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Is it time for a career change? Do you have a unique skill set in a niche field but want to expand your knowledge into something new? 

Many entrepreneurs started out in their fields and saw opportunities outside of the norm. They made dramatic changes in their career plans and took risks to enter new and lucrative markets. This could be you. 

Below are a few unique business ideas that rise to customer demand. Get inspired by the entrepreneurs who turned their off-the-wall ideas into big business, and see if any of these concepts would work for you.

1. Dog event planning.

Is your dog the apple of your eye? Do you want to help others celebrate their pooches and spoil them in the most creative ways possible? Consider getting into canine event planning. 

A few years ago, event planner Niki Sohrabkani took on a client who asked her to throw a party for 20 dogs and their pet parents. Sohrabkani had such a good time that she developed her own business to throw parties for pets. Today, the party planner hosts more than 30 events a year, from “pooch pool pawties” to “Howl-o-ween bashes.” 

Sohrabkani really leans into the puppy theme, catering for humans as well as the furry attendees. She always brings some “pawsecco” and leads games like “musical paws.” 

The parties are popular with high-end clientele who want to spoil their pets. Sohrabkani’s attention to detail means her events get featured across Instagram, attracting additional clients and helping her grow her unique event-planning business.

2. Online dating consulting.

Countless people worldwide have downloaded apps like Tinder, Coffee Meets Bagel, and eHarmony to meet their next potential love matches. However, the world of online dating can be just as fraught as traditional meet-ups, which is why some romance experts have turned their passions for helping friends get hitched into lucrative businesses. 

Sameera Sullivan is a New York City matchmaker and runs a service called Lasting Connections. Sullivan offers online dating consultants and assistance to help people meet potential significant others. Lasting Connections is on the high end of the online dating consultancy spectrum, charging $45,000 for a year of in-depth coaching or $6,500 for 3 months of a virtual coaching program. Some coaches offer by-hours services at $99 each. 

An online dating coach will help you create a profile—and some will choose photos and write your bio for you. Some services will filter matches for you (so you don’t have to see any rude or gross messages) and help you dress for upcoming dates. 

If you have a matchmaking knack, consider taking your business digital by getting into consulting. 

3. Edible insect production.

Are you looking for a low-calorie source of protein that doesn’t harm the environment? Consider cricket protein, which uses food-grade insects to provide post-workout snacks for gym-goers across the world. 

Insects are considered an environmentally-friendly food source because they require less space and resources to grow. Compared to how much land and water products like wheat and beef take up, insects require much less and produce a yield much faster.  

As more people realize the health benefits of eating insects, entomophagy startups are flourishing. Companies grow and sell everything from trail mix and protein bars to restaurant-grade scorpions and ants for Michelin-starred restaurants.

Get to know more about these “entopreneurs” and the niche they fill.    

4. Modern day funeral planning.

The funeral as we know it is changing. People no longer want their loved ones crying over their bodies in a church or stodgy funeral home. More people are requesting celebrations of life and unique burials that provide memorable send-offs for families. 

Alison Bossert, a celebration-of-life planner in Los Angeles, shared how she threw a “Memorialpalooza” for a client in 2019. The client, Jerry Seinfeld’s personal manager, was celebrated with 300 guests at the Sony Pictures Studios—there was catering, gift bags, a line-up of speakers, and even Seinfeld himself as the closer. This event was meant to be more of a party to honor the dead rather than a somber affair. 

Consider stepping into the world of modern-day funeral planning as more people request unique burials, parties, holograms, and other special ways to celebrate life.

5. Snow shipping

Do you live in a place with too much snow and want to get rid of it? You’re not alone. The company Ship Snow Yo will send 20 lbs or 50 lbs of real snow across the country to give you a winter wonderland wherever you are. Send snow to your relatives in Florida who are bragging about the mild winters, or order a snowman kit for yourself. 

This company highlights how you can take a seemingly undesirable resource and turn it into a valuable product. 

Every successful business starts with an idea.

These business owners prove that it doesn’t matter what your business idea is. If you have a strategic business plan and know-how within your industry, your concept can thrive. Take the first steps today to turn your off-the-wall idea into a success. Check out our funding opportunities to get your small business off the ground. 

Starting a business is expensive and entrepreneurs are always looking for ways to save money. Here are some free resources and services that will help you grow as a business and a businessperson.

US Small Business Administration.

Some of the best free resources for small business owners in the United States are actually offered by the government–the US Small Business Administration (SBA) has tips, articles, studies, and even granting opportunities. The agency’s business plan worksheets are fantastic for those just starting up or those seeking another round of funding. For those with more experience, the administration offers free business counseling for entrepreneurs at any stage. The granting and loans feature of the SBA should merit special consideration–it is likely your business is eligible for some sort of funding offered by the SBA.

Coursera and other free online courses.

Any entrepreneur will tell you that education never stops, even after you receive an MBA. We live in the age of the MOOC–that is, “massive open online course.” Institutions from MIT to Stanford offer free courses online, and they’re open to anyone. Of course, the classes aren’t typically credited, but the information is often from real professors. Thousands of business courses are available at Coursera, Udacity, edX, and other MOOC platforms. Most courses consist of video lectures and worksheets. Because of the online community aspect of the digital classrooms, you may also find yourself networking with other entrepreneurs across the globe.

