough to buy into one of the most popular franchises, like McDonald's, Great Clips, or Anytime Fitness. But it’s enough to purchase a good franchise that will teach you, train you, and bring you a positive return on your investment. 

Balance sheets make up the core of bookkeeping. These financial records track every credit or debit for your business, noting them under assets and liabilities. Assets refer to anything that is useful or has value to the business (like cash on hand or inventory). Conversely, liabilities refer to anything that will cost the business money in the long or short term.

Tracking liabilities is important for any business that wants a clear picture of its cash flow and company value. This guide will discuss what liabilities are in greater detail and how you can record them. 

What’s the difference between a liability and an expense?

A common mistake in bookkeeping is that your liabilities are the same as your costs—but this isn’t the case. Liabilities are used to acquire assets for your business. Meanwhile, expenses are payments for items or services without physical value. 

Consider the difference between a business mortgage payment and an electric bill. Paying the mortgage each month increases your asset: equity on the building or land. However, an electric bill merely covers the service of electricity used within that period. You don’t get to keep the electricity or potentially resell it. 

In double-entry bookkeeping, each liability is also listed as an asset so the business owner can track the value of the business. Their business equity can grow by paying liabilities. 

Short-term and long-term liabilities.

Along with sorting expenses and liabilities on your balance sheet, you will need to differentiate between long- and short-term liabilities. Simply put, long-term liabilities are obligations that the business expects will continue for over a year. These can include loans and mortgages. 

Short-term liabilities (also called current liabilities) are likely to get paid off within a year. They cover payroll tax and sales tax payable, along with the monthly payments you make on loans and mortgages. 

Documenting both short-term and long-term liabilities can help business owners to better understand their equity growth over the course of a year. 

What are some examples of liabilities in bookkeeping? 

Businesses have liabilities in all shapes and sizes. There are long-term liabilities that companies keep on their records for years, as well as short-term liabilities for new equipment. A few examples of liabilities include:

• Wages payable: The amount of accrued income that employees have earned. If a company pays its employees every 2 weeks, this section will change dramatically throughout the month. 
• Interest payable: When you buy an asset and owe interest on your payments, you record the outstanding balance as a liability. 
• Accounts payable: Unpaid invoices that have been submitted to your business. 
• Dividends payable: The amount owed to shareholders who have stock in the company. This often includes a percentage of a business’s profits each year or quarter.   

Every business will have liabilities in some form. Even if you operate as a sole proprietor from your home, you will likely have costs related to equipment, materials, and a mortgage or rent. If you can build up good habits for tracking these costs on a small scale, you can grow your business without getting overwhelmed by your bookkeeping. 

Is it time for a career change? Do you have a unique skill set in a niche field but want to expand your knowledge into something new? 

Many entrepreneurs started out in their fields and saw opportunities outside of the norm. They made dramatic changes in their career plans and took risks to enter new and lucrative markets. This could be you. 

Below are a few unique business ideas that rise to customer demand. Get inspired by the entrepreneurs who turned their off-the-wall ideas into big business, and see if any of these concepts would work for you.

1. Dog event planning.

Is your dog the apple of your eye? Do you want to help others celebrate their pooches and spoil them in the most creative ways possible? Consider getting into canine event planning. 

A few years ago, event planner Niki Sohrabkani took on a client who asked her to throw a party for 20 dogs and their pet parents. Sohrabkani had such a good time that she developed her own business to throw parties for pets. Today, the party planner hosts more than 30 events a year, from “pooch pool pawties” to “Howl-o-ween bashes.” 

Sohrabkani really leans into the puppy theme, catering for humans as well as the furry attendees. She always brings some “pawsecco” and leads games like “musical paws.” 

The parties are popular with high-end clientele who want to spoil their pets. Sohrabkani’s attention to detail means her events get featured across Instagram, attracting additional clients and helping her grow her unique event-planning business.

2. Online dating consulting.

Countless people worldwide have downloaded apps like Tinder, Coffee Meets Bagel, and eHarmony to meet their next potential love matches. However, the world of online dating can be just as fraught as traditional meet-ups, which is why some romance experts have turned their passions for helping friends get hitched into lucrative businesses. 

