Women mean business

10:08am Thursday 21st December 2006

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More and more women are now running their own companies - and many are beating men in the rush to go it alone. CHARLOTTE PERCIVAL reports.

FAR from being chained to the kitchen sink, more than one million women in Britain are now running their own companies.

And according to new statistics, they are beating men in the rush to be their own boss.

In 1984, there were 645,000 self-employed women in the country, according to the Office For National Statistics.

That has risen to one million this year, an increase of 62 per cent over 22 years.

Men are trailing behind, with an increase of 34 per cent on the same period, with 2.7 million men in charge of their own companies.

Multi-millionaire Karen Jones, who used to live in York, is one example of how women can get on in business. She is one of the UK's most successful female entrepreneurs, recently overseeing the sale of a major pub group for £2.7 billion and had been awarded a CBE.

The mother-of-three was dubbed "pub superwoman" by industry experts in January, and is rumoured to have made about £15 million after co-ordinating the sale of Spirit Group to Punch Taverns. She was in charge of more than 2,000 pubs - including York watering holes The Flying Legends, Bar 38 and Ye Olde Starre Inn - and 40,000 employees.

Karen is not alone in her success. Other high-flyers include former York Boat owner Denise Howard and PR consultant Jennifer Middleton.

There are many reasons why women succeed in business, says Fiona Scott, North Yorkshire representative for Women in Rural Enterprise (WiRE).

Typically, they are well organised, assess risks first and are willing to share their experience and mistakes. They are also very resourceful, she says.

"Late last century when foot and mouth disease was a problem, it was farmers' wives looking at ways to diversify and fund alternative sources of income," she said.

"When women need to get alternative sources of income they are excellent at making a move and starting."

They do, however, face great challenges, she says.

"Women are often frightened of failure and want there I's dotted and their T's crossed before they take the leap of faith," she said. "It comes down to a lack of confidence in women in their ability and being taken seriously."

Being self-employed can provide great flexibility for women, says Stuart Matheson, senior financial adviser at Grosvenor Financial Consultants, in Swinegate, York. But it can provide opportunities, too.

"I think it's a way around the glass ceilings that can exist in organisations for women," he said.

"Some women think to get to the top can prove very difficult and one way around that is to do it yourself, have your own business and prove it can be done."

York MP Hugh Bayley was not surprised by the new figures. He said that in York alone, the number of small businesses with a turnover of over £58,000 rose by 400 between 1997 and 2003.

"I've been monitoring the number of businesses set up in York and they've been rising sharply, both for men and women," he said. "Also, the number of new businesses which are surviving is increasing."

He said the figures might encourage employers to be more flexible with childcare issues.

"One of the reasons women set up business on their own is to get more control of their own conditions of work than many employers are willing to give. Employers are at risk of losing their most enterprising employees, because it's the most enterprising ones which set up on their own," he said.

Vale of York MP Anne McIntosh also thought the figures were encouraging.

"They show women are courageous enough to take risks," she said.

"In the present economic climate, if you have your own business you can employ people to help you and it gives you more flexibility if you have a family and it opens up a whole lot of possibilities, although it's not without its own risks as well."

Case studies...

"I think there are lots of women like me, who have got an idea and they've got to do it and that's it"

AS A director of two property companies, Denise Howard isn't afraid to take risks.

Best known for her hand in the successful YorkBoat business, Denise set up her first company aged 25, when she began a small marketing consultancy.

"It never occurred to me to try and get a job," says Denise, who is a director of Smilesallround estate agency. "I get very passionate about doing things well and I thought I had something to offer."

The company grew and a few years later, together with her husband, she bought White Rose Line, the company which became YorkBoat.

YorkBoat quickly grew in success and when the couple sold it in 2004, they already had ideas for new projects.

Denise thought of starting a tourism company, but instead used her estate agency contacts to start one of her own, together with a business partner.

Smilesallround is going from strength to strength, she said, and she may start new ventures in the future.

"I'm a serial entrepreneur," she said.

"I think there are lots of women like me, who have got an idea and they've got to do it and that's it.

"Any entrepreneur will tell you sometimes it's a question of seeing opportunities that are all around you and deciding to do something about it."

She loves the buzz of making something happen, and even the fact she can never switch off.

Denise, who has an 11-year-old daughter, doesn't think setting up a business is gender specific. It's not about whether you're a man or woman that makes setting up, running and growing a business a success or a failure, she says.

"I think the issues are about do you have vision, leadership, confidence, capability, drive and the determination to work all the hours you need to do to make something successful?

"I'm very lucky because my husband and I run our own businesses and have been successful at what we do both together and individually."

"The most difficult thing, especially for women, is to know what to charge"

IT was the need to fit work around young children that inspired Jennifer Middleton to start her own business.

Jennifer, who runs PR consultancy Lemon Zest from her Cawood home, wanted a job with low overheads that would fit around her son and daughter.

With her background in PR, Jennifer needed only a computer and a phone to get started and soon established an impressive array of clients.

Her turnover is now increasing 50 per cent year on year.

"Being self-employed gives me the freedom to plan my day," she said. "And what was the making of me was there are no limits to what you can do. You're not waiting for it to happen; you're the one getting contracts and putting your name out there."

Jennifer, 36, recommends working from home if you can, in a business you are passionate about, and having the confidence to succeed.

"The most difficult thing, especially for women, is to know what to charge," she said.

"We tend to undervalue ourselves as women, whereas men will always charge a little bit more. I think you have to be confident otherwise you're going to fail.

"There is no safety net, but you have to develop that confidence, believe in yourself and be bold and value yourself."

And it's all going swimmingly for Vicky Pettitt...

THERE was no financial motive for Vicky Pettitt to set up her swimming club.

Splish Splash was established to cut the long swimming lists in Yorkshire, says the 28-year-old, who fits running the club around her IT job with the NHS.

Over a year on and Vicky has launched sessions in York, Pocklington and Leeds.

"I haven't had any worries, but what is crucial is feedback from parents and listening to what they say," she said. "I had to be self-motivating and liaise with schools and venues and give out flyers, but it's going really well."

Vicky wants to launch more sessions, and to branch out into pool parties next year.

"Children who were on waiting lists are now coming on in leaps and bounds," she said. "It's a great feeling to watch a child who was scared of water go on to swim with their face under water."

How to make a go of it

Financial advisor Stuart Matheson shares his top tips:* Have a solid business plan in place and allow for start-up costs.

* Allow a cushion for the time it takes for the income to come in - don't assume that because you've made a sale the money will come straight away.

* Don't get caught out if you've got a cyclical business - allow for seasonal dips.

* Remember the old adage of turnover is vanity, profit is sanity'. There's no use bringing in £10,000 a month if it costs £11,000 to do so.

* Put money aside for tax and national insurance.

* Get a good financial advisor and they will generally pay for themselves.

* Consider insurance for if you or a partner die or suffer long-term illness and speak to your family about the implications.

* Think the four Fs - founder (yourself), friends, family and foolhardy (anyone else who will support you). Get as much support as you can and speak to different banks about loans or re-mortgaging property. Organisations such as Business Link may be able to provide grants.

* Enjoy it! 94 per cent of women that have set up their own business say it either met or exceeded their expectations.