Why Moms are Natural Entrepreneurs
We work with a lot of entrepreneurs and we see some exciting trends. Moms and those who run a household with children seem to have an advantage when it comes to small business. At First Steps Financial we love to hire moms who have run a household, run the PTA/PTO or been a volunteer at school or someplace else. Why? They know how to put out fires- and in what order! They also seem to understand our small business owners, anticipate their needs and can empathize with them. They possess an incredible set of skills that are learned from experiences while others that appear innate. These skills are not limited to women, but seem to be someone who is taking the greater share of responsibility with kids and the home. While we love to hire these moms- they also make amazing business owners.
- Multitasking Superpowers: Moms possess exceptional multitasking abilities that make them ideal small business owners. Juggling numerous responsibilities in their personal lives, such as managing household tasks, caring for children, and supporting their families, prepares them to handle the diverse demands of running a business. Their innate ability to prioritize, organize, and efficiently manage their time enables them to excel in handling multiple aspects of their small business simultaneously.
- Natural Problem Solvers: Motherhood instills in women or caretakers a remarkable problem-solving mindset. From resolving conflicts between children to finding creative solutions for everyday challenges, moms develop a keen sense of resourcefulness and adaptability. These problem-solving skills translate seamlessly into the entrepreneurial world, where small business owners constantly encounter obstacles and need to think on their feet. Moms possess the resilience and determination to overcome challenges, making them adept at navigating the uncertainties and complexities of running a successful small business.
- Empathy and Customer Focus: Mothers are known for their nurturing and empathetic nature. They have a deep understanding of the needs, concerns, and desires of their children, and this empathetic mindset extends to their interactions with customers. Small businesses thrive on building strong relationships with clients, and moms excel at providing personalized care and attention to their customers. They have a unique ability to listen, empathize, and meet the specific needs of their clientele, creating a customer-centric environment that fosters loyalty and trust.
Moms possess a range of qualities that make them outstanding small business owners. Their exceptional multitasking abilities, problem-solving mindset, and natural empathy contribute to their success in managing and growing their businesses. By leveraging these inherent strengths, moms create a nurturing and customer-focused environment that sets them apart as exemplary entrepreneurs.
Our Latest Insight
For project-based businesses, a healthy income statement can be dangerously deceiving. You might land a landmark contract and boast a record-breaking backlog, yet still find yourself scrambling to cover payroll by Friday. Why? Because in project-driven models, profitability and cash in the bank rarely move in sync. Between delayed milestone payments, scope creep, upfront vendor costs, and unpredictable client approval cycles, managing cash flow is a constant balancing act. A reliable cash flow forecast isn't just a nice-to-have financial report, it is your early warning system. This comprehensive guide walks through the frameworks, metrics, and best practices required to master cash flow forecasting for project-based operations.
Selecting an accounting method is one of the most critical structural decisions a construction business will make. While cash accounting offers simplicity and direct visibility into liquidity, accrual accounting provides a far more accurate reflection of long-term operational health by matching revenues directly with the expenses incurred to earn them. Given the prevalence of progress billings, subcontractor payables, and inventory costs in construction, transitioning from cash to accrual (or managing a hybrid model) often becomes mandatory as revenue grows. This guide breaks down the key mechanics of cash vs. accrual accounting for contractors, IRS eligibility rules, and how each method impacts your financial reporting and bottom line. Understanding Cash vs Accrual Accounting At its core, the difference between cash and accrual accounting comes down to timing : specifically, when your business officially recognizes income and expenses on its financial statements. Cash Basis Accounting: Driven by Money Flow Under cash basis accounting , financial transactions are recorded only when actual money changes hands: Revenue is recognized when a client's payment lands in your bank account. Expenses are recognized when cash leaves your account to pay a supplier, subcontractor, or bill. Example: You complete a framing job in October and send a $15,000 invoice. The client pays you in December. Under cash accounting, that $15,000 counts as December revenue—it does not exist on your income statement in October or November. For small trade contractors or solo operators, cash accounting is attractive because of its simplicity. It gives a direct, real-time picture of how much spendable cash is in your bank account today. Accrual Basis Accounting: Driven by Activity & Earnings Under accrual basis accounting , transactions are recorded when they are earned or incurred , regardless of when money actually moves. This method follows the matching principle , pairing project revenues with the exact expenses required to generate them. Revenue is recognized as soon as you complete work or issue an invoice (Accounts Receivable). Expenses are recognized as soon as you receive a subcontractor bill or order materials (Accounts Payable). Example: Using the same framing job above, the $15,000 is recognized as October revenue because that is when the work was performed and billed, even though the cash won't arrive until December. While accrual accounting requires closer tracking of receivables and payables, it delivers a much clearer picture of your company's true profitability and operational health.
There is a frustrating stage of growth when the business makes more money and becomes harder to run. You expected growth to create leverage. Instead, your calendar is fuller and decisions take longer. Projects compete for the same people. Expenses become harder to explain. Accounting needs more information from Operations. Operations needs more information from Accounting. And the accounting systems that carried you to $2 million were not built for $15 million. Nothing necessarily looks broken. That is what makes this stage so deceptive. The processes that got you here may still work. Your people may still be good. Your customers may still be buying. What changed is the weight your existing structure is being asked to carry. At $2 million, you can still personally compensate for the gaps. Somewhere on the road to $5 million, $10 million, or $15 million, that stops being possible. The business did not suddenly become dysfunctional. It outgrew its dependence on informal coordination. Part 5 of a 5-part series on the COO-Accounting relationship
