If you are a woman-owned business, you may be wondering how to become a woman-owned certified business. Below, we will cover what it means to be a woman-owned certified business, why certification could benefit your company, the different types of certifications, common misconceptions, and key considerations before pursuing certification.
What is a Woman-Owned Certified Business?
A woman-owned certified business is one that has received official certification, typically from a state or federal agency, verifying that a woman is the principal owner and operator. Some private companies also assist small businesses in obtaining their state or federal certification.
While you don’t need certification to state that you are a woman-owned business, there are situations where having an official certification can be beneficial. Certification helps businesses qualify for contracts, funding, and networking opportunities designed to promote diversity in business.
To qualify for certification, most programs require that:
A woman (or women) owns at least 51% of the business.
A woman is actively involved in the daily operations and decision-making processes.
The woman owner holds the highest title within the company, such as CEO or President.
History of Women Business Owners
The history of women business owners being intentionally excluded from doing business in the United States dates back to early colonial times. Coverture didn't consider women to be their own legal identity and women largely weren’t able to legally own property in many cases. The practice of coverture was gradually abolished in the late 19th and early 20th centuries. Coverture was adopted from English law and also has Spanish and French roots.
Before colonization, many Native American women had equal rights and economic independence, exercising business and trade up to 1,000 years ago.
It wasn’t until 1988 that women business owners in the U.S. gained the legal right to obtain a business loan without requiring a male co-signer. Today, women own about 35% of businesses with employees and receive 32% of business funding.
The Small Business Administration (SBA) has set a goal to allocate 5% of federal contracting dollars to Women-Owned Certified Businesses. However, this goal has only been met twice in the last 20 years. That means the federal government continues to spend 95% or more of its contracting dollars with male-owned businesses, despite women owning over a third of employer businesses in the U.S.
Businesses with gender diversity in leadership roles often have higher rates of profitability, more balanced risk management, better talent recruitment, and an enhanced reputation according to a study by McKinsey.
Recognizing this is resulting in companies now actively seeking to increase supplier diversity.
Benefits of Being a Woman-Owned Certified Business
Becoming a woman-owned certified business can offer several advantages, including:
Access to Government Contracts
Federal, state, and local governments have supplier diversity initiatives that set aside contracts specifically for women-owned businesses. These contracts can provide steady revenue and credibility. Plus, these organizations often buy large quantities – just think of the amount of supplies needed to run a public school system. It’s easy to discount a small business as not necessarily selling something that a large organization would need, but if you stop to think about what it takes to run a town parks and rec system, public school district, or hospital, it becomes evident that these organizations need the same things we need to run our homes.
Corporate Supplier Diversity Programs
In addition to government contracts, many large corporations have programs that prioritize working with diverse suppliers. These corporations may have a specifically named program and a process to support potential suppliers. In some cases, certification can make it easier to connect with these opportunities.
Networking and Business Growth
Certification provides access to exclusive networking events, mentorship programs, and funding opportunities. Organizations such as the Women's Business Enterprise National Council (WBENC) offer support and connections to other female entrepreneurs.
Competitive Advantage
Displaying your certification can help build credibility with potential clients and partners who value working with certified women-owned businesses.
Types of Woman-Owned Certifications
There are multiple levels of certification, depending on the needs of your business. The Women-Owned Small Business (WOSB) Federal Contract Program, managed by the SBA, helps women-owned businesses compete for federal contracts. Many states offer Women Business Enterprise (WBE) certifications for businesses seeking state-level contracts. Various nonprofit organizations and regional programs also provide their own certification options. Not sure where to start? Keep reading for what to consider before you become a woman-owned certified business.
Common Misconceptions About Woman-Owned Certifications
There are several misunderstandings about what it takes to qualify for certification. Simply being a part-owner of a business is not enough. You must prove you are the principal owner and operator of the business. For example, in an architectural firm, the woman owner must also be a licensed architect to qualify for certification.