Networking and meetup.

No matter what your business, networking is critical. You should seek out gatherings of entrepreneurs–the SBA and your local Chamber of Commerce can be great resources to find out about small business owner happy hours and other get-togethers. An easy online resource for finding ways to meet other entrepreneurs in real life is Meetup–there is likely a whole group dedicated to entrepreneurship in your city. You can even set up your own gatherings through Meetup, Eventbrite, or Facebook.

Google Maps

Having a curated presence on Google Maps is crucial for any physical business. You can edit your business’s contact page through Google–you can insert images and update contact information. It is important that this contact information on your Google Maps page–your phone number, website, and address–is up-to-date. Google Maps also has a Click To Call tool that you want to ensure is accurate. This tool enables users taking advantage of the popular Near Me feature, and it is a way to drive customers to your door who didn’t even know of your existence before looking you up on Google Maps.

Google My Business.

Similar to updating your information on Google Maps, you should complete a page on Google My Business. This page ensures that anyone searching for your company receives accurate information. Beyond addresses and phone numbers, you can input your hours and add information like menus. Having a complete Google My Business page can give you an SEO (search engine optimization) advantage–Google ranks websites with complete Google My Business profiles higher in web searches.

Yelp for Businesses.

Love it or hate it, Yelp is a force in the small business universe pretty much no matter where you are. The company has options meant to allow participating small businesses to stand out, though. Yelp for Business Owners allows you to highlight good customer reviews, reach out to previous customers, engage new ones, and offer special deals to Yelp users.

WordPress for websites and blogs.

Even if you don’t consider your business to be a web-based company, it is required to have an online presence. If you don’t have the budget for a web designer right now, a great option is WordPress. It is intuitive to use and the free templates are handsome–it is also a great way to nab a cheap domain name. You can build a simple website for free, and if you want to go a step further, e-commerce and other small business resources are available from WordPress for inexpensive annual fees.  

Gmail

If you already have an email account through Gmail, it might seem too obvious to mention that Gmail is one of the best free resources available for small business owners. It offers 15 gigabytes of free storage and is deeply ingrained with other business features from Google. You can easily label, filter, and prioritize your email inbox, and Gmail allows you to send out pre-written responses to commonly asked questions. For marketing and outreach, you can make lists of your contacts–such as “return customers” or “potential new clients”–and push out your messaging tailored specifically to these lists.

Google Drive for sharing with a team.

Once your Gmail account is set up, you should take a deep dive into Google’s G Suite options. Google’s Calendar is legendary for its ability to be shared, and Google Hangouts allow you to set up video calls easily. It may seem basic, but Google’s Docs, Sheets, and Slides features are some of the most powerful free business tools out there–they allow you to create documents, spreadsheets, and presentations and then share them with anyone you want. Again, it all comes with 15 gigabytes of free storage.

Doodle for scheduling.

The name is childlike, but Doodle is a free and accessible tool for scheduling. This tool is especially useful if you have a team of, say, busy freelancers who barely have an hour to spare. You can request the availability of the entire team for a few weeks at a time. Even better, the respondents can fill out a Doodle within a few seconds–no sign-ups or logins are required.   

Your state's small business agency.

Along with the SBA, your state government likely has a massive number of free resources for small business owners–your tax dollars at work. Each state has a small business development center, sort of like a miniature SBA. Along with letting business owners figure out what sort of permits or registrations are required, these departments often have educational information or funding opportunities. The SBA has links to these agencies in every state.

SCORE educational and mentorship resources.

The nonprofit SCORE has a bunch of resources for small businesses across the country, from online workshops and podcasts to free mentorship opportunities. Especially if you’re a budding entrepreneur, gathering information from the trifecta of the SBA, your state small business agency, and SCORE should be one of your first steps.

BPlans.com for business plan templates.

Business planning documents are necessary for several reasons. Any bank or grant opportunity will want to see this paperwork. On a more fundamental level, business planning documents are good for you to see and work through what your company’s future looks like. BPlans.com has a server full of business plan templates, all for free, that span dozens of industries. The website also has other helpful features, like how to develop your elevator pitch.

Crowdfunding platforms

Depending on the nature of your business, crowdfunding platforms like Kickstarter or Indiegogo can be a great way to start raising capital. You can essentially start selling a product before your inventory is stocked. These platforms are free in the sense that it is free to set up–they will take a fee from the money raised. If your business is more content-based–if you are a blogger, artist, or subscription box creator, for instance–take a peek at Patreon, too.  

Canva for graphic design.

Especially in this age of websites, graphic design is in high demand. If you don’t have much in your budget, Canva is a free option that is easy-to-use even for the technology-impaired. The service offers templates for digital graphics like Facebook cover images or email graphics, as well as printable options like flyers or posters. Other free graphic design programs include Spaces, which makes creating logos a snap, and Piktochart, fantastic software for creating fetching infographics or flowcharts.

Mailchimp for email marketing.