Sameera Sullivan is a New York City matchmaker and runs a service called Lasting Connections. Sullivan offers online dating consultants and assistance to help people meet potential significant others. Lasting Connections is on the high end of the online dating consultancy spectrum, charging $45,000 for a year of in-depth coaching or $6,500 for 3 months of a virtual coaching program. Some coaches offer by-hours services at $99 each. 

An online dating coach will help you create a profile—and some will choose photos and write your bio for you. Some services will filter matches for you (so you don’t have to see any rude or gross messages) and help you dress for upcoming dates. 

If you have a matchmaking knack, consider taking your business digital by getting into consulting. 

3. Edible insect production.

Are you looking for a low-calorie source of protein that doesn’t harm the environment? Consider cricket protein, which uses food-grade insects to provide post-workout snacks for gym-goers across the world. 

Insects are considered an environmentally-friendly food source because they require less space and resources to grow. Compared to how much land and water products like wheat and beef take up, insects require much less and produce a yield much faster.  

As more people realize the health benefits of eating insects, entomophagy startups are flourishing. Companies grow and sell everything from trail mix and protein bars to restaurant-grade scorpions and ants for Michelin-starred restaurants.

Get to know more about these “entopreneurs” and the niche they fill.    

4. Modern day funeral planning.

The funeral as we know it is changing. People no longer want their loved ones crying over their bodies in a church or stodgy funeral home. More people are requesting celebrations of life and unique burials that provide memorable send-offs for families. 

Alison Bossert, a celebration-of-life planner in Los Angeles, shared how she threw a “Memorialpalooza” for a client in 2019. The client, Jerry Seinfeld’s personal manager, was celebrated with 300 guests at the Sony Pictures Studios—there was catering, gift bags, a line-up of speakers, and even Seinfeld himself as the closer. This event was meant to be more of a party to honor the dead rather than a somber affair. 

Consider stepping into the world of modern-day funeral planning as more people request unique burials, parties, holograms, and other special ways to celebrate life.

5. Snow shipping

Do you live in a place with too much snow and want to get rid of it? You’re not alone. The company Ship Snow Yo will send 20 lbs or 50 lbs of real snow across the country to give you a winter wonderland wherever you are. Send snow to your relatives in Florida who are bragging about the mild winters, or order a snowman kit for yourself. 

This company highlights how you can take a seemingly undesirable resource and turn it into a valuable product. 

Every successful business starts with an idea.

These business owners prove that it doesn’t matter what your business idea is. If you have a strategic business plan and know-how within your industry, your concept can thrive. Take the first steps today to turn your off-the-wall idea into a success. Check out our funding opportunities to get your small business off the ground. 

Starting a business is expensive and entrepreneurs are always looking for ways to save money. Here are some free resources and services that will help you grow as a business and a businessperson.

US Small Business Administration.

Some of the best free resources for small business owners in the United States are actually offered by the government–the US Small Business Administration (SBA) has tips, articles, studies, and even granting opportunities. The agency’s business plan worksheets are fantastic for those just starting up or those seeking another round of funding. For those with more experience, the administration offers free business counseling for entrepreneurs at any stage. The granting and loans feature of the SBA should merit special consideration–it is likely your business is eligible for some sort of funding offered by the SBA.

Coursera and other free online courses.

Any entrepreneur will tell you that education never stops, even after you receive an MBA. We live in the age of the MOOC–that is, “massive open online course.” Institutions from MIT to Stanford offer free courses online, and they’re open to anyone. Of course, the classes aren’t typically credited, but the information is often from real professors. Thousands of business courses are available at Coursera, Udacity, edX, and other MOOC platforms. Most courses consist of video lectures and worksheets. Because of the online community aspect of the digital classrooms, you may also find yourself networking with other entrepreneurs across the globe.

Networking and meetup.

No matter what your business, networking is critical. You should seek out gatherings of entrepreneurs–the SBA and your local Chamber of Commerce can be great resources to find out about small business owner happy hours and other get-togethers. An easy online resource for finding ways to meet other entrepreneurs in real life is Meetup–there is likely a whole group dedicated to entrepreneurship in your city. You can even set up your own gatherings through Meetup, Eventbrite, or Facebook.

