Wachovia Women and Money Interview with Martha Hayes

As an extension of our commitment to educating women, Wachovia is featuring interviews with top female executives who share their insights and perspectives on issues surrounding Women and Money.

This featured executive is Martha Hayes, Senior Vice President and Chief Operating Officer of Wachovia's Business Credit Solutions division.

Wachovia: How did you get involved in small business banking?
Hayes: About eight years ago, Wachovia realized that we had a gap in terms of how we served the small business segment. At the time I had experience in both the consumer and commercial segments and was given the opportunity to start designing a strategy for the small business segment. This was very exciting because we really started to recognize the impact that small businesses have on the economy and the growth potential within this segment.

To gain more insight, we spent many hours talking to small business owners and researching their needs. We discovered two key factors that are critical to their small business: that time and the ability to get quick credit decisions were critical to small businesses. Using this research, I led the team that created and implemented our Small Business Banking Division, which underwrites credit requests from $25,000 up to $1.5 million for companies with annual sales up to $10 million. I continue to manage this group, now called Business Credit Solutions, which is a part of Wachovia's comprehensive strategy to meet the credit, cash management and investment needs of our small business customers.

Wachovia: Have you noticed any specific trends over the past several years relating to women-owned small business?
Hayes: I think the biggest trend is that more and more women are choosing to leave corporate America in order to start their own business. Today, there are over 9 million woman-owned businesses in the United States - that's 38% of all firms. Woman like the challenge, flexibility, independence and control that owning their own business affords them.

Wachovia: What steps should women take when looking for capital to start or grow their small businesses?
Hayes: The most important step for any small business owner, including a woman, is to make sure you have a sound business plan that you are personally willing to invest in. This goes a long way in terms of getting others to invest in your idea as well. Also, make sure you share that plan with your financial advisor, such as your Wachovia representative. They can help you determine what options are available to you and what will work best given your objectives.

If you are looking for start up money, consider these options - asking relatives or friends to invest, taking on a partner who is willing to contribute, or contacting a venture capital firm who can identify potential investors for your company. Another option is applying for a Small Business Administration (SBA) loan through an approved lender, such as Wachovia. The SBA Web site, sbaonline.sba.gov, also offers a wealth of information on starting a business, including finding the funds to get started.

If you are an established company looking to grow, commercial banks make an excellent source of funds. Wachovia offers traditional term loans and lines of credit, as well as SBA backed loans.

Whether you are approaching a potential investor or lender, it is important to be prepared. Make sure you can answer questions like - how will the money be used, how will it be repaid, are you credit worthy (make sure you've established both a personal and business credit history), do you have the experience and background needed for your type of business, what is the long-term viability of the company, etc.

Wachovia: In addition to looking for credit/capital, what else should woman business owners be talking to their bank about?
Hayes: Commercial banks have changed over the years and the depth of our product offerings has become quite extensive. Wachovia has products that can help woman business owners save time, manage cash flow better and even help diversify your product. Not to mention, personal banking products and services for you and your employees. Unfortunately, many woman business owners don't realize this and only talk to their bank about credit or capital for their businesses. Again, I would encourage woman business owners to share their business plan with their banker and make them aware of plans being considered for the future. Wachovia has products that meet the needs of the many cycles of a business. Talk to your banker when you are considering things like selling your product over the Internet, expanding to international markets, providing benefits such as a 401(k) for your employees or even selling your business. This will allow your banker to determine the best solutions for you which means you get the most benefit out of the products and services that your bank can offer.

Wachovia: Do you have any advice for women who want more information about running a small business?
Hayes: My advice to any woman business owner is to know what you want and then go for it. Remember that you're the expert on your business idea but you don't have to be the expert on everything else. Don't be afraid to ask questions of your banker, accountant, lawyer or any other advisor. The Internet is also a great resource available to woman business owners. Just take the small business section of wachovia.com - there is information regarding marketing, human resources, finance, technology and much more. The National Foundation for Women Business Owners (NFWBO) is also a great source of information (nfwbo.org). And lastly, I think networking among friends and business peers is a great way to gather advice, find out about best practices and even obtain referrals to trusted advisors.

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MARTHA HAYES