Once you’ve created your graphics, you’ll want to send them out to your customers. Mailchimp has terrific free options for small businesses, making email marketing intuitive and beautiful. You can send up to 12,000 emails messages to 2,000 subscribers for free. Mailchimp even offers analytical help–you can check open rates and other data so you can get a handle on what sort of email campaigns work best.

Slack

Slack is now the gold standard for inter-team communications at firms big and small. It is far less unwieldy than group text messaging and allows you to create different channels with different users. You can easily send around pictures, links, and files. Slack is also a secure way to direct message individuals in the team.

Legal help from Docracy.

When it comes to legal matters, you probably shouldn’t be solely focused on saving money. However, if you are just starting out, Docracy is a free resource full of sample contracts and other legal document templates. While you will still probably want to hire an attorney to review everything, it is a good starting place. Docracy allows you to digitally sign and share documents for free, too.

Quick—when was the last time you calculated your business’s profit margin?

If you answered “Last week,” excellent! And if you don't remember, you’re probably way overdue.

But were your numbers good or bad? Every company is unique, so the yardstick you measure your profit margins against isn’t the same one your neighbor uses. What's considered a “good" range varies across industries—restaurants average a slim 6–8%, whereas the advertising and public relations industry averages a more generous 11–20%.

That means your answer should probably be, “It depends.” Here’s why.

What are profit margins?

Profit margins are key performance indicators that can help you make strategic decisions to keep your business profitable and healthy.

To go deeper, we cover various different profitability ratios here, including how to calculate them and what their purpose is. The 3 most commonly used are:

• Net: essentially shows a company’s bottom line
• Gross: can indicate how well strategies like a price increase are working
• Operating: can show out-of-control expenses

So what’s the difference between a profit number and a profit margin? Profit numbers show a dollar amount—e.g., a $5 profit on an item sold. Profit margins are a percentage that allows your number to be compared against industry averages and competitors or to reveal trends within your own business.

For example, imagine a bakery wants to know if 2 desserts are equally profitable. The calculations for this example are:

• Gross profit = net sales – cost of goods sold (COGS)
• Gross profit margin = (gross profit / net sales) * 100

Both desserts generate a $5 gross profit per unit. However, vanilla cake has a much higher gross profit margin. That kind of insight might influence whether pie stays on the menu or suggest that social media promotionsshould market the cake.

What should your profit margin be?

Once you've calculated your profit margin, how do you know if it's good or bad? In other words, what should your profit margin be? The answer is—it depends.

According to the Corporate Finance Institute, the average net profit for small businesses is 10%, while 20% is considered good. But your mileage may vary depending on a variety of factors.

For example, a company’s size and life stage can heavily influence profit margins. It wouldn’t be reasonable to expect a mom-and-pop retail store to have the same profit margin as a monster retailer like Walmart. Big companies have more leeway for spreading out or reducing costs through automation than small businesses.

Seasonality can significantly alter your margins, too. No one would expect a ski resort's summertime profitability margins to resemble the values calculated during a snowy winter season.

The economy can also shift what’s normal for an industry—consider the hotel industry's profit margins during the COVID recession. During the shutdown, some hotels improved their gross profit margin by eliminating room service or reducing housekeeping. But their net profit margin, which included mortgage or rent on a commercial building, probably wasn’t even close to normal.

And each industry's typical profit margin range depends on its COGS and operational needs. Think about the difference between a restaurant, a dental practice, and an independent technology consultant—their revenue and expenses are vastly different. Restaurants tend to have high COGS, as meal preparation requires perishable ingredients. The dental practice’s expenses include costly X-ray equipment and malpractice insurance. The technology consultant would most likely have the lowest operating expenses of all 3, as labor would be its main expense. Thus, these businesses' “normal” net profit margins aren’t comparable to each other.

You can find industry averages in various online databases, via your favorite trade association, or even by asking the research librarian at your local library—and you can use those ranges, along with knowledge of your own business’s variables, to judge if your margins need improvement.

Remember, however, that profit margins fluctuate and can be impacted by market conditions. The margins in this chart were calculated in January 2022, during a period of higher-than-normal (8%) inflation.

How to improve your small business's profit margin.

Now that you’ve completed the calculations for your business, how can you increase your profit margin?

Every business can increase net profit margin (their bottom line) by either increasing revenue or decreasing expenses—or perhaps both. The trick is to understand the business impact of pulling each lever. Will your margins improve more if you raise your prices or negotiate lower pricing with your suppliers?

For example, a restaurant impacted by rising inventory costs could charge more for each item. But their customers are price-sensitive, so they may choose to reduce expenses instead by cutting portion sizes.

On the other hand, a consulting business could reduce expenses by modifying internal workflow processes. Suppose a senior consultant spends 5 non-billable hours a week inputting timecards and expenses. In that case, those tasks probably need to be automated or assigned to a lower-cost data entry clerk to minimize labor costs.

Why should you care about your profit margin?

Numbers are great, but do they really matter? Short answer: yes. Tracking your profit margin can help you to make plans and decisions based on facts, not gut-feel. Scoring a new client can make you feel flush with cash—but only a review of your profit margins will tell you for sure. Remember our dessert example from earlier? Not all profits have the same value.

