Pitfalls Women Business Owners Fall Into Face Forward: Great Tips for Men, Too!

According to the Women’s Financial Network, women start businesses two times the rate of men. As a business owner for 12+ years, here are some lessons I’ve learned along the way.

Written May 04, 2008, read 521 times since then.

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. Neglecting your Rolodex.
The ease of doing business is in direct proportion to the size of my Rolodex and the depth of my relationships. Do you want to grow your business? Call through your rolodex. Do you want to quantum leap your business? Expand your rolodex. Look for good people who you need in your sphere of influence. When I am given a business card, I treat it like gold. One huge lesson I learned from a master networker, was to keep a business card portfolio with me at all times containing the 50 or 60 people I loved referring business to. Referring people is a great way to grow your business!

3. 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 in my network, who would be a good fit for them 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.

4. 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.

5. Treating your 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.

6. 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.

7. Deciding all banks are created equal.
Most banks these days have both a consumer division and commercial division. I suggest business owners start building a releationship with the best darn business banker they can find for their company, today. Business (sometimes called commercial or specialty bankers) are 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. Then the day came. One of our biggest dreams came to life: we made an offer on a commercial condo for our business, and we needed a loan. I called Charlie and I called the bank where I had been banking for 17 years. Charlie ran circles around the big boys. 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.

8. 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 - 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.

9. 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 they have no idea how to create a strategy for the future. 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.

10. Failing to budget everything.
Savvy business owners see the financial responsibility of everything in their business. Phone, lights, life and health insurance, auto expenses, everything. Figure out how much you want to make and add it to your true overhead. And then figure out a plan to generate the revenue to cover all these costs. Sounds simple, but so many fail to do it. Understanding the costs of opening the doors everyday is critical to success.

11. Being the captain of the ship, without a map.
Okay, so maybe there are 11 pitfalls and perhaps this one is the most important. You can flawlessly execute on everything I’ve just shared and more, and still not reach your goals. Being a leader without a plan is like speeding on a dark road without headlights. 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.

The road to successful business ownership is definitely not without obstacles and challenges. Do your best to recognize 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, I had to learn some of these 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.

Kristen Marie Schuerlein started her first business at age 26. Today she is the Founder and CEO of Affirmagy, creators of inspirational gifts available online and through specialty retailers nationwide.

Learn more about the author, Kristen Marie Schuerlein.

Comment on this article

Posted by Dan McComb, Seattle, Washington | May 04, 2008

Outstanding article, Kristen. So, what exactly do you mean by "non-consumer bank?" Is there a particular one that you would recommend here in Seattle?

Biznik Business Networking
Posted by Heather Ziegler, Seattle, Washington | May 04, 2008

I rolled out of bed this morning, cooked breakfast..you know, all the usual stuff...not knowing that I was putting off reading this fabulous article! I felt like you were talking directly to me. It's EVERYTHING that we've been going through and then some.

I hope more people will listen to the advice you are giving here...after 2 years into our business (learning everything the hard way!) we're just now turning on our headlights on this dark road!

Thanks! Heather at Bizi Bee
Posted by Vicki Elam, Klamath Falls, Oregon | May 04, 2008

Awesome Article Kristen! Dealing with women in my networking group has always been a challenge but a rewarding one! I'm a firm believer of hand written thank you notes and your advice hits the nail on the head! Thank you,

Vicki
Posted by Sachiko Miller, Issaquah, Washington | May 04, 2008

Hi Kristen,

Your message is always really helpful!
I love the message

"When I am given a business card, I treat it like gold. "

Thank you so much!!
Posted by Jamie Ridler, Toronto, Ontario Canada | May 05, 2008

Great article. Not only is it practical but there's an underlying value there of running a business with smarts and integrity. Useful and inspirational.
Posted by Sylvia Taylor, Seattle, Washington | May 05, 2008

Kristen - I can't believe you just give away this valueable advice (thank you!!!). It's also very applicable for those doing business with international customers (like myself). Every single tip can be translated to working with someone other than in the US or in the US (treat people as you want to be treated, say thank you, be the captian but have a map, etc). Thanks for sharing your lessons learned so we don't have to!
Posted by Brian Crouch, Bothell & Seattle, Washington | May 05, 2008

Clear, salient and authentic. Thanks for writing.