Google Maps

Having a curated presence on Google Maps is crucial for any physical business. You can edit your business’s contact page through Google–you can insert images and update contact information. It is important that this contact information on your Google Maps page–your phone number, website, and address–is up-to-date. Google Maps also has a Click To Call tool that you want to ensure is accurate. This tool enables users taking advantage of the popular Near Me feature, and it is a way to drive customers to your door who didn’t even know of your existence before looking you up on Google Maps.

Google My Business.

Similar to updating your information on Google Maps, you should complete a page on Google My Business. This page ensures that anyone searching for your company receives accurate information. Beyond addresses and phone numbers, you can input your hours and add information like menus. Having a complete Google My Business page can give you an SEO (search engine optimization) advantage–Google ranks websites with complete Google My Business profiles higher in web searches.

Yelp for Businesses.

Love it or hate it, Yelp is a force in the small business universe pretty much no matter where you are. The company has options meant to allow participating small businesses to stand out, though. Yelp for Business Owners allows you to highlight good customer reviews, reach out to previous customers, engage new ones, and offer special deals to Yelp users.

WordPress for websites and blogs.

Even if you don’t consider your business to be a web-based company, it is required to have an online presence. If you don’t have the budget for a web designer right now, a great option is WordPress. It is intuitive to use and the free templates are handsome–it is also a great way to nab a cheap domain name. You can build a simple website for free, and if you want to go a step further, e-commerce and other small business resources are available from WordPress for inexpensive annual fees.  

Gmail

If you already have an email account through Gmail, it might seem too obvious to mention that Gmail is one of the best free resources available for small business owners. It offers 15 gigabytes of free storage and is deeply ingrained with other business features from Google. You can easily label, filter, and prioritize your email inbox, and Gmail allows you to send out pre-written responses to commonly asked questions. For marketing and outreach, you can make lists of your contacts–such as “return customers” or “potential new clients”–and push out your messaging tailored specifically to these lists.

Google Drive for sharing with a team.

Once your Gmail account is set up, you should take a deep dive into Google’s G Suite options. Google’s Calendar is legendary for its ability to be shared, and Google Hangouts allow you to set up video calls easily. It may seem basic, but Google’s Docs, Sheets, and Slides features are some of the most powerful free business tools out there–they allow you to create documents, spreadsheets, and presentations and then share them with anyone you want. Again, it all comes with 15 gigabytes of free storage.

Doodle for scheduling.

The name is childlike, but Doodle is a free and accessible tool for scheduling. This tool is especially useful if you have a team of, say, busy freelancers who barely have an hour to spare. You can request the availability of the entire team for a few weeks at a time. Even better, the respondents can fill out a Doodle within a few seconds–no sign-ups or logins are required.   

Your state's small business agency.

Along with the SBA, your state government likely has a massive number of free resources for small business owners–your tax dollars at work. Each state has a small business development center, sort of like a miniature SBA. Along with letting business owners figure out what sort of permits or registrations are required, these departments often have educational information or funding opportunities. The SBA has links to these agencies in every state.

SCORE educational and mentorship resources.

The nonprofit SCORE has a bunch of resources for small businesses across the country, from online workshops and podcasts to free mentorship opportunities. Especially if you’re a budding entrepreneur, gathering information from the trifecta of the SBA, your state small business agency, and SCORE should be one of your first steps.

BPlans.com for business plan templates.

Business planning documents are necessary for several reasons. Any bank or grant opportunity will want to see this paperwork. On a more fundamental level, business planning documents are good for you to see and work through what your company’s future looks like. BPlans.com has a server full of business plan templates, all for free, that span dozens of industries. The website also has other helpful features, like how to develop your elevator pitch.

Crowdfunding platforms

Depending on the nature of your business, crowdfunding platforms like Kickstarter or Indiegogo can be a great way to start raising capital. You can essentially start selling a product before your inventory is stocked. These platforms are free in the sense that it is free to set up–they will take a fee from the money raised. If your business is more content-based–if you are a blogger, artist, or subscription box creator, for instance–take a peek at Patreon, too.  

Canva for graphic design.

Especially in this age of websites, graphic design is in high demand. If you don’t have much in your budget, Canva is a free option that is easy-to-use even for the technology-impaired. The service offers templates for digital graphics like Facebook cover images or email graphics, as well as printable options like flyers or posters. Other free graphic design programs include Spaces, which makes creating logos a snap, and Piktochart, fantastic software for creating fetching infographics or flowcharts.