Monitoring profit margins also helps you work towards your financial plan. It’s similar to a New Year’s resolution to lose weight: after a week-long cruise vacation, a weigh-in might be a reminder to eat healthy again, but your 6 months of historical weight tracking shows that your long-term plan is working, with only a slight hiccup post-vacation. Profit margins do the same thing for your business—they allow you to make course corrections in the short term while providing context in the overall big picture.

Profit margins may also be a factor in certain types of small business financing, and a potential lender may review a business’s profit margin before making a decision, especially for more conventional loan products, like a term loan. While the borrower’s ability to service the requested debt is paramount, current debt service and profit are also important to the equation.

You're in charge of your profit margin.

Take steps to calculate and monitor your profit margins regularly. With some minor tweaks to revenue or expenses, you might find your profit margins soaring from okey to outstanding.

*Disclaimer: The information provided in this post does not, and is not intended to, constitute business, legal, tax, or accounting advice and is provided for general informational purposes only. Readers should contact their attorney, business advisor, or tax advisor to obtain advice on any particular matter.

For decades now, it’s been a game of catch-up for women in business—and they’ve gained a lot of ground. From 2019 to 2023, the number of new women-owned businesses grew at nearly double the rate of businesses owned by men. But the struggle is far from over. The statistics on women-owned businesses below highlight just how far women have come and the disparities we’ve yet to overcome.

How many women-owned businesses are there in the U.S.?

• Women are now majority owners in at least 35 percent of U.S. employer firms.
• In total, women own 13.8 million businesses employing 10 million workers and generating $3.9 trillion in revenue across the U.S. 
• Women own 28.6% of employer firms with a revenue of $1 million or more.
• Of the 2 million employer firms owned by women in the U.S., 24% are owned by minorities.
• 3.6% of women-owned employer firms are owned by Black or African American women.
• 13% of women-owned employer firms are owned by Asian women.
• .8% of women-owned employer firms are owned by Native American or Alaskan native women.

What industries do women start businesses in?

Women start and run businesses in every industry.

Which states have the highest percentage of women-owned businesses?

Western states have the highest percentage share of women-owned businesses.

Which states have the highest number of women-owned businesses?

High-population states have the highest number of women-owned businesses.

Stats on the growth of women in small business.

The number of women-owned businesses has grown substantially over the past decade.

• The number of women-owned businesses in the U.S. increased 13.86% from 2014 to 2021.
• A 2019 report from the JPMorgan Chase Institute found that businesses owned by women and businesses owned by men had equal survivability rates based on an analysis of 138,000 companies founded within the decade prior. 

Stats on disparities in male- and female-owned small businesses.

Despite the rapid growth, women still face challenges in obtaining funding and growing their businesses.

• Women-owned businesses received just 32.6% of the approvals and 28.4% of the dollars offered in SBA 7(a) and 504 loans in the 2023 fiscal year. 
• Women are more likely to apply for a loan with an online lender. 30% of women business owners reported applying for a loan through an online lender vs. 20% of men-owned businesses.
• Women are less likely to receive the full amount of funds requested. 45% of women-owned businesses were fully approved for the loan requested vs. 55% of men-owned businesses in 2023. 
• 25% of women are denied a business loan vs. 19% of men.
• In 2021, 4.63% of federal contract dollars when to women-owned small businesses.
• 38% of women-owned businesses are operating at a profit vs 47% of men-owned businesses.
• 33% of men-owned businesses have annual revenues of $1 million or more vs. 16% of women-owned businesses.

The American business landscape has made progress for women entrepreneurs. Before federal legislation was passed in 1988, women business owners needed a male co-signer to apply for a loan. While lenders need to understand that women-owned businesses are as safe an investment as male-owned businesses, female entrepreneurs should also take the steps to apply for capital, particularly when that capital can be used to help grow the business. 

Chinese culture is known for many things. Not only are they know for their business sense, but for their philosophy as well. So it’s no wonder that one of their most popular philosophers, Confucius, has a number of quotes related to running a business. Here are 5 of the best quotes by Confucius on running your small business:

Perseverance

“It does not matter how slowly you go so long as you do not stop.”

When applied to running a small business, it means you shouldn’t panic even if growth is slowing down. As long as your small business is not shrinking or losing money, you should not worry. Progress is always good even if it’s not always moving at breakneck speeds. Remember that running a business is a marathon, not a sprint. Even if you're not going to IPO in the first 3 months, if you persevere and keep at it, you will outlast many of your competitors.

Taking action and implementation.

“I hear and I forget. I see and I remember. I do and I understand.”

When running a business, you should remember that all the theories, planning, feasibility studies and constant meetings will never amount to anything if there is no implementation. Business is about hearing, seeing, doing, and understanding. Watch what your competitors are doing, keep your ears close to the ground, and take action.

Preparing for worst-case scenarios.

“Success depends upon previous preparation, and without such preparation there is sure to be failure.”

Confucius places a lot of importance in preparing for the worst-case scenario, regardless of how much success your business is currently enjoying. This is because he believes that when you find success, you have much more to lose and as such must ensure that your business should take any potential crisis into account. Keep in mind that when it comes to running a business, encountering a crisis is an eventuality. It’s not a matter of if, it's a matter of when.

