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Can you recognize signs that your company's culture isn't working? Get advice from the experts on what to look for–and how to fix it.
Learn moreIn her Postcards blog, Fortune editor at large Patricia Sellers featured a revealing guest post by Susan Wilson, CEO of The Judgment Group and FundHer. Wilson’s column focused on women and their puzzling hesitancy and discomfort with money.
To illustrate her point, Wilson conducted a test at Georgetown University using 15 female undergrads. Before the students arrived, Wilson placed $20 bills on a series of random desks. When the women entered, they ignored the cash and even avoided seats where bills sat on desks.
Wilson’s point was to show that in general, women carry passive feelings about money and may also have preconceived rules about who deserves money and why.
Here’s what I had to say in my guest post at Postcards:
When you speak to women about their businesses, they start with their inspiration, mission, client relationships and their personal journey as entrepreneurs.
After a few probing questions, they get to the business model and how they make money.
Male business owners have the order a bit different.
This isn't true for all women, but more women than men are "intimidated by the numbers," they say. "I'm just not a numbers person..."
Usually, that is far from the truth.
The intimidation is a psychological barrier. Asking for financing comes less naturally for a woman. She feels that she should do it on her own.
Size of business also matters less. And size (pardon the stereotyping here) absolutely matters most to men.
The mission of the business is what drives women who start them. The size of the profit drives their male counterparts.
I noticed this recently as I was speaking to a married couple who own a retail business. The husband shares details about inventory turns while his wife talks about the specialty merchandise she carries for the unique needs of her customers.
She's focused on the relationships; he's focused on moving the goods.
Men also tend to have a hard and fast goal in mind. They want to get to $X in revenues or into Y locations. The goal allows them to plan their way to it.
Women entrepreneurs tend to operate with a more general goal to grow their business. Their thinking then goes to the plan: How many customers? What suppliers, margins, cash flow will get them there?
The upshot of all this: Women start businesses at 1.5 times the national rate. And women are driving the growth of our smaller business—to a point. That is, women-owned firms have higher growth rates than male-owned firms, but only up to the 100-employee and $1 million mark.
Unfortunately, only 3 percent of all women-owned firms have revenues of $1 million or more. This compares to 6 percent of all male-owned firms.
What's the best thing that women who have large and successful businesses can do? Show other women that knowing the numbers is critical and that making money is a noble outcome of owning a business. Remind each other that bold goals to grow don't have to come at the price of mission. Success comes with a plan to achieve it, and that starts with the end in mind. And who better to juggle the multiple objectives of profit and passion than a woman?
And the best way to break woman's psychological barriers about money? Teach girls at a young age that they shouldn't shy away from the numbers—and especially from the money.
As a small-business owner, are you about passion, profit, or both? Share your comments below or email me at susan@openforum.com.
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Susan Wilson 10 months ago
I appreciate the follow up but I’m wondering if we’re doing more harm than good by fueling the male vs. female debate. It seems the emotions and intentions from all sides are so powerful we actually ‘feel’ we’re ‘doing’ something (other than talking). Susan, I often quote you in saying, “Women create the companies they want to work for” so please know I’m coming from a place of absolute respect and admiration for you and your work. No argument, the debate was once necessary but lately it seems like our well-intentioned questions (variations on the male vs. female debate) are patterns of ‘enabling’ similar to those Georgetown undergrads in my $20 experiment. Are we all just pretending? Don’t the statistics prove women in business are NOT making progress – particularly in the United States? Women control the economy so why should we EVER make less money? Yes, entrepreneurship offers women the fastest route to economic independence and wealth which is why women start businesses at twice the rate of men. But today in the U.S., 40% of businesses earn just 4% of total revenues. The 40% owned by women earn just 4% of revenues. That’s not a coincidence!We’ve known for decades women and men think, decide and act in different ways for different reasons – based purely on how our brains are wired with respect to gender. But we haven’t allowed that truth to trickle down to business. I’m fighting to be heard and sadly women are the first to fight me on what seems to me to be a fairly obvious but game-changing truth: Women entrepreneurs are different than men. We are equal but different. I handcrafted FundHer's new logo as a visual attempt to convey that declaration and own the point. It seems clear from your post you agree so I’m particularly curious to see what you think of the evolution of that $20 experiment at www.IndieGoGo.com/AdviseHer as well as the logo and of course am wondering what we can do to CREATE the future?