Mailchimp for email marketing.

Once you’ve created your graphics, you’ll want to send them out to your customers. Mailchimp has terrific free options for small businesses, making email marketing intuitive and beautiful. You can send up to 12,000 emails messages to 2,000 subscribers for free. Mailchimp even offers analytical help–you can check open rates and other data so you can get a handle on what sort of email campaigns work best.

Slack

Slack is now the gold standard for inter-team communications at firms big and small. It is far less unwieldy than group text messaging and allows you to create different channels with different users. You can easily send around pictures, links, and files. Slack is also a secure way to direct message individuals in the team.

Legal help from Docracy.

When it comes to legal matters, you probably shouldn’t be solely focused on saving money. However, if you are just starting out, Docracy is a free resource full of sample contracts and other legal document templates. While you will still probably want to hire an attorney to review everything, it is a good starting place. Docracy allows you to digitally sign and share documents for free, too.

Quick—when was the last time you calculated your business’s profit margin?

If you answered “Last week,” excellent! And if you don't remember, you’re probably way overdue.

But were your numbers good or bad? Every company is unique, so the yardstick you measure your profit margins against isn’t the same one your neighbor uses. What's considered a “good" range varies across industries—restaurants average a slim 6–8%, whereas the advertising and public relations industry averages a more generous 11–20%.

That means your answer should probably be, “It depends.” Here’s why.

What are profit margins?

Profit margins are key performance indicators that can help you make strategic decisions to keep your business profitable and healthy.

To go deeper, we cover various different profitability ratios here, including how to calculate them and what their purpose is. The 3 most commonly used are:

• Net: essentially shows a company’s bottom line
• Gross: can indicate how well strategies like a price increase are working
• Operating: can show out-of-control expenses

So what’s the difference between a profit number and a profit margin? Profit numbers show a dollar amount—e.g., a $5 profit on an item sold. Profit margins are a percentage that allows your number to be compared against industry averages and competitors or to reveal trends within your own business.

For example, imagine a bakery wants to know if 2 desserts are equally profitable. The calculations for this example are:

• Gross profit = net sales – cost of goods sold (COGS)
• Gross profit margin = (gross profit / net sales) * 100

Both desserts generate a $5 gross profit per unit. However, vanilla cake has a much higher gross profit margin. That kind of insight might influence whether pie stays on the menu or suggest that social media promotionsshould market the cake.

What should your profit margin be?

Once you've calculated your profit margin, how do you know if it's good or bad? In other words, what should your profit margin be? The answer is—it depends.

According to the Corporate Finance Institute, the average net profit for small businesses is 10%, while 20% is considered good. But your mileage may vary depending on a variety of factors.

For example, a company’s size and life stage can heavily influence profit margins. It wouldn’t be reasonable to expect a mom-and-pop retail store to have the same profit margin as a monster retailer like Walmart. Big companies have more leeway for spreading out or reducing costs through automation than small businesses.

Seasonality can significantly alter your margins, too. No one would expect a ski resort's summertime profitability margins to resemble the values calculated during a snowy winter season.

The economy can also shift what’s normal for an industry—consider the hotel industry's profit margins during the COVID recession. During the shutdown, some hotels improved their gross profit margin by eliminating room service or reducing housekeeping. But their net profit margin, which included mortgage or rent on a commercial building, probably wasn’t even close to normal.

And each industry's typical profit margin range depends on its COGS and operational needs. Think about the difference between a restaurant, a dental practice, and an independent technology consultant—their revenue and expenses are vastly different. Restaurants tend to have high COGS, as meal preparation requires perishable ingredients. The dental practice’s expenses include costly X-ray equipment and malpractice insurance. The technology consultant would most likely have the lowest operating expenses of all 3, as labor would be its main expense. Thus, these businesses' “normal” net profit margins aren’t comparable to each other.

You can find industry averages in various online databases, via your favorite trade association, or even by asking the research librarian at your local library—and you can use those ranges, along with knowledge of your own business’s variables, to judge if your margins need improvement.