Skill development

“The expectations of life depend upon diligence; the mechanic that would perfect his work must first sharpen his tools.”

In this quote, Confucius underscores the importance of continuing education and keeping one’s skills fresh. In any industry, there will always be new technology or practices, or standards to follow. If your knowledge is stagnant, you could be left behind by competitors who keep abreast of industry trends, and those who continue to learn new principles or skills.

Learning from strategy.

“He who learns but does not think, is lost! He who thinks but does not learn is in great danger.”

This quote teaches that when running a business, learning and strategizing always go hand in hand. There should always be an effort to learn from any strategy you’ve implemented – why it failed or why it succeeded. A business shouldn’t just jump from one strategy or campaign into another without learning from it. On the other hand, a business shouldn’t just focus on theories and strategies without ever considering if it fits with their business model or campaign. Learning something new from a competitor isn’t so useful if it does not apply to your business.

What about you? Do you have any other quotes by Confucius on running a small business?

Have you heard that you need to spend money to make money? It’s an oft-repeated sentiment, but it’s that “spend money” part where a lot of businesses get stuck. 

When you’re just getting your business idea off the ground and are pinching every last penny, accessing the capital you need to gain momentum can be a major and frustrating roadblock. Even more disheartening? Several of the most common reasons for small business failure come back to the lack of cold, hard cash. 

That’s where angel investors come (or should we say fly?) in.

What is an angel investor?

Let’s start with a simple angel investors definition: An angel investor is someone who provides capital to an entrepreneur or small business in its very early stages. We mean very early—sometimes the business is nothing more than an idea or a prototype. In exchange for financial backing, angel investors usually take equity in the company. 

Why are these investors called angels? Well, because they often act as a saving grace for a startup. Since angel investors are offering money at such an early stage, it’s considered a riskier investment. For that reason, angel funding is frequently one of the only options for new businesses struggling to access other, more traditional types of funding. 

Angel investors vs. venture capitalists: Is there a difference?

There's quite a bit of overlap between angel investors and venture capitalists. They're both investing money into a business in the hopes of getting a return.

However, there are some

There’s quite a bit of overlap between angel investors and venture capitalists. They’re both investing money into a business in the hopes of getting a return.

However, there are some notable differences between these 2 types of investors, including: 

• Investment stage: Angel investors invest early to help a business get started or go to market, whereas venture capitalists (VCs) typically like to finance the growth and expansion of a business that’s already a little more established. 
• Investment source: Venture capitalists invest money that’s pooled from other companies and funds, while angel investors typically invest their personal money. 
• Investment amount: For that reason, angel investments are typically smaller than the investments of venture capitalists. Statistics show that in 2020, the median deal size from an angel investor was $1.2 million. In comparison, an early VC invested $4.5 million, and a later VC invested $9.9 million. 

See? There's a distinction between these investors. However, both angel investors and VCs generally provide strategic advice, support, and expertise to the startups they invest in, along with financing. After all, any type of investor ultimately wants the business to be successful.

How to find angel investors for your small business.

Now that you know the basics, let’s get to the good stuff—how do you find angel investors?

If you’re like most people, you don’t have a huge web of connections who are willing to throw thousands or even hundreds of thousands of dollars at your startup—and that can make finding angel investors a challenge.

The good news is that there are some steps you can take to find funding for your brand new business (or even your business idea). 

1. Know the type of investment you're looking for.

As with any investment, it’s important you understand what you need. That will provide a lot of direction before you start pounding the pavement looking for money.

Do you need $10,000 to get your business going? Or do you need $1 million? Are you hoping to get what you need from a single angel investor? Or are you willing to open things up to many different investors? 

Answers to questions like those will not only help guide you as you start your search for investors but also make you look polished and confident—even if your business is brand new. 

2. Start with the people closest to you.

While many businesses discern between angel investors and a “friends and family round,” there’s quite a bit in common. In fact, many angel investors fund businesses of their friends and family.

So when you start your search for business investments, it can be best to begin in your backyard. Your loved ones likely won’t be investors who are accredited by the Securities and Exchange Commission (SEC), but they can still help get your business going. 

In fact, friends and family are a huge source of investment for startups, investing a combined $60 billion per year. In comparison, angel investors invest $20 billion in a year. 

When approaching friends and family for money for your small business, make sure you:

• Have a polished pitch: Knowing them personally isn’t an excuse to be sloppy. Clearly state the details of your business (including your mission, business plan, target market, and more) and the type of investment you’re looking for.
• Keep communication professional: Treat your friends and family like you would any business investor. Set a meeting and prepare for a formal presentation. You want your request for funding to be seriously considered rather than brushed aside as an off-hand remark.
• Give an out: Mixing business and personal relationships is always complicated—especially when you’re asking for money. Don’t pressure your friends and family, and make sure you offer an opportunity to turn you down without any hard feelings. 

Of course, it’s entirely possible the people in your immediate circle don’t have the means to invest in your business, even if they believe in you. Regardless of if they open their wallets, remember to appreciate their other methods of support and encouragement—those are important too. 

3. Grow your network.

Perhaps you don’t know somebody who’s prepared to invest in your business. But your friend might. Or your neighbor. Or your uncle. You get the idea. 

