The Rising Tide of Women Business Ownership with COO Lydia Ramirez

In this special National Women’s History Month episode of Experienced Voices™, I sit down with Lydia Ramirez, EVP and COO at Five Star Bank. With over 18 years of senior banking experience, Lydia offers insight into the progress of women business owners and women entrepreneurs contributing to and shaping the economy.

We discuss:

• Trends driving the growth of women-owned businesses.
• How to prepare your company to borrow and access capital.
• The vital roles of mentorship, networking, and women-only business groups.
• Strategic tips for developing high-impact business relationships.

About Lydia Ramirez: A leader in the Sacramento ecosystem, Lydia serves on the boards of the Sacramento Hispanic Chamber, Capital Black Chamber, and United Way. An MBA graduate and "Women Who Mean Business" honoree, she is a leading voice on community growth, the role of women business owners in the local community, and the fostering of inclusivity.

Transcript

Jeanne Gray: I am Jeanne Gray, publisher of American Entrepreneurship Today and host of the podcast series Experience Voices, where I talk with highly accomplished people who share the critical elements that led to their success.

Welcome to Experienced Voices, the podcast where we sit down with entrepreneurs, innovators, and investors who are shaping the future of entrepreneurship. I'm Jeanne Gray, your host, and in honor of National Women's History Month, we are dedicating our conversations to the women who are driving economic growth and breaking barriers in leadership.

Today's guest is Lydia Ramirez, executive Vice President and Chief operating Officer of Five Star Bank. Beyond her impressive C-Suite credentials, Lydia is actively engaged in the Sacramento business ecosystem. She serves on an extensive list of boards, including the Sacramento Hispanic Chamber of Commerce, the Capital Black Chamber of Commerce.

Valley Vision while also advising the next generation of leaders at the Sacramento State University College of Business. We begin our discussion of the role of women business owners and entrepreneurs in the economy, and touch on a range of subjects including networking, leadership, access to capital, and more listeners will gain a wealth of insight from a woman who is in a leadership position.

Who knows well, the journey of women who are building their careers and their businesses. Please join me in welcoming Lydia Ramirez to experience voices.

Welcome to Experienced Voices. Lydia. 

Lydia Ramirez: Thank you for having me, Jeanne. I appreciate it. 

Jeanne Gray: So as the COO of Five Star Bank and being in a leadership position, share some of the changes that you're seeing now that are beneficial, to women entrepreneurs. 

Lydia Ramirez: That's a great question, Jeanne. I think some of the things that we're seeing here, particularly in California, is that women entrepreneurs are really redefining what leadership looks like.

They're stepping into roles that have been long dominated by men. Building new bold ventures. I've seen a lot of leading with more vision, intentionality, strength. It feels more like , we women are really starting to shape what the future of business looks like. 

Jeanne Gray: Now. Are you seeing any trends?

Because I saw some of the statistics about California. It seems like there's a large portion of women who are contributing to the economy. 

Lydia Ramirez: I did some research on this one and it's pretty impressive and I can gladly say that as a women leader in California, California is leading the charge when it comes to women entrepreneurs.

I believe the number is around 40% of all businesses are women owned in California. And leading the nation, but significant growth nonetheless. Some other trends that we definitely have seen and have adopted. Just more of a diverse group of individuals, so not just a homogenous nature of kind of the growth, but you're seeing it across black women starting to lead and grow and a lot of Latina women leading and growing.

Same thing with the Asian communities as well and beyond. It's pretty cool. A lot of it is also being. Centered around kind of digital or online businesses, that level of focus professional services, more e-commerce and personal brands is kind of what we've been able to see and and recognize here in California in particular.

But I would say overall we're leading in job creation, revenue growth. So it's really pretty awesome to watch as it's, continuing to lead. Over, not just like the last year, but really over the last six to seven years, we started to really shape and move this kind of progression forward.

Jeanne Gray: Well Actually that's, absolutely great to hear. So let's touch upon some of the things that help women business owners. So what's been your experience with mentoring and how that moves their business models forward? 