Remember, however, that profit margins fluctuate and can be impacted by market conditions. The margins in this chart were calculated in January 2022, during a period of higher-than-normal (8%) inflation.

How to improve your small business's profit margin.

Now that you’ve completed the calculations for your business, how can you increase your profit margin?

Every business can increase net profit margin (their bottom line) by either increasing revenue or decreasing expenses—or perhaps both. The trick is to understand the business impact of pulling each lever. Will your margins improve more if you raise your prices or negotiate lower pricing with your suppliers?

For example, a restaurant impacted by rising inventory costs could charge more for each item. But their customers are price-sensitive, so they may choose to reduce expenses instead by cutting portion sizes.

On the other hand, a consulting business could reduce expenses by modifying internal workflow processes. Suppose a senior consultant spends 5 non-billable hours a week inputting timecards and expenses. In that case, those tasks probably need to be automated or assigned to a lower-cost data entry clerk to minimize labor costs.

Why should you care about your profit margin?

Numbers are great, but do they really matter? Short answer: yes. Tracking your profit margin can help you to make plans and decisions based on facts, not gut-feel. Scoring a new client can make you feel flush with cash—but only a review of your profit margins will tell you for sure. Remember our dessert example from earlier? Not all profits have the same value.

Monitoring profit margins also helps you work towards your financial plan. It’s similar to a New Year’s resolution to lose weight: after a week-long cruise vacation, a weigh-in might be a reminder to eat healthy again, but your 6 months of historical weight tracking shows that your long-term plan is working, with only a slight hiccup post-vacation. Profit margins do the same thing for your business—they allow you to make course corrections in the short term while providing context in the overall big picture.

Profit margins may also be a factor in certain types of small business financing, and a potential lender may review a business’s profit margin before making a decision, especially for more conventional loan products, like a term loan. While the borrower’s ability to service the requested debt is paramount, current debt service and profit are also important to the equation.

You're in charge of your profit margin.

Take steps to calculate and monitor your profit margins regularly. With some minor tweaks to revenue or expenses, you might find your profit margins soaring from okey to outstanding.

*Disclaimer: The information provided in this post does not, and is not intended to, constitute business, legal, tax, or accounting advice and is provided for general informational purposes only. Readers should contact their attorney, business advisor, or tax advisor to obtain advice on any particular matter.

For decades now, it’s been a game of catch-up for women in business—and they’ve gained a lot of ground. From 2019 to 2023, the number of new women-owned businesses grew at nearly double the rate of businesses owned by men. But the struggle is far from over. The statistics on women-owned businesses below highlight just how far women have come and the disparities we’ve yet to overcome.

How many women-owned businesses are there in the U.S.?

• Women are now majority owners in at least 35 percent of U.S. employer firms.
• In total, women own 13.8 million businesses employing 10 million workers and generating $3.9 trillion in revenue across the U.S. 
• Women own 28.6% of employer firms with a revenue of $1 million or more.
• Of the 2 million employer firms owned by women in the U.S., 24% are owned by minorities.
• 3.6% of women-owned employer firms are owned by Black or African American women.
• 13% of women-owned employer firms are owned by Asian women.
• .8% of women-owned employer firms are owned by Native American or Alaskan native women.

What industries do women start businesses in?

Women start and run businesses in every industry.

Which states have the highest percentage of women-owned businesses?

Western states have the highest percentage share of women-owned businesses.

Which states have the highest number of women-owned businesses?

High-population states have the highest number of women-owned businesses.

Stats on the growth of women in small business.

The number of women-owned businesses has grown substantially over the past decade.

• The number of women-owned businesses in the U.S. increased 13.86% from 2014 to 2021.
• A 2019 report from the JPMorgan Chase Institute found that businesses owned by women and businesses owned by men had equal survivability rates based on an analysis of 138,000 companies founded within the decade prior. 

Stats on disparities in male- and female-owned small businesses.

Despite the rapid growth, women still face challenges in obtaining funding and growing their businesses.