In the past, businesses were sometimes certified even if the woman owner was not actively running the business. Today, the certification process has stricter requirements to ensure that women are truly leading the business.
Questions to Ask Before Pursuing Certification
Certification can be a valuable asset, but it may not be necessary for every woman-owned business. Consider whether buyers in your industry prioritize supplier diversity, if certification will help your business access new markets or contracts, and if you meet the eligibility requirements for ownership and control.
For example, an engineering firm looking to secure government contracts may benefit significantly from certification, while a local boutique may not see the same advantages.
Taking the Next Steps
Becoming a woman-owned certified business can be a strategic move for a business to make. However, it’s important to evaluate whether it aligns with your business goals. If certification makes sense for your business, taking the time to navigate the process could open the door to growth and success.
We help business owners navigate the ups and downs of building the business they want. Our rules are: Clear, simple, no-fluff, and actionable! Stop doubting yourself. Meet your small business map — The Guided Small Business Planner™. This is a workbook guide with step-by-step instructions for building a strong business foundation. It's your go-to instruction manual with clear instructions for creating a sustainable business. It's not a calendar. It's a guided workbook.
Starting a new business can be both exciting and overwhelming! Two questions that I often hear are, “How can you start a business without money?” and “How can I get funding for a business idea?” This post aims to give a realistic approach for the everyday entrepreneur starting a local business. The world of internet startup advice is rife with myths and half-truths. Many people wonder, 'How can you start a business without money?' and I find the idea both challenging and inspiring.
The idea that you can start a business without money is a half-truth. As the old adage goes, “It takes money to make money,” and it’s nearly impossible to open a business without any money at all. However, there are cost-saving strategies that can save hundreds to thousands of dollars for business owners who are willing to get creative and resourceful.
Determine Where to Invest Your Resources
When considering how can you start a business without money, let your industry and customers guide the process. For example, a tailoring business requires sewing machines capable of meeting customer needs, while an ice cream shop will need a freezer. That doesn’t mean the most expensive freezer or sewing machine. It’s easy to get caught up in needing the “best” and go over budget. Drawing from my experience with thousands of business owners, here are my favorite tips for starting a business on a budget. I’ll also highlight key areas where it’s wise to invest early on.
Wait to Register Your Business
Many new business owners start by registering their LLC and purchasing a URL for their future website. While these steps are important, I recommend waiting until you’ve done some initial research. Some business ideas sound great until you jump into the details–especially if it’s an industry that is new for you. For example, I love shopping for kids' toys and love the idea of curating a kids’ toy store. However, because of my experience as a coach and startup expert, I know that I wouldn’t thrive as a long-term storefront owner.
Entrepreneurs tend to think creatively and we get a lot of good ideas. Answering the following questions can help you avoid jumping into a business that isn’t a good long-term fit, saving you time and money:
Is your business name available and not already in use?
Is your URL (website address) easy for customers to understand and remember?
Once you’ve confirmed those two items, ensure you can confidently answer these questions about your business idea:
What do you sell?
Who are your customers?
Why does your product or service make a difference in the lives of your customers?
How do you sell your product or service, and how do your customers find you?
Why do you want to sell?
How much does it cost to sell your product or service?
When do you sell your product or service? Is it always available, seasonal, or dependent on other factors?
Answering these questions may take a few weeks or even a couple of months, and while I know you are eager to move forward with your business, investing the time now will pave the way for a smoother launch.
An additional way to invest early on is to consult a CPA and a lawyer. They can explain legal and tax implications and ensure you avoid investing in a name or product that’s already owned by someone else.
Buy Used and Wait to Purchase
Fifty percent of businesses close within five years, which means a lot of equipment or machinery becomes available at a fraction of the cost. From furniture to espresso machines to decor, buying used can significantly reduce your startup costs. It may require more effort, such as searching used restaurant sites or reaching out to industry peers, but it’ll save your bottom line.