We’ll spare you the clichés about the importance of your network, but this web of contacts is particularly important when you’re looking for investments. 

Your best place to start is to connect with other small business owners in your area. The small business community is…well, small. They might have some insight into angel investors who are looking for new opportunities. 

Additionally, it can be helpful to find a mentor through SCORE, a nonprofit organization and partner of the US Small Business Administration (SBA). These mentors are established and experienced business professionals who have access to hard-won information and resources—which might include an “in” with an angel investor. 

4. Turn to designated platforms.

Thanks to the internet, we have piles of information right at our fingertips. There are a number of platforms designed to help entrepreneurs find angel investors without even leaving their couch. 

Some of the best options to check out include: 

• Angel Capital Association (ACA): Using the ACA member directory, you can choose your location and see a list of angel investors near your area. 
• AngelList: AngelList has a long list of angel investors in North America. You can also see details like their location and number of investments.
• Invstor: Invstor is another platform designed to help you find angel investors and venture capitalists. You’ll need to post a funding request by submitting some basic information about yourself and your business (like your industry and how much funding you need), and then choose if you’d like to access the investor network yourself or have Invstor send out a request to the network so interested investors can contact you. 

LinkedIn can also be helpful. Use the search functionality to search “angel investor” and then click the top menu option for “people.” From there, you can apply additional filters to narrow down by location, company, school, or even your degree of connection.

Pros and cons of angel investors.

For many small business owners and start-up entrepreneurs, the idea of an angel investor seems nearly divine – it’s right there in the name. Angel investors offer financial backing for infant businesses, many of which have a hard time finding funding from traditional sources.

The money an angel investor provides can be the difference between making your idea a reality or having it to keep it stored in a desk drawer. However, an angel investor is not going to dump a bunch of money in your bank account without any expectations. There are clear trade-offs that any business owner just starting out should be aware of.

Pros

• The money is not a loan: Probably the most exciting part about an angel investor is that the money they offer is not a loan, unlike funding you would find from a traditional bank or even from family. Instead of providing a loan of a specific amount of money, an angel investor buys an ownership stake in your business. Hopefully, the venture succeeds and both you and the investors make money. If your business never gets off the ground or fails to be profitable, the investor won't expect money back. A bank, of course, expects a loan to be repaid no matter whether your business sinks or swims.
• Angel investors believe in risk: Famously, angel investors believe in extremely risky ventures on the cutting edge of technology and industry. They are far more willing to back risk than a traditional bank because they don't expect their money back if you fall flat. Even if you get a bank loan, the bank might restrict the amount you can borrow at once to reduce the chance you won't get their loan back. Most angel investors have years of experience working with small business owners, so they have a sense for good ideas and quality people, even if a business concept seems outlandish now.
• Angel investors have a lot of money: Angel investors, especially the deep-pocketed Silicon Valley firms, have a lot of money. Depending on the size of your business, an angel investor can infuse your company with cash usually ranging from $25,000 to $500,000. Better yet, they can provide this money quickly and usually with no expectations that it will be returned. This investment can be critical for a business to hire the employees and buy the equipment necessary to get a venture off the ground. Because it is not a loan, the business owner does not have the added stress of worrying about how to repay the investment.

Cons

• The money comes with strings attached: An angel investor will not just hand you a check and leave you alone to do whatever you wish with the money. Angel investors will typically take a relatively active role to ensure the business grows toward profitability. This input can lead to conflict with a business owner. Also, by giving away equity, you are reducing the amount of money you would earn if the business is successful. It may not seem important when a business isn't earning money, but that will quickly change once you're profitable. Carefully review and understand any angel investor agreement; be suer to look at it with the lens that your business will earn a lot of money someday soon.
• They will push you: Ultimately, an angel investor wants his or her stake in your business to become profitable as soon as possible. Therefore, an angel investor's funds come with the expectations that you will expand and grow on a timetable that may not match your own. Perhaps profitability is not your primary motivation – maybe you want to sell tasty cupcakes in an underserved area or create a new social media platform. You might find yourself in conflict with an angel investor fast because your goals don't align. Before accepting any agreement, make sure you understand and harmonize with an angel investor's long term plan for your business.
• They expect a return on their investment: Of course, the stake an angel investor wants in your business is considerable. It is normal for an angel investor to want a 25% return on their investment. This expectation means that once your company turns a profit, an entire quarter of these profits will go to the angel investor. This amount can grow exponentially if your business takes off. Because they stand to make so much money, angel investors may seek to control more of your business than you like. Additionally, angel investors are usually not interested in first-time small business owners, no matter what the pitch is. they want to know that you know how to run a business before handing over thousands of dollars.

Angel investors aren't your only option.

Many businesses look to angel investors to get the financial backing they need at an early stage, and these types of investments certainly have their merits.

However, it’s not your only option to get your business rolling. You could crowdfund your business through a platform like Kickstarter or even apply for a business loan. 

While the little voice in your head might be telling you that you’ll never qualify for a loan, that’s not necessarily the truth. With Lendio, you can fill out a simple application (we promise, it takes 15 minutes), compare your lending options, and get your capital in less than 24 hours. 

