Soaring Past $1 Million: Achieving Growth in Female-ledEnterprises
Empowering Women-Owned Businesses to Scale Beyond $1 Million
In the bustling city of Chicago, a collaboration between Allies for Community Business (A4CB) and HIRE360 is making waves in the construction industry, helping businesses like Silver Line Construction, owned by Forest Brown, scale beyond the $1 million revenue barrier.
Forest Brown, president and CEO of Silver Line Construction, specializes in affordable residential remodeling and renovations, as well as light commercial work. Initially, Brown self-funded private home renovation projects and learned the ropes alone. However, earning her M/WBE certification with the City of Chicago didn't immediately translate into contracts.
This is where the partnership between A4CB and HIRE360 comes into play. Recognizing the unique needs of the construction industry, this collaboration aims to help firms learn how to bid competitively, secure bonding, and navigate union requirements while providing the necessary capital for larger jobs.
For Brown, this partnership was a game-changer. When she needed working capital quickly to secure city government contracts, including work with the Chicago Housing Authority, HIRE360 connected her with A4CB, providing her with a loan in about seven days.
Flexible capital and high-touch advisory services are key components of this partnership. Flexible capital, such as microloans, recoverable grants, low-interest debt, and program-related investments, provides women entrepreneurs with accessible funding options that accommodate their cash flow realities and reduce reliance on traditional loans. This kind of capital helps fill critical funding gaps, like initiatives that provide millions in microloans specifically targeting underserved women entrepreneurs.
High-touch advisory services complement flexible capital by offering tailored support in essential areas such as business planning, financial projections, marketing, and legal assistance. These services help women entrepreneurs build the capacity and strategic understanding they need to manage growth effectively and sustain profitability beyond initial revenue milestones.
Together, these services address the capital gap for underserved women entrepreneurs, reduce systemic biases and barriers in traditional lending, build business capacity, and promote sustainable scaling. They create a supportive ecosystem empowering women-owned small businesses to overcome barriers and achieve sustainable expansion.
The Open for Business Growth Fund, an initiative that provides flexible capital and high-touch advisory services to small businesses with between $250,000 and $5 million in annual revenue, reflects a shift in how large financial institutions think about small business support. Focusing on in-depth advisory services to address the complex, individualized challenges growth-stage businesses face, such as capital planning, hiring, and market expansion, the Growth Fund is fostering job retention and wealth creation in communities that historically face disinvestment.
Brown emphasizes the need for policy and procurement systems to evolve, such as net 30 payments being paid within the specified time. She also stresses the importance of capital, mentorship, and business development opportunities. HIRE360 is helping Brown explore new opportunities in clean energy construction, such as using LED lighting, smart thermostats, and energy-efficient appliances.
In conclusion, the collaboration between A4CB and HIRE360, and initiatives like the Open for Business Growth Fund, are paving the way for women-owned businesses to scale beyond the $1 million revenue barrier. By providing flexible capital and high-touch advisory services, these organisations are equipping entrepreneurs with the means and know-how to overcome the challenges they face and achieve sustainable expansion.
Women entrepreneurs in the health-and-wellness sector, such as those offering women's health services, could benefit greatly from these programs. For instance, a women-led business specializing in holistic health solutions could scale past the $1 million revenue milestone with the help of advisory services in marketing and business planning.
The collaboration between A4CB and HIRE360's success in the construction industry could inspire similar breakthroughs in science-based industries. A women-owned business focused on biotechnology research, for example, might secure capital and bidding opportunities, allowing it to break the $1 million revenue barrier and contribute significantly to scientific advancements.
Moreover, million-dollar women entrepreneurs in the finance sector might leverage these programs to scale their businesses, offering innovative financial solutions that cater to the unique needs of small businesses. Such businesses could also focus on initiatives that promote financial literacy for underserved communities, fostering economic growth and stability.