Lydia Ramirez: Absolutely. So I can say Five Star Bank continues to set a pretty strong example when it means to invest in the communities in which we serve.

And a lot of that goes in the form of mentorship. So whether it is championing different connecting women together, listening to opportunities as they come up in the, business circles that I'm involved in the community that I'm involved in it's paramount to understand how me, as a banker in this community can help to shape and drive.

What the success of, particularly women business owners look like. And so being able to help drive and facilitate that is important. So, you know, If it's coffee in the morning, if it's a happy hour in the evening, if it's putting together a group of women that I think have some like-mindedness that can really drive something powerful going forward, I'm all about it.

Jeanne Gray: So are you seeing some common problems that a woman entrepreneur brings to a relationship where she's seeking out someone with much more experience? 

Lydia Ramirez: I wouldn't say problems, but I think sometimes there is the idea, but moving the idea into fruition. Comes with its own set of challenges.

So being able to have champions in the community, being able to have mentors in the community, relying on your local banker to help you facilitate some of those introductions, relying on some various chambers of commerce to help drive what comes next. A lot of it is trying to understand maybe.

Putting the foundation in place and then once that's in place, but really trying to grow it is its own set of challenges, right? So once you start it, how do you build it? And then how do you market it? And I think what we found specifically during COVID is that we are really good on. Social media.

And so being able to captivate that audience and what forced the whole world into this very digital space has been very beneficial for women. So I would say we are challenged to sometimes find the right footing to get started, but once we get started and once we have that level of connectivity, you really start to see these women business owners flourish.

Jeanne Gray: When you mentioned COVID, what came to my mind was adaptability. And so I don't know if it's your opinion, women tend to be more adaptable in a lot of different challenges through their lives. So maybe it applies to business, but let's touch on another component or factor that moves a woman along in the ecosystem.

And share a little bit about the importance of being a good networker. 

Lydia Ramirez: That's paramount. I would say sometimes we run into circles where it feels a little paralyzing because it's, there's a lot of faces that are unfamiliar and just trying to figure out how to put the best foot forward. So I always.

Tell individuals, specifically women as they're going into networking is have intentionality behind it. Don't just show up into a room. Understand who is going to be in the room. Seek out one familiar face just to that uneasiness and just, have that first couple bites or glass of wine or glass of lemonade, whatever, strikes your fancy.

But after that, you should have done some homework and identifying at least two to three people that you really wanna seek out just to say. Hi. Introduce yourself. Tell them a little bit about what you are doing, but why you sought them out. I wouldn't say you wanna go into a full sales pitch during a networking event, but you do wanna be able to say, it was a pleasure to meet you.

I would love to spend a little bit more time with you if you've got, some time in the next couple of weeks. To kind of really talk more about what I'm doing and how I think we can benefit from a mutual partnership. Something to that regard. Because I think if you have that mentality.

You will be able to just know that you've done your homework. You can feel a little bit more easy about working a room, and then the room becomes smaller as you continuously become part of these ecosystems where you're continuously joining or being a part of the networking. And it can't just be a one.

Focused network space. So it can't just only be chambers. You gotta be able to go out and about into different spaces. As women, we are oftentimes also moms. Don't be afraid to talk about yourself on the soccer field or the baseball field because a lot of times we get a lot of stuff done while we're multitasking and watching little Johnny or little Angie.

fields, right? So I think it's just being creative, to your point, being adaptable to understanding how one continues to be successful, right? So you're a mom, you're an entrepreneur. Those titles never change. So use them simultaneously. 

Jeanne Gray: you touched on a few points that I personally had to learn when I was a first time entrepreneur, which was when I would go into a room is, was to have a goal to prepared, and also to learn that I should have a broader outreach than my very first entree into business networking.

And I learned by watching other people. work a room I called them the extroverts. So that was something I definitely had to learn. So let's talk a little bit about women only business groups. I assume you would advocate for them to be in groups but why? Or do they also need to be in other groups as well?

