What does it take to start your own business? How, when and where do you start? What are the risks that you should consider and highlight upon opening a business? Choosing the path of starting your own midwifery practice is truly a leap of faith. It takes a lot of courage, determination, patience, and even physical and emotional strength. Keep in mind that the road to achieve your goals will not be easy so be sure that you are fully equipped and capacitated when you decide to start the journey to your dreams of becoming your own boss.
Indeed, the first step is always the hardest. So what is the first step in starting your own midwifery practice? Hmm, is it planning? Definitely yes! Without a plan, it is hard to get funding, be successful, and grow your practice to the ultimate potential it can be. Your funding source is write important. Without money, buying supplies and hiring staff is impossible. Once you have a solid business plan written, finding funding is much easier than you think to get the doors open. Most midwives think the start up costs has to be hard earned cash they have worked for. That is one option, but not the best use of resources available to you. We will go over different ways to get funding to start your own midwifery practice.
Personal savings. Of course you will not even think starting your own midwifery practice if you don’t have your own personal savings to begin with. This is like a fire starter that ignites your burning passion in midwifery. This gives you enough courage that strengthens your decision to start your midwifery practice. Having a personal savings is very important so be sure you have enough of it. You will surely look for other financial options but your personal savings will be your source of security. However, before you make a big withdrawal, secure yourself, set aside some savings and make sure it’s untouched. Don’t give it your all.
Friends and Families. Next to personal savings will be your friends and families. Your family will surely support you with your dreams especially when there are pretty good returns. You can either ask for a donation and have them write it off taxes when you are starting a non-profit organization or personal loans from them like you would get from a bank using your relationship as the collateral.
Bank loans/ Small business loans
If you prefer to have sole authority and don’t want any other people to have control over your practice, small business loan is your perfect choice. You are able to maintain complete ownership while worrying about monthly loan payments with interest for those start-up funds. Many banks or financial institutions are willing to provide you with your financial needs if you have a strong business plan. Be prepared for lots of questions about your business goals and what options for collateral you have for the loan. Small Business Administration has great resources and favorable loans for start up businesses. You can even get a free business mentor with their program! https://www.sba.gov/
Venture Capitals. This option is less utilized by midwives. It is normally offered in exchange for an ownership share and active role in the company. It is risky in a way that you will share part of ownership and control in your practice, and secured at the same time because you will have someone to back you up when things go wrong. If you want to go with venture capital, make sure that you 100% trust the people you share your practice with. With venture capital, invests capital in return for equity rather than debt. Although it takes higher risks but it exchanges potential higher returns, so it’s totally more of a win-win situation.
Crowdfunding. The word itself “crowd” means a large number of people. Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. It makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together, with the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists. It basically means asking for help of other people using your own connections. Crowdfunding has created the opportunity for entrepreneurs to raise hundreds of thousands or millions of dollars from anyone with money to invest. There are different crowdfunding websites to visit if you decided to use this type of funding.
With the increasing demand in midwifery around US, having your own midwifery practice is the best way to fulfill your dreams and keep a great balance between personal and professional life. Work on your terms and serve clients on your mission and values. Grow midwifery by supporting sustainable practices and mentorship to other midwives wanting to strong their own practices. The more we can support each other and find funding to create that strong team from the beginning, the better your chances of success get. Don’t hesitate to start your journey! There are people and resources out there willing to give a hand with funding if you know where to look.