• Women-owned businesses received just 32.6% of the approvals and 28.4% of the dollars offered in SBA 7(a) and 504 loans in the 2023 fiscal year. 
• Women are more likely to apply for a loan with an online lender. 30% of women business owners reported applying for a loan through an online lender vs. 20% of men-owned businesses.
• Women are less likely to receive the full amount of funds requested. 45% of women-owned businesses were fully approved for the loan requested vs. 55% of men-owned businesses in 2023. 
• 25% of women are denied a business loan vs. 19% of men.
• In 2021, 4.63% of federal contract dollars when to women-owned small businesses.
• 38% of women-owned businesses are operating at a profit vs 47% of men-owned businesses.
• 33% of men-owned businesses have annual revenues of $1 million or more vs. 16% of women-owned businesses.

The American business landscape has made progress for women entrepreneurs. Before federal legislation was passed in 1988, women business owners needed a male co-signer to apply for a loan. While lenders need to understand that women-owned businesses are as safe an investment as male-owned businesses, female entrepreneurs should also take the steps to apply for capital, particularly when that capital can be used to help grow the business. 

Chinese culture is known for many things. Not only are they know for their business sense, but for their philosophy as well. So it’s no wonder that one of their most popular philosophers, Confucius, has a number of quotes related to running a business. Here are 5 of the best quotes by Confucius on running your small business:

Perseverance

“It does not matter how slowly you go so long as you do not stop.”

When applied to running a small business, it means you shouldn’t panic even if growth is slowing down. As long as your small business is not shrinking or losing money, you should not worry. Progress is always good even if it’s not always moving at breakneck speeds. Remember that running a business is a marathon, not a sprint. Even if you're not going to IPO in the first 3 months, if you persevere and keep at it, you will outlast many of your competitors.

Taking action and implementation.

“I hear and I forget. I see and I remember. I do and I understand.”

When running a business, you should remember that all the theories, planning, feasibility studies and constant meetings will never amount to anything if there is no implementation. Business is about hearing, seeing, doing, and understanding. Watch what your competitors are doing, keep your ears close to the ground, and take action.

Preparing for worst-case scenarios.

“Success depends upon previous preparation, and without such preparation there is sure to be failure.”

Confucius places a lot of importance in preparing for the worst-case scenario, regardless of how much success your business is currently enjoying. This is because he believes that when you find success, you have much more to lose and as such must ensure that your business should take any potential crisis into account. Keep in mind that when it comes to running a business, encountering a crisis is an eventuality. It’s not a matter of if, it's a matter of when.

Skill development

“The expectations of life depend upon diligence; the mechanic that would perfect his work must first sharpen his tools.”

In this quote, Confucius underscores the importance of continuing education and keeping one’s skills fresh. In any industry, there will always be new technology or practices, or standards to follow. If your knowledge is stagnant, you could be left behind by competitors who keep abreast of industry trends, and those who continue to learn new principles or skills.

Learning from strategy.

“He who learns but does not think, is lost! He who thinks but does not learn is in great danger.”

This quote teaches that when running a business, learning and strategizing always go hand in hand. There should always be an effort to learn from any strategy you’ve implemented – why it failed or why it succeeded. A business shouldn’t just jump from one strategy or campaign into another without learning from it. On the other hand, a business shouldn’t just focus on theories and strategies without ever considering if it fits with their business model or campaign. Learning something new from a competitor isn’t so useful if it does not apply to your business.

What about you? Do you have any other quotes by Confucius on running a small business?

Have you heard that you need to spend money to make money? It’s an oft-repeated sentiment, but it’s that “spend money” part where a lot of businesses get stuck. 

When you’re just getting your business idea off the ground and are pinching every last penny, accessing the capital you need to gain momentum can be a major and frustrating roadblock. Even more disheartening? Several of the most common reasons for small business failure come back to the lack of cold, hard cash. 

That’s where angel investors come (or should we say fly?) in.

What is an angel investor?

Let’s start with a simple angel investors definition: An angel investor is someone who provides capital to an entrepreneur or small business in its very early stages. We mean very early—sometimes the business is nothing more than an idea or a prototype. In exchange for financial backing, angel investors usually take equity in the company. 

Why are these investors called angels? Well, because they often act as a saving grace for a startup. Since angel investors are offering money at such an early stage, it’s considered a riskier investment. For that reason, angel funding is frequently one of the only options for new businesses struggling to access other, more traditional types of funding. 

Angel investors vs. venture capitalists: Is there a difference?

There's quite a bit of overlap between angel investors and venture capitalists. They're both investing money into a business in the hopes of getting a return.