Lydia Ramirez: So I would absolutely advocate for them because I feel. As if many times the ability to work those rooms first comes a little bit easier it feels less intimidating. Most women that are in a women only group are also in some form of entrepreneurship trying to start or are partners of and wanting to help drive their businesses.

So that's always. What I would say your first lifeline, but it cannot be your only lifeline. You have to be able to diversify yourself with other groups that are going to be intentional about growing your business. And so that's where, to your point, having done homework makes it easier for whether you're an extrovert or an introvert, but it definitely makes it a lot easier if you're an introvert, is to do your homework and be very intentional about.

Why you're choosing to be in any group setting because you're taking some times, some family time. 'cause a lot of these groups are be, are not necessarily meeting during the eight to five hours. They're many times in the evenings. And so you wanna make sure that, you don't need to be at the event for the entirety of the event.

But when you are there, I would say 45 minutes is a strong amount of time. You can go in work a room, have. Two to three quality conversations and get back home. 

Jeanne Gray: Yeah, it has a lot to do with showing up, right? If 

Lydia Ramirez: yes, 

Jeanne Gray: if 

Lydia Ramirez: being consistent 

Jeanne Gray: right. It begins with showing up. And if you are an introvert, which I am, that's something that you would struggle to do.

And then once you do it, it's amazing how it feeds on itself. But getting through those first, through networking events for an introvert is very hard. We touched upon a little bit of the work life balance that comes up in these women's groups that they're able to share and actually just simply voice that they are really dealing with two masters, which is their career, and also their commitment to their family.

Lydia Ramirez: Yes. So I'm a strong believer that. Just because I am a woman and a mother does not mean that I cannot have success in the industry I choose. And that's very true for an entrepreneur as well. So like I kind of said earlier, we don't just wear one hat at a time. We wear all hats every single time of every single day.

for me, the idea of a work-life balance is a little bit harder to contemplate in my head because when I'm thinking about work-life balance, I am suggesting that at one point in time, something is more important than the other. And so for me, it's more about work-life integration. So when I'm out at the baseball field at my son's game, I might be on a phone call while I'm watching my son's, at the plate and doing what he needs to do. But at the same time, I'm always continuously working. And so I think that level of integration creates an ease with what we do and how we go about doing it. And it feels less guilty about, oh I'm, not doing enough for my business, or I'm not doing enough for my industry.

Or I'm not doing enough for my family. But when you're really good at starting to mesh the passions the level of work being done simultaneously, you find yourself to be more successful overall. And so for me, it's more about integrating the two simultaneously versus putting on one hat and then wearing another hat at a different time in a different space.

The other thing that I always say is sometimes I'll take. A couple hours on a Sunday to make sure that I can unapologetically be free from my family on a Tuesday afternoon. Right. So it's about just being able to shift focus when you need to. for me, I will always be a mom first.

I have two, amazing young adult men that are my boys. And I am a mom first. However, I always show up as, Lydia the community partner, Lydia, the banker always at the same time too. 

Jeanne Gray: I think it's important since you have reached the position of COO, that you've shared that mindset.

That you are able to get to a position that you are in, but also have figured out a way to handle it, the stress of both, parts of your life. Now you're in the room as far as the networking, but relationships are really important in business and whether it's female to female or female to male.

Are there a couple tips that you could offer someone who is. Identified whether it's a potential client or vendor or how do you go about making a stronger relationship? 

Lydia Ramirez: So, As a person of leadership for my company, there's three. Real key tips that I always tell myself is I don't have to be the smartest person in the room or even in my organization, but I have to be willing to outwork anyone.

And so if I'm a business owner, I'm, if I'm an entrepreneur, I need to be willing to outwork everyone in my organization to ensure that my. Business is successful and that's how I feel about my own particular position. I need to be willing to outwork anyone on my team to show that I am one capable, willing, and wanting the success of the organization.

So that's one. Two, we talked about it earlier, networking. Networking is key to success. Working a room with intention is a must. You can't just go into a room and think you're gonna wing it and become successful. The other thing about networking we talked about it, is the consistency. It's not just about showing up one time and hoping that you're going to walk away with three amazing sales leads.