That quick application could be all that stands between you and the funding you need—and you won’t even have to part with equity or beg your loved ones for money to get it.

The number of small businesses has been increasing in the United States over the past several years. Last year, the White House announced that more than 10 million small businesses were created in 2021 and 2022. Along with its growth in the total number of businesses, the U.S. is also seeing growth in the number of women-owned businesses in the country.

The number of women-owned businesses in the U.S. increased 13.6% from 2019 to 2023, making up 39.1% of all of the country’s businesses, according to research from Wells Fargo. In total, women own 13.8 million businesses employing 10 million workers and generating $3.9 trillion in revenue across the U.S. While this growth may be encouraging for women small business owners to see, it’s helpful to see which states are more favorable to start and run a new small business in.

Lendio analyzed seven metrics to determine the best states for women small business owners, including factors such as share of employer businesses owned by women, percentage of female-owned businesses that earn a revenue of $1 million or more, percentage of patents filed by women, and women’s VC funding (deal count) per woman-owned businesses.

Key findings

• Washington is the no. 1 best state for women small business owners. The percentage of woman-owned businesses in Washington outpaces every other state at 42% and has the highest percentage of female-owned businesses that earn a revenue of $1 million or more (34%).
  
• Delaware has the highest women’s VC funding deal count rate per women-owned businesses in the country. 6% of women-owned businesses in Delaware receive VC funding. This is a much higher percentage than the rest of the states, averaging at 1.16% of women-owned businesses receiving VC funding. Many businesses around the United States are incorporated out of Delaware, which is a contributing factor to this high percentage.
  
• Top states are mainly concentrated in the west. Delaware and Maryland are the only non-western states that reached the top 10 states on this list. Top states typically had higher shares of employer businesses owned by women (ex: 39% in Montana and Oregon) and higher percentages of growth of women-owned businesses from 2012 to 2020 (ex: 22% in Utah).

Top states

No. 1: Washington

Washington is a great state for women small business owners, considering 42% of its small businesses are owned by women. Of those businesses, 34% make a revenue of $1 million or more. Washington’s employment rate among women (59%) is also high compared to other states. Other studies have also consistently ranked Washington as a great state for women’s overall economic and social well-being.

No. 2: Colorado

Colorado scores high for percentage of employer businesses owned by women (36%), employment rate among women (63%), female-owned businesses that earn a revenue of $1 million or more (27%), and percent change of women-owned businesses from 2012 to 2020 (19%). Each of these high scores makes Colorado a well-rounded state for women small business owners.

No. 3: Delaware

With a high percentage of patents filed by women (13%) and the highest percentage of women’s VC funding per woman-owned businesses (6%), Delaware is a great state for women small business owners to start and run their businesses in.

No. 4: Oregon

Scoring higher than the averages in most of the metrics we measured, Oregon is an excellent state for women small business owners. Some categories it scores exceptionally well in include percentage of employer businesses owned by women (39%), percentage of female owned businesses that earned a revenue of $1 million or more (29%), and percentage of patents filed by women (15%).

No. 5: California

As a powerhouse in share of employer businesses owned by women (38%), percentage of female-owned businesses that earned a revenue of $1 million or more (32%), and percentage of women’s VC funding per woman-owned businesses (4%), California can be a great state for women small business owners.

No. 6: Utah

With a high growth in the number of women small business owners between 2012 and 2020 (22%) and high employment rate among women (60%) Utah is a great place for women small business owners to start and run their small businesses.

No. 7: Maryland

With more and more women becoming small business owners in Maryland (12% increase between 2012 and 2020), the state can be a fantastic option for women looking to start and run their own small businesses. The state also has a high percentage of women filing patents (14%), making it a great place for women inventors.

No. 8: Arizona

Arizona has a high percent increase of women small business owners between 2012-2020 (17%) and a high percentage of female-owned businesses making a revenue of $1 million or more (30%). These high rankings place Arizona eighth on our list, making it an outstanding state for women small business owners. 

No. 9: Hawaii

Hawaii is an exceptional state for women small business owners. The Aloha State scores higher than average in share of employer businesses owned by women (38%), percentage change of women owned businesses between 2012 and 2020 (29%),  and percentage of female-owned businesses that made a revenue of $1 million or more (25%).

No. 10: Wyoming

Much like Hawaii, Wyoming also scores higher than average in share of employer businesses owned by women (38%) and percentage of female-owned businesses that made a revenue of $1 million or more (31%). Landing at spot number ten, Wyoming is a great state for women small business owners.

Runners-up

The runner-up states tend to more broadly excel in their share of employer businesses owned by women (34% average) and in their employment rates among women (58% average). For example, Montana has a 39% share of employer businesses owned by women and 61% of its women are employed.

Few other runner-up states scored lower percentages in the categories stated above. However, those states make up for lower-than-average percentages in these categories with higher-than-average percentages in other categories. For example, Vermont ranks at 32% in its share of employer businesses owned by women (lower than the average of 34%), but 13% of its patents are filed by women (11% average) and 2% of its women-owned businesses received VC funding (1.16% average).

5 tips for women to start businesses.