Additionally, avoid buying items before they are absolutely necessary. For example, I’ve wasted money on software subscriptions I didn’t use immediately. These small expenses add up over time. It’s pretty amazing how $15/month can add up when you use multiple services.
The same caution applies to equipment. Wait until customer demand justifies the purchase. Buying prematurely can lead to unnecessary financial strain. I have worked with business owners who spent tens of thousands of dollars on new vehicles or equipment that didn’t reflect the financial health of the business. They wanted a fancy vehicle to make the business look successful but ultimately, the business closed and the equipment was sold at a loss. If the business owner had waited to invest in the more expensive equipment, they would have kept their costs lower and had an easier time paying the monthly bills when sales didn’t meet their expectations.
When to Invest
How do you know when it’s the right time to invest in equipment? If you’re turning customers away because you can’t meet demand, it may be time to increase your capacity. However, remember that increasing capacity doesn’t automatically increase customers. Start small and scale gradually.
Plus, an added benefit to buying used? It’s better for the environment and reduces your carbon footprint as a business.
Free Marketing Works
When exploring how can you start a business without money, free marketing can be one of the most effective ways to grow your business. Leveraging these strategies answers the question, 'How can you start a business without money?'
What do I mean by ‘free marketing?’ Activities that have little or no cost but directly impact your sales. Here are some of my favorite free marketing activities:
Networking Events: These events give you the opportunity to build new relationships and strengthen existing ones.
Referrals: Ask friends and family for referrals but be specific about what type of referral is most helpful for you.
Google My Business Reviews: These are a must if you have a physical location or serve a local area.
Word of Mouth: You are your best salesperson. Talk about your business everywhere you go!
Partnerships: Collaborate with businesses that serve a similar customer base. This will often help both businesses accomplish more!
Consistency is key! Your customers need multiple touchpoints before they make a purchase decision.
Building a Digital Presence
A cohesive digital presence can be a wise early investment. A simple website that clearly states who you are and what you do helps build trust. There are many free or low-cost templates options available at a reduced price and you can work with a local graphic designer to provide the level of polish that your customers expect.
Good Enough is Perfect
Knowing how can you start a business without money also means recognizing when "good enough" is sufficient.
In the era of aesthetic marketing, it’s easy to think everything must look perfect. But your product or service doesn’t have to be flawless to sell well. If it resonates with your ideal customer and provides high value, then focus on sales! As a consumer, I’ve been disappointed by many products or services that were pitched as “the best” and fell short. Pretty pictures don't make a high-quality product and a stunning logo won’t be as valuable to your customer as a good experience.
Tiny Tweaks Add Up
You likely have a vision of how you want your business to look in the next year or two. However, your to-do list might feel overwhelming in the face of that vision. I’ve coached many business owners who have felt trapped because they just weren’t sure what to do first. My advice: Start selling in a way that is affordable and manageable now. For instance, if you’re opening a tailor shop but can’t afford high-end machines, offer basic repairs first. Making ice-cream? Start with micro-batches. It’s okay if it’s not exactly what you want, you can make small adjustments and improve as you go. What matters most is listening to your customers and consistently providing value.
Remember, things rarely turn out exactly how we envision they would and this also applies to starting and running a business. The value in starting to sell before you have the “perfect product” is that it’ll cost you a lot less time and money to make changes than it will once you have higher costs.
Learn from Others
One of my favorite sources of startup stories is the podcast, How I Built This. It shares founder stories and highlights the challenges and triumphs of building a business. Learning from others’ experiences can help you navigate your own journey.
Investing in Your Business
Figuring out how you can start a business without money is challenging but you can save a lot of time and money by using cost-saving strategies, prioritizing value, and making thoughtful investments. If you’re curious about financing options, check out this post on grants and small business loans.
Getting Started
Ready to take the next step? The Guided Small Business Planner is your go-to resource for building a solid business foundation, minus the guesswork. It walks you through every stage, from identifying your target customers and crafting a marketing plan to setting prices and defining sales goals.
