Women in the Business Arena™ EP113: Why Only 12% of Women-Owned Businesses are Making Over 100k & How to Change It (Part 1)
“The world is designed for a man and we need to change it. We need to shift it. We need to redesign it.” - Sonya Stattmann (34:22-34:29)
Only 12% of women-owned businesses are making more than $100,000 in revenue per year. That’s total revenue. It doesn’t take into account business expenses such as taxes, labor, and overhead costs. And when businesses have low profit margins the money taken home is so much less.
Many entrepreneurs paint a picture of how easy it is to make millions of dollars starting your own business. But that’s not reality. When 88% of women-owned businesses are earning less than $100,000 a year, we have to step back and look at what’s really happening.
“It really starts with us changing ourselves and how we operate, committing to something, using our voice, and being an example to others.” - Sonya Stattmann (21:17-21:30)
There are systemic issues keeping women-owned businesses from thriving. It’s easy to compare ourselves to others. Women often see themselves as failures when they don’t measure up to others. But there’s a lot stacked against us from the get-go. That’s what needs to change.
Many of us think, “Why can’t I make more money?” We assume there’s something wrong with us. But we ignore factors that are unique to women in business. Expenses like childcare aren’t viewed as costs of doing business. But what happens when we have to reduce our time at work in order to care for our children? If it affects our business, then it should be seen as a work expense. Although men do play a role in caring for their children, women are typically considered to be the primary childcare provider. This also needs to change.
Recognize and Transform the Business Arena
We live in a male-dominated business environment. Women are often seen as less capable than men. And so often we feel we have to justify business endeavors by having a certain degree or other indicators of validation to prove ourselves. The more women recognize the nature of the existing business arena, the better they can understand and transform it.
“Competition is out. It’s the way of the old. Collaboration is the feminine value that’s changing the way we do business.” - Laura Shook-Guzman (35:27-35:36)
Women entrepreneurs want to empower other women. But they don’t always know how. It’s shocking how many women in business still hire male coaches. We need to hire and support women. The more we invest in them, the more money those women are making, and the more likely they are to support others.
We can change how we operate and be examples for others. If we’re worried that everyone else is making more than we are, then we position ourselves in a place of disadvantage.
Focus on Collaboration Over Competition
Competition is the way of the old business system. Women are fostering a new way of doing business. Collaboration is the feminine value that’s changing the way we do business. Women are talking to each other and recognizing the things that are wrong in business. More importantly, we’re coming up with solutions.
When we operate from a place of alignment between who we are, our unique gifts, and our strengths, we can turn business as we know it on its head. Instead of molding ourselves to the way business has always been, we can redesign the business world to fit us as we propel ourselves forward.
How to get involved
- Join the Women in the Business Arena Group on Facebook and continue the discussion starting next week!
- Reach out to us - we’d love to hear more about where you’re at in life and business! Find out more here!
If you liked this episode, be sure to subscribe and leave a quick review on iTunes. It would mean the world to hear your feedback and we’d love for you to help us spread the word! If you would like to subscribe via email, click here.