It's about being there consistently. And if you pick a day and a time that works for with you every single week or every other week, then just be consistent about what it is that you're doing. And the last thing I would say is asking for help. You need to be able to work smarter, not harder. So reinventing the wheel does not make any sense, especially when there's so many ways models out there that have been.

Shown to be successful. Not all are successful or created equal, but there are versions that are going to work for one particular person versus another. So test them out. Figure 'em out and find the one that really works for you. But asking for that help is critical. 

Jeanne Gray: I think the one point agree with all of the points you made, but when you were talking about consistency, the one failing that I have is the follow up.

Is that we then, after we've gone to an event, or even after we've met with a vendor or a customer, we let too long a period of time go by before we reach out again. And I just recently experienced that where I sent out some emails to people and I got these happy faces back and I was like, oh, they were thinking of me.

I was the one who was too busy. So I think those are really great points. So let's touch a little bit about the bank and a woman business owner comes in and, a bank has a broad range of services. It starts with, maybe the checking account and it can go all the way up to a lending relationship or a loan relationship with them.

So share a little bit about how the bank views not just a woman, but any client. When they walk in the door and say, I'm a business owner. And how the services can progress. 

Lydia Ramirez: Absolutely. So the one thing about Five Star Bank is we are a commercial community bank, so we specialize in small business needs all the way to the most complex version of.

Businesses out there, we do everything in between. So it's really about one, establishing and creating the relationship. Right. So we also have a multitude of business development officers that might fit the need or the mold for any particular person or woman. We've got what we love to lead with was we do have, quite a few women business owners that are being led by some of our outstanding women business development officers who are doing great work in our community and really driving an ecosystem to create that familiarity of what Five Star Bank is, what we do and how we go about doing it. A lot of it yes, is driven through.

The basics of just banking products, to your point, the checking, the savings and the progression thereafter. But we maintain those relationships as they grow. So as each business goes through its infancy stage to its, teenage years all the way to maturity and moving into. Selling the business or passing it down generationally, we are involved every single step of the way.

And so for us having those relationships, it's critical. In fact, it's what led to many successful. Businesses getting through COVID because they had the relationship with Five Star Bank. We were here for our businesses, and we grew tremendously because people understood people being our business owners understood the importance of having a relationship with their banker and understanding that a banker is not just about the dollars coming in and out, but it also can be a person that can be a subject matter expert about.

Some other parts of the business that they may not have thought about, like marketing or e-commerce or how to generate additional business thinking outside of the box because we also have individuals that we could connect them to be able to continue to grow their business. So driving those ecosystems is critically important for Five Star Bank.

And for our customers, 

Jeanne Gray: For sure COVID put stress on the small business community that they had not seen in decades. So I think you really captured the importance of community. Now, I noted in your background that you're on different boards, and so share a little bit about how being on a, a board as a executive at a bank is part of the whole aspect of understanding the ecosystem.

Lydia Ramirez: Absolutely. So one of the things that I can say is Five Star Bank loves to mirror the communities in which we serve. And so by doing that, we participate in the communities that we serve, and it's about building a collective strong economic. Region that is being very thoughtful and intentional about how we go about being successful, and in order for us to be part of that or have a seat at the table or have a voice as to what is continuing to shape our regions in which we serve.

We show up on boards. And so for me personally, I've got a couple that I am very passionate about. Some of them are economically driven, some of 'em are more social services through food insecurity. Some of them are arts driven. And just really trying to add value. To the overall region by making sure that I can contribute my talents to some of these nonprofit boards or political action committees to help shape maybe the new civic leaders that are coming up through the different channels and networking with all of those individuals as well.

Because a lot of the policies that are being shaped here locally are sometimes what really drives. The local region. So ensuring that we are helping to cultivate those next generation leaders is critically important, as well as helping to cultivate the success of the nonprofits around us to be able to drive what comes next for our under-resourced, vulnerable population, so that they can all ideally achieve a parity with everyone in the community.