We help business owners navigate the ups and downs of building the business they want. Our rules are: Clear, simple, no-fluff, and actionable! Stop doubting yourself. Meet your small business map — The Guided Small Business Planner™. This is a workbook guide with step-by-step instructions for building a strong business foundation. It's your go-to instruction manual with clear instructions for creating a sustainable business. It's not a calendar. It's a guided workbook.
Starting a business is an exciting journey filled with questions and decisions. After working with thousands of business owners as a counselor, coach, and educator, and launching a few businesses myself, I’ve seen what works and what doesn’t. This year, as I celebrate the one-year anniversary of Flourish In Growth and our first product, The Guided Small Business Planner, I’m sharing the insights that have helped others take their first steps.
If you’re wondering how to start a business from scratch, you’re in the right place. This guide goes beyond a generic business startup checklist. While those can be helpful, they often miss critical elements that lay the foundation for a thriving business. My approach simplifies the process and explains the why behind each step, helping you build a business that lasts.
Start with a Strong Foundation
You’re likely wondering what steps to take and in what order to complete them to start a business from scratch. Like any new project, starting a business takes time and a willingness to learn. Many new entrepreneurs expect to jump from registering their business to earning thousands of dollars quickly, but that’s like buying running shoes and expecting to run a marathon a month later. It’s a recipe for burnout and failure.
Instead, break the process into smaller, more manageable steps. These steps will help simplify the process and ensure you understand the reasoning behind each action. Let’s dive into the roadmap for how to start a business from scratch.
Step 1: Map Out Your Business Model
The first thing that I tell people to do when they’re figuring out how to start a business from scratch is to map out their business model. Think of it as your business blueprint, similar to the way that a blueprint for a house shows the doors, windows, overall size, and room function. Your business model is the exact same, in that it outlines the primary functions of your business. It doesn’t need to be overly complex and your business model is not the place for all of the nitty-gritty details.
Your business model should answer these key questions:
What do you do or sell?
Who are your customers?
Who are your vendors or suppliers?
When, where, and how do you sell?
Why is this business meaningful to you?
Mapping out these details will provide you with clarity and direction, allowing you to make informed decisions as you move forward. Need help? My free checklist includes a business model template to guide you!
Step 2: Identify and Understand Your Customers
Once you’ve mapped out your business model, you’ll have a clearer understanding of how you will generate revenue. This will help you with step two: identifying and understanding your customers.
We call this, ‘customer discovery’ in the entrepreneurial space. Getting to know your customers is crucial as you learn how to start a business from scratch. Identifying their problems, motivations, and challenges—particularly in connection to how they make purchasing decisions—will guide your marketing and sales strategies, saving time and money by eliminating guesswork about what will resonate with them.
Understand Their Problem and Motivation
Every business solves a problem or fulfills a need. Your ability to clearly define that problem will help you connect with your customers. For example, if you sell food, you are selling a relief to hunger or a craving. If you sell a service, you may be selling convenience or perhaps expertise.
Examples of problems or motivations:
Almost 40% of American parents spend over five hours a week chauffeuring their children. This takes time away from the ability to exercise and care for themselves leading to lower levels of fitness and energy.
Homeowners spend an average of $500 and 70 hours annually on lawn maintenance, often to sustain landscapes that do not support healthy ecosystems, native wildlife, or pollinators. Fertilizers and monoculture grass contribute to water and air pollution while diminishing habitats for native species. More suburban homeowners are looking for options that cost less and are healthier for the environment.
It is important to note that you want to focus on identifying the problem before pitching a solution. This keeps the conversation centered on the customer’s needs.
