In a recent article in the Wall Street Journal entitled, “Why Are Women-Owned Firms Smaller Than Men-Owned Ones,” Sharon G. Hadary, an adjunct professor at Maryland University College develops excellent points that every woman business owner should pay attention to.
First of all she talks about the importance of goal-setting. “Research shows that the only statistically significant predictor of business growth is not the industry, size of business or length of time in business. It is the entrepreneur’s goal for growth.” If you don’t have a goal that includes growing your company, you’re not going to grow your company. It’s that simple.
Maybe you’ve decided that what you have is enough. That’s okay. But what I see with many entrepreneurial women is the need to get more business. To escape the cycle of wanting/needing business, working like crazy when you get it without spending time stratigizing or marketing your business, you must be willing to grow your business. That growth begins with a goal.
Hadley also makes the point that planning for growth must be built in from the very beginning of your business. When you need a loan from the bank, you need to have the records to support the request. You also need to have a relationship with a banker.
I recommend that you take the following steps if you want to build a business that grows.
- Get advisors. Get out of your own head and get support–not only from women advisors, but also from men. Talk with people who make you uncomfortable and talk with people who make you stretch.
- Make and complete goals regularly. Get someone like a business coach to hold you accountable if you need to.
- Know your financials. Keep records. Review reports. Hire both a bookkeeper and an accountant. Do not get “cheap” in this area. Get a loan if you need to rather than relying solely on credit cards and personal savings. You don’t have to hide your business debt from the world. Healthy large companies carry up to 20% of their gross revenues in debt. It’s okay.
- Expand your network. Too many women business owners I know “think small.” They don’t feel they’re good enough to be in male-dominated large business groups. Get over it, you need to be there if you want to compete at the same level.
- Get beyond initial training. You know the business basics. Get the training and knowledge you need to manage and accelerate growth. If you are in the Silicon Valley area, consider joining an Executive Support Circle, which is dedicated to accelerate business growth of both men and women. Sample sessions are starting up in June 2010.