However, there are some

There’s quite a bit of overlap between angel investors and venture capitalists. They’re both investing money into a business in the hopes of getting a return.

However, there are some notable differences between these 2 types of investors, including: 

• Investment stage: Angel investors invest early to help a business get started or go to market, whereas venture capitalists (VCs) typically like to finance the growth and expansion of a business that’s already a little more established. 
• Investment source: Venture capitalists invest money that’s pooled from other companies and funds, while angel investors typically invest their personal money. 
• Investment amount: For that reason, angel investments are typically smaller than the investments of venture capitalists. Statistics show that in 2020, the median deal size from an angel investor was $1.2 million. In comparison, an early VC invested $4.5 million, and a later VC invested $9.9 million. 

See? There's a distinction between these investors. However, both angel investors and VCs generally provide strategic advice, support, and expertise to the startups they invest in, along with financing. After all, any type of investor ultimately wants the business to be successful.

How to find angel investors for your small business.

Now that you know the basics, let’s get to the good stuff—how do you find angel investors?

If you’re like most people, you don’t have a huge web of connections who are willing to throw thousands or even hundreds of thousands of dollars at your startup—and that can make finding angel investors a challenge.

The good news is that there are some steps you can take to find funding for your brand new business (or even your business idea). 

1. Know the type of investment you're looking for.

As with any investment, it’s important you understand what you need. That will provide a lot of direction before you start pounding the pavement looking for money.

Do you need $10,000 to get your business going? Or do you need $1 million? Are you hoping to get what you need from a single angel investor? Or are you willing to open things up to many different investors? 

Answers to questions like those will not only help guide you as you start your search for investors but also make you look polished and confident—even if your business is brand new. 

2. Start with the people closest to you.

While many businesses discern between angel investors and a “friends and family round,” there’s quite a bit in common. In fact, many angel investors fund businesses of their friends and family.

So when you start your search for business investments, it can be best to begin in your backyard. Your loved ones likely won’t be investors who are accredited by the Securities and Exchange Commission (SEC), but they can still help get your business going. 

In fact, friends and family are a huge source of investment for startups, investing a combined $60 billion per year. In comparison, angel investors invest $20 billion in a year. 

When approaching friends and family for money for your small business, make sure you:

• Have a polished pitch: Knowing them personally isn’t an excuse to be sloppy. Clearly state the details of your business (including your mission, business plan, target market, and more) and the type of investment you’re looking for.
• Keep communication professional: Treat your friends and family like you would any business investor. Set a meeting and prepare for a formal presentation. You want your request for funding to be seriously considered rather than brushed aside as an off-hand remark.
• Give an out: Mixing business and personal relationships is always complicated—especially when you’re asking for money. Don’t pressure your friends and family, and make sure you offer an opportunity to turn you down without any hard feelings. 

Of course, it’s entirely possible the people in your immediate circle don’t have the means to invest in your business, even if they believe in you. Regardless of if they open their wallets, remember to appreciate their other methods of support and encouragement—those are important too. 

3. Grow your network.

Perhaps you don’t know somebody who’s prepared to invest in your business. But your friend might. Or your neighbor. Or your uncle. You get the idea. 

We’ll spare you the clichés about the importance of your network, but this web of contacts is particularly important when you’re looking for investments. 

Your best place to start is to connect with other small business owners in your area. The small business community is…well, small. They might have some insight into angel investors who are looking for new opportunities. 

Additionally, it can be helpful to find a mentor through SCORE, a nonprofit organization and partner of the US Small Business Administration (SBA). These mentors are established and experienced business professionals who have access to hard-won information and resources—which might include an “in” with an angel investor. 

4. Turn to designated platforms.

Thanks to the internet, we have piles of information right at our fingertips. There are a number of platforms designed to help entrepreneurs find angel investors without even leaving their couch. 

Some of the best options to check out include: 

• Angel Capital Association (ACA): Using the ACA member directory, you can choose your location and see a list of angel investors near your area. 
• AngelList: AngelList has a long list of angel investors in North America. You can also see details like their location and number of investments.
• Invstor: Invstor is another platform designed to help you find angel investors and venture capitalists. You’ll need to post a funding request by submitting some basic information about yourself and your business (like your industry and how much funding you need), and then choose if you’d like to access the investor network yourself or have Invstor send out a request to the network so interested investors can contact you. 