Talk to Real People
Once you have defined the problem, you will want to talk to people who have experienced it. Aim for 10-15 conversations with potential customers, not family or friends, as they may not provide the same type of feedback that you would get from someone who is motivated to purchase what you are selling. During your conversation, stay focused on the problem that your customers face and understand the impacts on them, rather than trying to sell them the product or service that you are going to sell. Not sure what to ask or does this process feel daunting? I provide specific examples and a questions library in the Customers chapter of The Guided Small Business Planner. I frame customer discovery like journalism. If you’ve ever read a Pulitzer Prize-winning article, you know the lengths that a great journalist uses to uncover a story and tell it in an engaging way.
Create a Customer Persona
After your interviews and gathering insights, develop a customer persona. This is a detailed description of your ideal customer that you will use as a reference when creating marketing material. A strong customer persona is one that reads the same way you would describe someone very close to you, in that it should be easy to conjure an image of them doing something they love. A strong persona reads like a profile of someone you know well, making it easier to create relatable content and offerings.
Note: In my experience, many people skip mapping out their business and learning who their customers are. Instead, they jump right into choosing a name and registering their business. If you’ve already done that, it’s okay! You can still map out your business model and focus on understanding your customers before you do anything else.
Step 3: Define Success on Your Terms
The next step in figuring out how to start a business from scratch is to spend a little time on you! I know that you are likely thinking, this is NOT what I’m here to learn. The underlying reason for spending a little time on you before you do the technical steps that feel more like starting a business is because you are the owner and leader of your business.
Every decision you make can and will impact your business. When you spend time upfront deciding what you want and defining what success looks like to you, you’ll be able to better respond to stress or uncertainty when you are faced with challenges.
So, take some time to think about what you want out of your business. How do you define success? Is it the ability to take multiple trips per year? Is it to replace your full-time income? Is it to have a flexible schedule? People define success differently. The more specific you can be about what success looks like for you, the better you will be able to make decisions that align with your business goals.
Note: As a mom of young children, business owner, partner, and active community member, my definition of success may be different from your version. Everyone’s definition is likely going to be different!
The Power of Laying the Right Foundation
Half of all new businesses fail within their first five years. I believe one key reason is that many business owners skip crucial steps: mapping out their business model, deeply understanding their customers, and clearly defining what success means for them. These steps may seem simple, but they’re not always easy—and they make all the difference in creating a strong business foundation.
After working with countless business owners, I’ve seen a clear pattern: those who invest the effort upfront set themselves apart. By putting in the work early, they gain better information, which becomes one of the most powerful tools for building a sustainable, successful business.
Step 4: Understand Your Industry
Once you’ve gained insight into your customer’s motivations, it’s time to dive into your industry. Stay ahead by exploring trends and innovations shaping the landscape. The rapid growth of AI and technology is a prime example. These forces continue to disrupt and redefine industries, making it essential to understand how they impact your business.
Beyond technology, keep an eye on other influential factors, such as political developments, policies that affect industry investments, cultural trends, seasons, holidays, and major events. A broad understanding of these elements equips you to make informed decisions.
Building Connections and Conducting Research
A great way to deepen your industry knowledge is by joining trade or industry associations. These organizations can provide valuable insights and keep you in the loop on changes and opportunities. Additionally, building relationships with major players or decision-makers in your field can expand your network and open doors.
For a more structured approach, use the Competitors Chapter of The Guided Small Business Planner. This resource will guide you through researching competitors, identifying key trends, and even calculating your market share. With these tools, you’ll gain a clearer understanding of your potential revenue and how your business fits into the larger industry landscape.
Step 5: Choose a Business Name
Now comes the fun part…naming your business! Before you choose a business name, you’ll want to vet it. You will want to make sure that it’s available as a URL, on social media platforms, and that it makes sense to your customers. You also want to make sure that it does not have any hidden meanings that may confuse your customers. Lastly, you will want to check to ensure that it’s available through your Secretary of State. Trademarking your name is an optional step for added protection. You can learn more about that here.
