7 startup tips for women entrepreneurs

It’s time we updated our notion of what an entrepreneur looks like.

While the popular image still skews toward the risk-taking male, it’s actually women who are more likely to be starting a business these days.

Over the past two decades, the number of women-owned companies grew at nearly twice the rate of all businesses (42 percent versus 24 percent), according to the Center for Women’s Business Research. Plus, in the same 20 years, businesses owned by women of color grew a whopping five times faster than all businesses (120 percent versus 24 percent).

So, women, it’s a good time to launch your dream. You now have lots of company and, at last, there are many role models of successful women business owners who have been there, done that, and can offer support and strategic advice.

To get you thinking along practical lines, here are tips from women entrepreneurs across the country that can help you jump some initial hurdles and avoid a few beginner missteps. Just keep in mind that no entrepreneur can grow a business without making (and learning from) some mistakes.

1. Don't underestimate how much startup cash you’ll need.   "In my experience, starting a business always costs more than you think," says Nicole Fikes, who in 2007 launched Daphne & Clio, which offers fine art giclee prints and images for weddings and anniversaries.

   New entrepreneurs often think they can siphon money from the household budget or other income. That rarely works. You need at least 12 months of living expenses on hand before you devote yourself to the business.

   As a result, you will need to cap expenses. So, Fikes says, "Cut the fluff. If you’re down in the trenches, ask yourself, 'What do I have to have?'"

2. Don’t be a perfectionist.   You have way too many challenges and tough calls to be able to get every detail exactly right. With limited resources, much to learn, and so little time, you must quickly prioritize.

   "What you eventually launch will likely be an incomplete version of what you envisioned when you began building your business. And that’s OK," says Harleen Kahlon, founder of DamselsInSuccess.com, a social networking site for professional women. "Developing your business is a long-term process and you can improve things over time."

3. Work smarter with technology.   "Have a Web site, no matter what kind of business you start," says Kathy Sweeney, who has run The Write Resume, a resume writing and job interview coaching business for more than two decades. "Web sites denote stability and allow customers to shop 24/7."

   For more about online support and launching a site, view the features offered by Microsoft Office Live Small Business.

   Also, review the range of business software and applications (such as accounting or desktop publishing programs), and the power of blogs and online marketing, to see what can best work for you at this stage. See these tips about using technology to help your business.

4. Don’t treat the business like a hobby.   Over and over, women business owners emphasize that you must be serious about your commitment to a startup.

   "You’re not going to be able to work with the kids underfoot," notes Anita Bruzzese, a nationally syndicated workplace columnist who has been a freelance writer since 1989. Find child care for at least part of the day so you can accomplish quality work.

   In addition, Bruzzese says, "Women often believe that if they work hard, good things will come their way. But that’s not the way it works. Women must learn to ask for what they want and actively fight for rewards."

    Tip   These online resources offer advice and practical information:

   • The Association of Economic Opportunity, a nonprofit founded in 1991, helps microenterprises and underserved entrepreneurs to launch and grow.
   • SCORE is a national organization with local offices around the country and 10,500 volunteer counselors. They offer free advice to small-business owners. SCORE volunteers are working or retired business owners and corporate executives.
   • The Office of Women's Business Ownership, part of the U.S. Small Business Administration, also supports women entrepreneurs. It provides information and advice to help prospective owners secure financing and more, both online and at local Women’s Business Centers around the country.
5. Don’t expect to know how to set prices right away.   Pricing is one of the hardest things for business owners to figure out. All too often, newcomers set very low prices for their services or products, thinking that lower prices will increase sales. But that only means you end up working for nothing. Instead, think of how much you must charge in order to turn a profit.

   "I underbid my first client so much I hoped they didn’t hire me," confesses Sally Murdoch, who started a public relations firm in Portland, Ore., a few years ago. Her advice for startups: "Use your best judgment, but know you will still blow it sometimes."

6. Don’t go it alone.   It’s easy to get so caught up in the daily whirlwind that you lose both perspective and an up-to-date sense of your market or field. It’s also very lonely.

   You need a support system. That can take many forms, depending on your personality, business, and interests. Some options include:

   • Joining a small-business networking group. These typically limit membership to one or two businesses per field, so the group maintains a cross-section of interests and no one directly competes with each other. To find one, ask your vendors, suppliers, or your accountant or lawyer. Visit several to find a good fit.
   • Becoming involved with a professional or trade association, which probably will include members from larger and smaller companies. This will give you a sense of the overall issues in your arena, as well as good contacts.
   • Setting up your own peer group of founders or owners, whether all women or coed. Have it meet weekly or monthly to talk about resources, challenges, and solutions of running a business. Peers can be very helpful.
   • Making sure you see friends, your spouse or romantic partner, and family members on a regular basis, so you don’t lose your life as you’re building your future.
7. And don’t forget to reward yourself.   Just like any employee or executive, you deserve some perks and incentives. Breaks at the spa or the gym or weekend trips are good ways to stay motivated.

About the author   Joanna L. Krotz is the founder of Muse2Muse Productions, a custom content company for business and consumer magazines, newsletters and digital imprints. Krotz has launched marketing Web sites and e-news portals, as well as created magazines and online marketing for a variety of companies. She is co-author of The Microsoft Small Business Kit, a 500-page guide to launching and running a small business.