Many women dream of starting a business. Due to the current economic crisis where thousands of people have lost their job and businesses have closed their doors because of the COVID-19 pandemic, more women than ever are considering starting a business.

As an independent business woman, you would have the opportunity to showcase your initiative, creativity, and abilities. If successful, it can also lead to financial independence and a lifestyle you’ve always desired. It is easy to start a business and the potential for success exists in every market and location, although the reality is, failure is also possible. That is why understanding business concepts is important.

If you are interested in being self-employed, start with looking for the right opportunity. With the reach of mass media, easy accessibility of the Internet, and, in normal times, readily available travel opportunities, even small women entrepreneurs can have customers anywhere in the world. Web-based businesses have opened totally new opportunities and new, innovative types of businesses are growing.

Entrepreneur vs. Small Business Owner

If you have even wondered about the difference between an entrepreneur and a small business owner, these definitions will help.

Entrepreneurs are people that start a business. Usually, they are innovative types who bring creative ideas to life by discovering market needs and launching new businesses to meet those needs. Entrepreneurs can own or manage any type of business including a family-owned business, franchise, or established business as the new owner. Most entrepreneurs the characteristics of being risk takers and self-starter with a strong desire for independence.

A small business is the actual operation conducted by an entrepreneur. Small businesses  can vary in size, operation, product, services, or other commercial venture. Some grow to be large companies or corporations. For instance, depending on the industry, a small business could be a multimillion-dollar firm and still be considered “small” because of its size relative to larger firms in the same industry. A small business could become a franchise which greatly expands the income base and provides opportunities for others to engage in the operation.

The Reality of Being in Business

Being in business comes with a lot of responsibility. There is record-keeping of financial transactions as well as operations. Managerial responsibilities include overseeing daily operations, hiring staff as needed, marketing the business and more. It takes real effort and ability to create a successful independent venture, but you do not need big degrees and years of education. What is necessary is an understanding of how businesses function and the personality to keep going, stay focused, and move ahead despite the inevitable obstacles and challenges you will face.

Businesses provide a service or product for a target market. When you find a need in a target market and have the skill set to fill that need, you can develop your business in a creative way to serve the target market. Your business could be a store, retail operation, online Internet-based, service provider, product sales, manufacturing, direct marketing, multilevel marketing, or a franchise. Many can be started alone, or with some basic assistance or a virtual assistant.

Business Models

A business model is the way certain groups of businesses function. Different business models require different type of structures, decision making styles, and suppliers, among other things. Both physical and internet-based business can fall under three common business models:

Business to business (B2B): These businesses provide goods or services to other businesses. Typical B2B businesses are manufacturing, wholesalers, or distribution businesses.

Business to Consumer (B2C): These businesses provide services or products directly to the consumer. This model requires an understanding of a target market and knowing how to satisfy the needs of that market. Typical B2C businesses are retail operations, manufacturers, and online versions of large stores. Millions of B2C businesses now work at both a physical location and through the Internet.

Consumer to Consumer (C2C): These businesses move products between private individuals. C2C businesses became highly popular with the emergence of the internet which gave any individual the opportunity to create a business.

Where Do You Start?

Have you thought about the type of business you want to start? What would you be happy doing everyday even if it meant working long hours, particularly during the start-up phase?  What could you do with your current skills?

In fact, you might know the exact product or services you want to provide. But it is still important to be realistic about what it takes to succeed in good times or bad. Starting during the pandemic can present challenges, but it might be the perfect time for what you want to do. Taking time to plan your business before you start (or working on your plan even after you start) will pay huge dividends over time.

Plan Your Steps

If you know exactly what you want to do in business or not, it is important to think the whole process through prior to starting. You want to know what type of customer you want, the hours you want to keep, and many other aspects. Planning lets you get a realistic view to focus the idea before you get up and going.

So, what type of business woman do you want to be? What Industry do you want to join?