Step 6: Register Your Business
Registering your business is a critical step in establishing its legitimacy and protecting it legally. You have two options: seek the guidance of a small business lawyer or take the DIY route. A lawyer can help ensure you have adequate legal protections, while the DIY option requires thorough research and preparation.
If you choose the DIY approach, consider attending a free business seminar led by a lawyer. These sessions often highlight the most common legal challenges business owners face and can help you avoid costly mistakes. Some frequent legal missteps startups make include improper business registration, overlooking necessary permits, and failing to protect intellectual property.
Protect Yourself from Predatory Practices
When you register your business, be aware of predatory practices that target new owners. Scams often come in the form of official-looking mailings, soliciting payments for services you can obtain for free or at a low cost. For example, labor law posters, frequently advertised as costly necessities, are often available for free or at minimal expense through your state agency.
Additionally, many new business owners opt to form a sole proprietorship or LLC. Both are treated similarly for tax purposes: you’ll pay income tax on your business's net income. Understanding your options and staying vigilant against scams will help you navigate this process smoothly and set your business up for success.
Step 7: Obtain Licenses and Permits
The licenses or permits you’ll need to start your business depend heavily on your industry. For example, opening a storefront or restaurant typically requires permits for occupancy, operations, food preparation, alcohol sales, and more. Similarly, if your occupation mandates professional licensing, like plumbing in North Carolina, you’ll need to comply with state board requirements for education, licensing, and legal codes.
Take the time to research and follow the regulations specific to your industry. Overlooking even a single requirement can lead to costly delays or legal issues down the line.
Where to Find Guidance on Licensing and Permits
Each state has organizations that can guide you on the permits and licenses needed to operate in your county and municipality. Your local county or town offices should also be able to answer permitting questions. Additionally, review any rules or restrictions within your neighborhood that could affect your business.
If you’re unsure where to begin, contact your town’s economic development office, Small Business Center, SBDC, or Chamber of Commerce. You can also visit SBA.gov for comprehensive licensing resources. For businesses in highly regulated industries, it’s critical not to rush this process. I’ve worked with several business owners who thought they understood the steps, only to face significant delays when they couldn’t secure the necessary permits or licenses. Taking the time to do it right ensures a smoother path to opening your business.
Want an easy way to track your progress? Here’s my full printable checklist for starting your business.
Step 8: Open a Business Bank Account
Once your business is registered, the next step is to get your free EIN (Employer Identification Number) from IRS.gov. This essential step should be completed before opening your business banking account.
As soon as you start spending money to establish your business, you’ll want to open a dedicated business bank account. Many banks offer free business accounts, but not all accounts are created equal. Here are a few key factors to consider when choosing the right one for your needs:
Is the bank’s mobile app user-friendly and efficient for managing your account on the go?
Can you easily direct deposit or transfer funds without hassle?
Does the account have restrictions that could complicate payments? For instance, some basic accounts limit debit transactions to $1,000 per day.
If you anticipate needing a business loan, is there a local branch with a dedicated business account representative you feel comfortable working with?
Taking the time to evaluate these factors will ensure your business banking account supports your financial goals and operational needs.
Step 9: Build the Essentials
With your business registered and plans in place, it’s time to focus on the foundational elements that bring your business to life. Start by creating a logo that visually represents your brand and setting up a website to showcase your offerings and connect with customers. A professional email account is essential for building credibility and communicating effectively with clients. At the same time, ensure your product or service is fully prepared to go live and generate sales. Don’t forget to secure the necessary insurance to protect your business and its assets.
The specifics of these steps will depend on your business type and are covered in detail in The Guided Small Business Planner. For a structured approach, download the free business start checklist or invest in The Guided Small Business Planner to guide you through the process of starting your business with confidence.
Your Path to Success
Learning how to start a business from scratch is a journey that demands patience, strategy, and dedication. While the process can feel overwhelming at times, approaching it with the right tools and mindset makes all the difference. With thoughtful planning and persistence, you can create a business that doesn’t just survive but truly thrives.
