Top Ten Pitfalls Women Business Owners Fall into Face Forward

Top Ten Pitfalls Women Business Owners Fall into Face Forward
By Kristen Marie Schuerlein

According to the Women’s Financial Network, women start businesses two times the rate of men. As a business owner for over a decade, I’ve learned so much along the way. Here is a list of common pitfalls (some of which I’ve fallen into myself) I encourage you to avoid.

1. Expecting e-mail to build a relationship.
Want to really wow someone? I don’t care how big or small your company is it’s essential that you do this one thing like your life depends on it: write personal notes. Not an e-mail, not a typed letter…. a handwritten personal note, and do it within 24 hours of meeting someone, or talking on the phone. You’ll make a powerful impression in a world drunk on e-mail and text messages.

2. Failing to pro-actively refer people.
As strongly as I feel about writing personal notes, this is a close second on the success scale. Get in the habit of referring people powerfully. When I meet new people I genuinely think about the people I know, who would be a good fit and make a warm introduction. No “here’s a card, call these guys.” Rather, I take the time to personally connect them. In my early 20’s I heard Zig Ziglar give a presentation and declare, “To get what you want in life, help someone else get what they want.” I remember thinking “What? That’s crazy. I don’t have enough time to get me what I want; now I am supposed to help someone else?” Years later, the light bulb went off. Zig is right. The goodwill and positive energy you create from a great referral will always come back tenfold.

3. Forgetting to say “thank you”.
Most of us do a pretty good job of thanking our customers, or at least we think we do, but do you ever thank your vendor partners? As a small business we rely heavily on the work of others to get the job done. One of the smartest things I ever did (and I had no idea the impact it had until recently) was give a gift certificate to Amazon.com to Craig, the owner of the computer tech company we work with. I knew that he loved to listen to books on CD, so we thought this was a great way to thank and acknowledge him for always serving us so well. Computers are one of the main arteries in our business so we view the guys who keep them running as vital members of our team. Over the years, Craig and I have become friends and he has helped me grow our company in untold ways. While talking one afternoon he reminded me of the gift certificate we gave him and in his words said “that’s when I realized you were people I really wanted to deepen the business relationship with. I am impressed with how well you say ‘thank you.’” I think the gift certificate cost us $50. The relationship to this day is priceless.

4. Treating people poorly and expecting fabulous service.
Want to grow your workforce exponentially overnight? Bend over backwards to get superior vendors on your team and make them feel like gold. Our vendor partners make us look good all day long. Why? Because we never beat them up on price, we do whatever we can to avoid the “ASAP” assignment, and we treat them like absolute peers. The miracles we have performed because our vendors rose to the occasion time and time again for us are countless.

5. Putting up with business as usual.
Run for the hills if someone says ‘it’s just business.” This is the ultimate tip off that this person believes they can treat you poorly, pay you late, and expect the moon and the stars because “it’s business.” I have yet to hear those words inside a win-win relationship.

6. Deciding all banks are created equal.
There is a huge difference between consumer and commercial banks. I’ve found business bankers can be worth their weight in gold. I met ours at a networking event just about two years before I needed her, and I told her so. Even with that, she kept in touch and began building a relationship with me. When the day came that I needed a loan for a piece of commercial real estate, I called Charlie and I called the bank where I had been banking for years. Charlie ran circles around other folks. She made the deal happen when they could not. I was amazed. Get a banker on your team. Think about what’s in it for them – how they make money – and become a great customer. Start this today by getting over my next Pitfall.

7. Thinking OPM (Other People’s Money) isn’t for you.
Get a line of credit set up now. It’s not a matter of if, but when you’ll need it. Banks don’t want to talk to you when things are tight. Having a healthy line of credit – as big as you can get based on your revenue – will be a blessing some day. In 2003, my thyroid went whacko, dramatically slowing my performance and my business suffered because of it. Looking back I realize that without a line of credit – Other Peoples Money – in place, we could have lost our company.

8. Believing all accountants do taxes.
Through great pain and expense I finally learned that when it comes to taxes, most accountants report on the past and are not experts at how to build a strategy for the future. I learned this one the slow way. And I shutter to think what it meant to my bottom line year after year. You have a family doctor, right? Would you go to them for heart surgery? Not on your life. Just like doctors, accountants specialize. Get yourself a tax expert AND a general accountant. You’ll be very happy you did, and so will your accountants.

9. Failing to budget everything.
Savvy business owners see the financial impact of everything in their business. Even the smallest of companies should have a budget for phone, lights, rent, supplies, salaries, legal fees, dues and subscriptions, equipment, everything. Armed with a detailed budget you can develop a plan to generate the revenue to pay all these costs, and then some. Sounds simple, but so many fail to do it. Understanding the costs of opening the doors everyday – whether you generate a single sale – is critical to success.

10. Being the captain of the ship, without a map.
Of all the lessons learned, this may be the most important. You can flawlessly execute on everything I’ve just shared and more, and still not reach your goals. Being the head of your company without a plan is like speeding on a dark road without your headlights turned on. Your driving blind and may be heading for a cliff. The surest way to get where you are going is to map out a course of milestones and landmarks, and plant yourself firmly at the helm. No one cares about your dreams more than you. Give yourself permission to dream very big for your business and immediately begin building a team to get you there. I know the investment is worth your time.

The road to successful business ownership is definitely not without its twists and turns. I encourage you to do your best to spot these pitfalls before they become pitfalls. It doesn’t guarantee you won’t hit a bump here or there, but it does provide some valuable insight into what to expect. After all, each of us will end up learning some of lessons the hard way. But, those experiences helped me become a smarter and more successful businesswoman. My hope is that sharing them with you will help you do the same.

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