Jeanne Gray: So having access to capital is probably identified as one of the top components or factors for business success and also an ecosystem success. So share a little bit about how. Women have, struggled in the past to have access to capital, but that has changed quite a bit, but still needs to change more as people say on the venture capital side.

So share a little bit about the importance of access to capital. 

Lydia Ramirez: I think the idea of access to capital really starts with one of those tips I shared earlier, asking for help and understanding what it takes to. Create that level of capital, starting with the credit card, starting with understanding your balance sheet, understanding your profit and loss, understanding how strategic decisions can help to influence whether you Going to get additional capital, especially if you're trying to grow your business, right? There's a, there's an idea of I need this much money in order to achieve this level of growth, but do you have the contracts in place yet? Right? So understanding how capital is divvied out is a critical, important piece of it.

And so that's why many of us that. are in leadership here at Five Star Bank serve on many panels to educate not just our female entrepreneurs, but our entire regions in which we serve to really help drive what comes next. Because we want nothing more than to take in the deposit dollars that are coming into us and turn around and lend them out to our local.

Economies, right? So that's why we are big champions in the communities in which we serve, because we want all of those dollars coming in, and we are going right back out into the community to really continue to push what comes next and really help the local economy thrive. But a lot of it comes down to education.

That's the first thing, is understanding what it takes. And then who's out there that can help get some of these. Opportunities out there, right? So not only do you have the small business administration learning, understanding what that is about, understanding who are the counselors that can help through an SBA process understanding how your local bank participates through those processes.

Just really it's truly an educational process, and I think once the education is established and you've established a great working relationship with your banker, you will start to see the progression of what can happen with your business as you go through those different stages of the business lifecycle.

Jeanne Gray: I think you touched on. A number of key factors that a owner has to take into consideration when they're starting to think they need outside financial support. think the other one that came to mind as you were speaking was I have found they often fall behind in their financial statements and share a

Little bit about. How the bank can walk through someone for the first time they walk in the door with an expectation they need $50,000 or a hundred thousand dollars. Share a little bit about the importance of the financial statement. 

Lydia Ramirez: Absolutely. So ensuring that. Your business can tell its story is critically important, and that story is being told through your financials.

So it can't be the piece that is done when I have to do my taxes, and then I'll figure it all out and I do it once a year and I'm touching on it once a year or once a quarter, but an active conversation that is happening every month with you. With your business manager, with your CPA, with your tax person, with whoever you feel is going to be critical to you in managing that financial story because it's that story that helps to make the business owner, the woman entrepreneur, lendable.

And so the more you can understand how we look at that story is how we, being the bankers or the lenders it's more important that you can share your story. And is the story that you're telling us the same thing that's being mirrored on the story that we're seeing through the financials, and we will help to share what we see on those financials to kind of maybe fill in some gaps or identify some opportunities where we can help to mutually beneficially grow the relationship between the bank and the entrepreneur.

But a lot of it is driven through ensuring that those. Financial statements are always kept up to date. And that you're having those critical conversations with those critical partners in order for you to be successful and lendable and not just ask for a, the starting capital, but, continuous capital as you continue to grow in revenue in size.

Jeanne Gray: Going into the bank and getting that feedback, I think is really important because again, through experience, you spend too much time in the building in your office, and you need to go out and hear someone else's evaluation of where your financial standing is. And if you go there sooner, then they get you on the path a lot quicker.

And that's critical. 'cause I totally agree with you that I'm financially trained is the numbers have to support the story and a banker is a really good person to get them to see the connection.

So, Yeah. And I would also add the small business counselors that are out there as well. If for some reason maybe a banking relationship hasn't been established quite yet.

Lydia Ramirez: Those individuals usually lending through some version of, a small business administration loan or an SBA loan can also help their fantastic counselors to help before you go down the road of, you know, a hundred grand in credit card debt. Really having that conversation to understand how you are going to fund.

Your startup is very important and I would highly advise against just doing it on a credit card without having a conversation. I'm not saying don't use a credit card. 'cause I think credit cards are critically important for the growth and vitality of a lot of our small businesses. But using it.