LinkedIn can also be helpful. Use the search functionality to search “angel investor” and then click the top menu option for “people.” From there, you can apply additional filters to narrow down by location, company, school, or even your degree of connection.

Pros and cons of angel investors.

For many small business owners and start-up entrepreneurs, the idea of an angel investor seems nearly divine – it’s right there in the name. Angel investors offer financial backing for infant businesses, many of which have a hard time finding funding from traditional sources.

The money an angel investor provides can be the difference between making your idea a reality or having it to keep it stored in a desk drawer. However, an angel investor is not going to dump a bunch of money in your bank account without any expectations. There are clear trade-offs that any business owner just starting out should be aware of.

Pros

• The money is not a loan: Probably the most exciting part about an angel investor is that the money they offer is not a loan, unlike funding you would find from a traditional bank or even from family. Instead of providing a loan of a specific amount of money, an angel investor buys an ownership stake in your business. Hopefully, the venture succeeds and both you and the investors make money. If your business never gets off the ground or fails to be profitable, the investor won't expect money back. A bank, of course, expects a loan to be repaid no matter whether your business sinks or swims.
• Angel investors believe in risk: Famously, angel investors believe in extremely risky ventures on the cutting edge of technology and industry. They are far more willing to back risk than a traditional bank because they don't expect their money back if you fall flat. Even if you get a bank loan, the bank might restrict the amount you can borrow at once to reduce the chance you won't get their loan back. Most angel investors have years of experience working with small business owners, so they have a sense for good ideas and quality people, even if a business concept seems outlandish now.
• Angel investors have a lot of money: Angel investors, especially the deep-pocketed Silicon Valley firms, have a lot of money. Depending on the size of your business, an angel investor can infuse your company with cash usually ranging from $25,000 to $500,000. Better yet, they can provide this money quickly and usually with no expectations that it will be returned. This investment can be critical for a business to hire the employees and buy the equipment necessary to get a venture off the ground. Because it is not a loan, the business owner does not have the added stress of worrying about how to repay the investment.

Cons

• The money comes with strings attached: An angel investor will not just hand you a check and leave you alone to do whatever you wish with the money. Angel investors will typically take a relatively active role to ensure the business grows toward profitability. This input can lead to conflict with a business owner. Also, by giving away equity, you are reducing the amount of money you would earn if the business is successful. It may not seem important when a business isn't earning money, but that will quickly change once you're profitable. Carefully review and understand any angel investor agreement; be suer to look at it with the lens that your business will earn a lot of money someday soon.
• They will push you: Ultimately, an angel investor wants his or her stake in your business to become profitable as soon as possible. Therefore, an angel investor's funds come with the expectations that you will expand and grow on a timetable that may not match your own. Perhaps profitability is not your primary motivation – maybe you want to sell tasty cupcakes in an underserved area or create a new social media platform. You might find yourself in conflict with an angel investor fast because your goals don't align. Before accepting any agreement, make sure you understand and harmonize with an angel investor's long term plan for your business.
• They expect a return on their investment: Of course, the stake an angel investor wants in your business is considerable. It is normal for an angel investor to want a 25% return on their investment. This expectation means that once your company turns a profit, an entire quarter of these profits will go to the angel investor. This amount can grow exponentially if your business takes off. Because they stand to make so much money, angel investors may seek to control more of your business than you like. Additionally, angel investors are usually not interested in first-time small business owners, no matter what the pitch is. they want to know that you know how to run a business before handing over thousands of dollars.

Angel investors aren't your only option.

Many businesses look to angel investors to get the financial backing they need at an early stage, and these types of investments certainly have their merits.

However, it’s not your only option to get your business rolling. You could crowdfund your business through a platform like Kickstarter or even apply for a business loan. 

While the little voice in your head might be telling you that you’ll never qualify for a loan, that’s not necessarily the truth. With Lendio, you can fill out a simple application (we promise, it takes 15 minutes), compare your lending options, and get your capital in less than 24 hours. 

That quick application could be all that stands between you and the funding you need—and you won’t even have to part with equity or beg your loved ones for money to get it.