Women have valuable experiences and skills they can contribute when building their own businesses. While it can be exciting to run your own business, getting your new gig up and running takes a great deal of effort. These tips will help you get going with your startup:

1. Develop a robust business plan – Start with a well-researched business idea, focusing on your unique value in the industry or niche that you’ve chosen. Consider finances, marketing tools, and your operations plan.
   
2. Research loan and grant opportunities for women – The SBA offers programs, grants, and loan aid for women entrepreneurs. One example of aid the SBA provides is through the Office of Women’s Business Ownership, which helps advocate for, educate, and support women entrepreneurs. Various organizations and nonprofits also offer financial support and programs for women entrepreneurs.
   
3. Set up strong legal and financial foundations – Research the differences between LLCs, sole proprietorships, and corporations and choose what type of business structure makes that most sense for your business. Also, separate your personal and professional finances and make sure you are complying with federal and local regulations.
   
4. Network – Connect with other entrepreneurs, women, and mentors who can help in the entrepreneurship journey. Spread the word about your business by joining groups specific to your industry and getting involved with the local business community.
   
5. Practice patience – Starting and running a business takes time and patience. By putting the right tools in place, you'll be able to stay tenacious while establishing your business.

Conclusion

Women’s contributions to the American economy continue to grow and become more pronounced. While women-run businesses are becoming more common, they still come across hurdles that aren’t as common for male-run businesses to face. For example, as of February 26, 2024, women-owned businesses received just 32.6% of the approvals and 28.4% of the dollars offered in SBA 7(a) and 504 loans in the 2023 fiscal year. 

This fact, along with our findings emphasize the importance of empowering and acknowledging the importance of women entrepreneurs, encouraging their continual success in business.

Methodology

We used the most recent data for the seven metrics listed below to determine the best states for women entrepreneurs. We used a Z-score distribution to scale each metric relative to the mean across all 50 states and Washington, D.C., and capped outliers at 3. A state’s overall ranking was calculated using its average Z-score across the seven metrics. In cases where states were missing data due to a low sample size, the remaining metrics were averaged to determine their overall scores. Here’s a closer look at the metrics we used:

• Share of employer businesses owned by women including shared ownership, 2021 (Census Bureau)
• Employment rate among women, 2022 (Bureau of Labor Statistics)
• Percentage of female-owned businesses with a revenue of $1 million or more (Census Bureau)
• Percentage change in total women-owned businesses (total number of employer and nonemployer firms) from 2012 (Census Bureau- 2012) to 2020 (Census Bureau- 2020)
• Percentage of patents filed by women (U.S. Patent and Trademark Office)
• Women’s VC funding (deal count) per women-owned businesses (Pitchbook)
• Gini index of overall income inequality (Census Bureau, 2021)

*Information provided on this blog is for educational purposes only, and is not intended to be business, legal, tax, or accounting advice. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of Lendio. While Lendio strives to keep its content up-to-date, it is only accurate as of the date posted. Offers or trends may expire, or may no longer be relevant.

Creating and maintaining a vision for your company is just as important for your businesses long-term success as marketing and selling is. Vision not only motivates you and your employees, it helps you stay focused on the goal and work together toward something.

Visualizing goals

"If you want to reach a goal, you must 'see the reaching' in your own mind before you actually arrive at your goal."

– Zig Ziglar

Researchers have proven that visualizing an outcome and the process you'll use to get there can substantially increase the likelihood of you reaching your goal. Whatever your business's goals are, visualize it constantly. Think about what your business will look like when you get there.

Direction

"To the person who does not know where he wants to go there is no favorable wind."

– Seneca

If you don't know where you want your business to go or what you want from it then you're going to be lost, and nothing will go your way. How could it when you don't know what direction you want to go? As a business owner, part of your job description is leading your company in the right direction. Plot a course, and steer your ship, so you're not wasting time and energy being blown around the entire ocean.

Dreaming and having a vision.

"Whatever you can do or dream you can, begin it. Boldness has genius, and magic and power in it. Begin it now."

– Goethe

Dreaming and having a vision is important. It is the first step to creating something. But being confident and working hard are the key ingredients which will help your business succeed. So make sure you are confident about where you want to take your business then just start doing it.

Leadership

"Management has a lot to do with answers. Leadership is a function of questions. And the first question for a leader always is: 'Who do we intend to be?' Not 'What are we going to do?' but 'Who do we intend to be?'"

– Max DePree

A leader is someone who leads the business to success. But how can the leader lead, if he himself does not know where he's going? As a leader, you should always ask the right questions and in this case the right question is 'who do we intend to be?'. This means that having a vision for your business is important, once you have that, then you can formulate a plan as to what would be the best way to reach that vision.

Having a growth mindset.

"If you limit your choices only to what seems possible or reasonable, you disconnect yourself from what you truly want, and all that is left is a compromise."

– Robert Fritz

When you dream, you should dream big. Similarly, when you envision something for your business, you don't have to limit your vision to something which seems possible. Think outside the box, be unique and try to see beyond the limits. If you are able to do that, then your business will definitely grow and your business will stay on the forefront of innovation.

Lendio is a business lending marketplace that allows you to compare multiple financing offers side by side. It’s a low-pressure way to explore different business loan terms in one place. Compare options for a small business loan today.