Judiciously and prudently and with good guidance helps you to become stronger so that your story isn't having to work out of something in order to get into something else. So those are some things that I would also suggest is, whether it's your local banker, 'cause you do have that relationship or a community counselor that is working through some version of a CDC type where they have a connection to potentially that SBA they can really help a lot too. And most of the time our local chambers of commerce have some version of small business counseling as well. So even if it's just an idea, talk to somebody. 

Jeanne Gray: Well, Lydia, we have covered so much in such a short period of time, and I do appreciate you coming on as a guest.

As we wrap up there are so many things converging that are working positively for women. So how do you see in the future. Where the glass ceiling is as hard for women that in five or 10 years will we see more women in leadership positions? 

Lydia Ramirez: Absolutely. I'm a firm believer in representation matters, so the more we see ourselves out there, the more we see other successful business owners that are women, the more that we see successful business leaders in any industry, frankly.

We will be positioned to take on more of those leadership roles. I think we're starting to see that shift already, right? We're starting to see more women in what has been long held by men where we're starting to see more and more women in construction. We're starting to see more women in executive leadership in nonprofits We're starting to see more women in banking at the C level. I think we've got like. 7% of the C-suite are women. Now 7% isn't quite as big as we'd like it to be, but we need to get more where we are. And that starts with developing our next generation for what comes next. And that's not just true to banking.

That's probably true across a multitude of, industries. But I think, again, if you can see yourself in that role, because there's somebody in that role that looks like you the easier it becomes to. Challenge, what was the status quo? And I think that it will take the help of our male counterparts to continue to help us open those doors and for those women that are in these seats today at the higher echelons of any industry or, business or, organization that they themselves continue to open the doors, the windows, the garages for anyone else that is trying to come up behind them or alongside them to really help challenge what it looks like. And, And I firm believe that in , five to 10 years will continue to shape it. I don't think it'll be at rapid speed, but slow and steady wins the race.

Jeanne Gray: So as we wrap up, I have one more point on that. So for a young person, whether it's a male or a female, but probably more so for young women share a little bit about having the skill to be assertive and to, it used to be should we go in and ask for a raise? I think the narrative has moved past that, but it's still a question for a young person of what is assertiveness versus aggressiveness in moving their, business professional career forward.

Lydia Ramirez: Here's what I can say to that. Our world is now data driven, so if you can support your value with the data. Then you should know your worth at all times, and by being able to support your value through data, the conversation is never aggressive. It's more asserting your value what you bring to the table and how you can help to drive the return on investment for that organization.

And it is all driven through data. It's not subjective. It's not. I think I wish, I hope, I feel, but this is what I have. Brought to the table, this is what I know I will be bringing to the table. And this is the help that I'm hoping that we can do together and really being assertive about how you're going to go about doing it.

And again, it's not just, something that you thought about last minute, but something that you've intentionally been driving. It's a strategic focus, right? And so that's the one thing that I wish I would've been a little bit more when I was younger. And then also just having the confidence to have these conversations.

Sometimes they're very uncomfortable and making sure that understanding your own worth, your value being, okay with taking risks. 'cause the only thing that can happen is you get a no. And that's okay. It just means that you learn from that opportunity and the next time you'll be even more prepared.

Jeanne Gray: Actually, I thought that was a great point you made about data. 'cause we're in a data-driven economy and that may be a factor for. How women can change their story when presenting it, whether to a bank or to a venture capital firm or an angel that awesome data speaks for itself. Look, I've totally enjoyed speaking with you Lydia sharing your experience and the progress that women have been making in.

contributing more to the economy. Again, thank you for being a guest on experienced voices. 

Lydia Ramirez: Thank you, Jeanne, I appreciate it. And it's been a pleasure of mine as well. 

Jeanne Gray: You have been listening to the podcast series, experienced Voices. To hear more and subscribe, visit american entrepreneurship.com/podcast. Where you will also find a form for listener feedback.