How Women-Owned Businesses Can Set Themselves Apart From the Competition By Taking This One Simple Step
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Running a business is a huge undertaking, especially if you are a woman entrepreneur. Despite progress in gender equality among most sectors of society, women-owned businesses still face unique challenges in the marketplace.
A 2023 Bank of America survey found that 31{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} of women business owners said they have had difficulty accessing capital, while 31{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} felt they do not have the proper information or qualifications to feel confident applying for capital.
Another persistent challenge for women-owned businesses is the ability to earn consumer trust. Even though about 40{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} of all small businesses in the United States are owned by women, 46{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} reported experiencing gender bias while operating their businesses.
One way to overcome these obstacles is through customer-facing business certifications. These independent, third-party evaluations can boost your credibility with potential lenders and customers alike.
Just like seeing an A+ health rating in a restaurant’s window can encourage first-time customers to try a new restaurant or help retain regular customers, earning third-party certifications can help women-owned businesses build customer and lender confidence in their offerings.
Today’s certifications cover various areas, including environmental impacts, ethical business practices and supplier diversity. These certifications can help define your place, values and ethics, as well as those of other businesses in the market. And while some certifications are harder than others to obtain, doing the required work can pay off in the long term with many benefits that can boost your business’ bottom line.
Enhancing your brand story
Business certifications help to share and tell the store of your company’s values. They show customers what you stand for and what matters most to your business. When customers see your business has a certification badge, they understand that it meets certain standards and requirements. This helps to enhance your brand story.
Building trust through transparency
Customers will appreciate the transparency and commitment to the standards that certifications require and the efforts made by your business to meet them. By undergoing the certification process, your business is committed to the respective certification requirements and goals. This builds consumer confidence, as they know they are supporting a business that adheres to high standards.
Joining a community of like-minded individuals
Business certifications can give business owners access to a network of other businesses that share similar values. By joining a certified network, you gain access to events, forums and partnerships that can help your business grow and thrive with like-minded individuals. This community can be an invaluable resource for support, collaboration, mentorship, new opportunities and growth.
Boosting business development
Businesses with the same certification are more likely to do business with you because they share the same values and missions. This can lead to new partnership and collaboration opportunities, and as a result it can increase a business’s customer base.
Raising visibility, awareness and association
Having business certifications can make your business more attractive to companies and customers looking for partners or suppliers with similar values. Business certifications are a great way to stand out in a marketplace flooded with many consumer options. It also doesn’t hurt to have your business associated with other well-respected certified companies.
When choosing the best certification for your business, it may be helpful to keep in mind Simon Sinek’s Golden Circle model, which consists of three concentric circles: why, how, and what.
He emphasizes the importance of starting with “why” when communicating a brand’s value proposition. According to Sinek, the “Why“ represents the core purpose, beliefs and values of an organization. It’s the emotional driver behind what they do. The “How” describes the unique approach or process that sets the organization apart. And, the “What” refers to the tangible products or services offered by the organization.
People are inspired by shared purpose, causes and beliefs. Customers don’t just buy products or services; they buy into the underlying purpose and values. By obtaining certifications in keeping with your own vision and values, you are effectively communicating your “why” to your customers, attracting loyal brand evangelists who believe in your mission.
Related: What if Women Entrepreneurs Actually Got What They Needed for Their Businesses?
Top certifications to consider obtaining
Women Owned Certification
This certification verifies that a business is at least 51{b35c98fb0b5373898aeb6e2d0db4f287402c3d8e7e09edb32fb78fc4e77f672b} owned, controlled and operated by a woman or women. It helps customers and other businesses support women-owned businesses. For women-owned businesses, this network can be empowering as it offers a networking opportunity to connect with other women, share experiences and support each other in navigating the challenges they face.
Certified B Corporation
Certified B Corporations meet high standards of verified performance, accountability, and transparency regarding factors such as employee benefits and charitable giving, supply chain practices and input materials. This certification is ideal for businesses committed to positively impacting society and the environment. Having a certification like B Corporation shows your audience that your business is not just about making a profit but also cares about making a positive impact on the world.
Climate Neutral Certification
The Climate Neutral Certification demonstrates that sustainability is part of your brand’s core values. This certification proves your commitment to reducing, and even eliminating, carbon greenhouse gas emissions, and mitigating climate change. This is a popular and well-recognized certification that can attract eco-conscious customers to your businesses.
Fair Trade Certification
This certification is for businesses that are committed to ethical sourcing, ensuring products meet rigorous social, environmental and economic standards. It’s a powerful way to demonstrate your commitment to fair trade practices, especially to female and minority workers.
Getting business certifications is not just about adding a badge to your business; it is about enhancing your brand story, building consumer trust, joining a supportive community, boosting business development and increasing visibility. For women-owned businesses, these certifications can help them overcome the unique challenges and barriers they face in their business journey.
