The economic clout of women-owned firms in the U.S. continues to increase, particularly in Riverside, Sacramento and the state of Arizona.
According to the 2015 State of Women-Owned Businesses Report commissioned by American Express and released May 18, Arizona ranked 4th in terms of growth in “combined economic clout” – an average of rankings in growth in the number, revenues and employment of women-owned firms.
Of the top 25 metropolitan areas, Riverside and Sacramento ranked 5th and 7th in their growth in economic strength of women-owned businesses. These areas are serviced by CDC Small Business Finance, which helps women-owned small business expand and create new jobs. CDC has provided women entrepreneurs with over $1.5 billion in financing, leading to the creation of more than 9,000 jobs.
According to the American Express report the greatest number of women-owned firms is found in health care and social assistance (including doctors and dentists, residential care facilities and child care providers) – 53% of firms in this sector are women-owned, compared to 30% of all businesses combined.
The report indicated that in 1997, there were 929,445 firms owned by minority women – 17% of all women-owned firms. That number has jumped to an estimated 3,111,300 in 2015, or 33% of women-owned firms. These 3.1 million multicultural, women-owned firms employ 1.6 million workers and generate an estimated $268 billion in revenues.
Part of our series on Small Business Tips For Success
Small business owners who need money to help grow their companies should make sure they put their best financial foot forward before reaching out to a bank or other lending organization.
Here are five good ways small businesses and new entrepreneurs can improve their chances of getting the financing they need:
1. Maximize profitability in most recent tax return – delay realization of expenses into next year if it helps create a more profitable presentation. Tax returns carry more weight than company-generated financials in the eyes of lenderss. If you had a good year, file your tax return early to make that return available to the place where you’re applying for the loan.
2. Postpone personal debt – don’t buy a new home or boat just yet; delay planned major purchases until after applying for and closing your loan.
3. Pay down debt – take the obvious steps of reducing any existing credit card or other debt you have as much as possible.
4. Make sure your internal financials are as accurate as possible – sometimes business owners don’t pay enough attention when recording expenses and income. Make sure your numbers are accurate! Good internal accounting software helps, but is not essential. A second set of eyes from a financially savvy person goes a long way.
5. Keep your personal credit score as high as possible – Make sure you don’t have “late pays” on your credit. You can use Annual Credit Report.com or www.creditkarma.com to get a free copy of your credit report. Review the marks on your report to make sure they are all correct and work with your bank to correct any inaccuracies.
This post is part of a series called Small Business Tips For Success by CDC Small Business Finance, the nation’s leading provider of small business financing via SBA programs. Find us online at www.cdcloans.com and on Twitter at @CDCLoans.
Small business entrepreneur Gary Nguyen, founder of 24/7 Care at Home in Orange County and CDC Small Business Finance borrower, has been named the 2015 Small Business Person of the Year for SBA’s Santa Ana District.
The son of Vietnamese immigrants, Nguyen launched his comprehensive in-home healthcare service in 2007 and has grown the company into a $10 million-revenue enterprise. He employs 150 people and serves families in Orange, Los Angeles, Riverside and San Bernardino counties. Nguyen projects 2015 revenues of $20 million.
SBA financing became a vital resource for Nguyen beginning in 2013. With revenue and employees doubling every year, he wanted to consolidate three separate leased office suites. He turned to CDC Small Business Finance and the SBA-504 loan program to purchase a $1.7 million, 12,000-sq.ft building to accommodate his rapidly expanding company. Then, in growth mode again in 2014, he tapped SBA financing in the form of a $250,000 Community Advantage loan to cover operating costs and the hiring of new employees. Nguyen projects his business will create 45 new jobs over the next two years.
24/7 Care at Home’s reputation for excellent service has been amplified by prominent doctors and validated by winning the Pinnacle Quality Insight Customer Experience Award for three years running (2012 – 2014). Nguyen’s company was also recognized as one of the top 100 home health agencies in the United States in 2014 and 2013 (National Research Corporation’s Home Care Elite).