Women become entrepreneurs for many reasons, but according to a recent article on Fast Company, making more money is rarely one of them. Economic studies have found that businesses run by female entrepreneurs are much less likely than those run by male entrepreneurs to be profitable. Entrepreneurial businesses run by men are 3.5 times more likely to surpass the $1 million sales mark compared to similar businesses run by women. These strategies can help female entrepreneurs meet or even exceed their sales goals and catch up to the profitability playing field.
Building a Team
Women entrepreneurs must grow their business into a team of people that can get the job done with reliability and dependability. While team building takes a significant investment of a woman’s time at the start of the process, this investment is well worthwhile as the teaching stage soon allows the members of the team to perform much of the work so the woman can focus on running her business. Building a solid team also helps when it is time to grow the business and scale up in the amount of production or delivery of services.
Taking Calculated Risks
As a whole, women are less likely to take financial risks as entrepreneurs compared to men running their own businesses. While there is a level of safety in not taking financial risks, it also means that women are starting out with a smaller amount of initial funding and are less likely to take out loans or seek investor financing when the business is ready to grow. Taking some calculated risks can help women entrepreneurs become profitable sooner. Seeking out low-interest loans from credit unions and community banks or applying for grants from the local small business association may necessitate going out on a limb or stepping out of one’s comfort zone, but these efforts can be worth it for the success of the business.
Setting Ambitious Business and Profitability Goals
Women entrepreneurs should not limit themselves in terms of thinking how rapidly their business profits and size can grow. Instead of hoping for 10 percent in a year, setting a more ambitious goal of 50 percent, 100 percent or even 200 percent allows for enhanced creativity for business development. Audacious goal setting forces female entrepreneurs to challenge themselves and succeed in business in ways that they never thought were possible.
Building Business with Other Female Entrepreneurs
Becoming more profitable as an entrepreneurial business requires plenty of teamwork and social support. One way that women entrepreneurs can boost their business and profit levels is to seek out partnerships with other female entrepreneurs. Women who support each other in the business community can share their knowledge, experiences and resources with one another. Working together may allow multiple female business entrepreneurs to reach or surpass their sales and profitability goals from year to year. This business building can also help in providing much-needed social support in the highly competitive market for consumer dollars.
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