A growing number of Canadian women are leaving the traditional workforce to become entrepreneurs. Statistics Canada reports 951,600 self-employed women in Canada as of July 2012, up from 790,400 10 years ago.
Read: Expect more women entrepreneurs
And in 2009, a year of downturn for the labour market, the number of self-employed women rose 5.4% from the year before.
KPMG Enterprise offers these tips to help women entrepreneurs.
1. Do your research: Test your idea or the product with an audience that’s broader than good friends and family.
Read: Female execs need opportunities, mentors
2. Plan for growth: If your product or service is not meeting performance levels, step back and reassess your business model. You may have to refresh your business plan; be sure to consider your strengths and weaknesses. You may want to look for a new partner that compensates what you might lack.
3. Get outside advice: Be strategic and selective when you establish your advisory board. Consider joining a local association or trade group that offers peer discussion and feedback.
Read: Protect entrepreneur clients
4. Learn from mistakes: Understand why you’re struggling and drive the necessary changes. Identify two or three things your company does well and build around them. Discontinue, sell, or outsource anything else.
5. Manage cash flow: Reduce the need for cash when re-financing. Step up your cash collection and closely monitor credit worthiness of both customers and suppliers.
6. Assess risks: If you are too close to the business, you can’t objectively see any potential risks. Get an outside viewpoint.