Q&A: How women-owned businesses can prepare for unpredictable market environments

Renee M. Katz, Senior Vice President and Virtual Channel Director, Business Banking at Citizens, counsels her team on how to help women entrepreneurs secure financing and meet their business goals. Katz recently discussed the challenges facing women business owners, and ways they can prepare financially to be ready for opportunities.

Citizens: What have been some of the biggest challenges and considerations facing women-owned businesses?

Renee M. Katz:  Women business owners are known to be multitaskers — we’re not just running a business. We may be running a household as well, possibly as a single parent. We may be taking caring for a family member or an elderly relative. And if so, our responsibilities likely multiplied during the pandemic. We had to pivot both personally and professionally.

As business owners, we should all be prepared for the unexpected. With an economy and environment that is continuously evolving, we need to make sure we’re understanding the changing needs of our customers so that we can pivot to their wants and needs. I’ve found this misunderstanding alone can lead to challenges. Pivots take time to allocate the resources and funds to accommodate the change.

To prepare, we should consider stepping back and taking a holistic view of where our businesses could adjust or improve. We need to understand our cash flow, know how long we can survive with the cash we have on hand, and have a line of credit in place, should we need it.

I encourage women business owners to talk to other businesses and see what they did. It may give you an “aha!” moment and an idea you can borrow for the future.

Citizens: What are the unique challenges facing women-owned businesses?

Katz: In the past, women may have been more reticent to reach out and ask for help or advice, because many of their peers were men. But now that there are more women in business, we’re seeing more networking that can help them make connections and grow their business.

Citizens: Are there any key factors successful women-led businesses share?

Katz: Successful women are bold and ambitious. But every business is unique, and there isn’t a simple recipe. Being able to adapt, understand others, and formulate plans is what we do best, and I think all those components cultivate a foundation for success. How many children go right to their mom when they’re hurt or have a problem? We were born to find solutions.

They are willing to take calculated risks. Every decision has a upside and a potential downside, successful women are able to understand those risks and formulate a plan to take action.

Citizens: How can women entrepreneurs take advantage in a dynamic economic environment?

Katz: Knowledge is power. Stay up to date on what resources are available. There are many places working to help both minority-owned and woman-owned businesses. If you’re not already, become officially certified as a Woman-Owned Small Business through the Small Business Administration (SBA), which will give you access to resources, such as grants and federal contract opportunities. And stay open to new ideas. Consumers are driving the shift to digitization, and businesses need to adapt.

Citizens: What resources can women business owners utilize to ensure they’re on firm financial footing?

Katz: Don’t forget the basics. Make sure you have financing before you need it. Have a line of credit available and know how long your cash will last. Put funds aside so you have liquid capital you can access to account for shortfalls or slowdowns. Many businesses have to pivot as the economy ebbs and flows. Having trusted advisors or mentors is also important. Reach out to local SBA chapters or your chamber of commerce to see if there are any groups for women entrepreneurs. Banks and credit card companies all offer programs for women-owned businesses. Find a bank that’s understanding and supportive. Your banking relationship manager can offer advice on what is and isn’t working in your industry to help set you up for success.

Do you need guidance on your small business journey? Schedule an appointment with Citizens to receive support for your business.