Social Media Training 1-2-3
Posted by Kristen Marie Schuerlein, Seattle, Washington | May 05, 2008

Dan, thank you for your comment and your question. After re-read the line about 'non-consumer banks' I can see where it was confusing! So, I've updated the first sentence in that tip (#7) and adjusted the lead in to the second sentence. Many banks (WAMU for example) used to serve consumers exclusively. In this case, it wasn't until WAMU acquired a commercial bank that they began working with businesses. I may have served readers better by offering the great experience I've had with a local, community bank, that has a commercial division (the best of all worlds!). The bank I work with is Cascade Bank, and it's my pleasure to recommend them. (I am new to BizNik, I hope that's OK! If I just committed a faux pas, let me know!)
Posted by Debbie Whitlock, Seattle, Washington | May 05, 2008

Kristen, your words are such a valuable reminder for everyone who owns their own business, whether newbies or veterans.

Thank you!
Posted by Bruce Goberville, Hudson, Wisconsin | May 05, 2008

Kristen, Great read. You hit many valuable and overlooked business practices. It IS about the people.

Thanks for sharing.

Bruce
Posted by Dan McComb, Seattle, Washington | May 05, 2008

Thanks Kristen- making recommendations is not a faux pas at all - in fact it's one of the things this site is designed for - spreading word of mouth in a way that anyone can hear.

The only problem I have is that the closest Cascade Bank branch is in Shoreline, and that's pretty far from me in Fremont. Someone also recommend Verity Credit Union - do you have any thoughts on using a credit union for business banking?

Biznik Business Networking
Posted by Kristen Marie Schuerlein, Seattle, Washington | May 05, 2008

Dan - great question about the credit union. I have never considered using one for the biz... although I love credit unions, and use one personally in addition to a national consumer bank.

One note about Cascade... Like you we don't have a branch nearby... We're located on lower QA and I have yet to step into a branch. Crazy, but true. We moved our banking relationship nearly 2 years ago, and once we got everything set up we simply mail in deposits. It's quite wonderful.
Posted by Kristen Marie Schuerlein, Seattle, Washington | May 05, 2008

Heather, Vicki, Sachiko, Jamie, Sylvia, Brian, Debbie and Bruce. I simply didn't want to end the day without expressing my thanks and appreciation for your kind words and kudos. What a delight to be so warmly welcomed into the BizNik community. Wishing you all (you too, Dan) a prosperous week!
Posted by Zita Gustin, Kirkland, Washington | May 05, 2008

A great "knock your socks off" article, Kristen! You have such a wonderful way of sharing important information that makes it very easy to understand. And you write in such a compelling way that you inspire people to think in new ways and take action. Biznikers will be well served when they make time to read your articles! (Welcome to the wonderful world of Biznik!)

The ABC's of Networking ... Always Be Connecting!
Posted by Lisa Kee, Everett, Washington | May 05, 2008

Great article Kristen. We can all use those reminders from time to time. You have also given me some fresh ideas. Thank you!
Posted by Deborah Brown, Seattle, Washington | May 05, 2008

Kristen, what wonderful watchwords you have given us. Some of these are new to me and some reinforce things I get lazy about ;-)

I am fortunate to know Kristen and her business partner Karla and have watched them build their amazing business, Affirmagy, from a dream and an idea. I can say that Kristen walks her talk, 100%!

You go, girl!!
Posted by Karen Rosenzweig, Edmonds, Washington | May 05, 2008

You are always so inspiring - thanks for sharing!
Posted by Betsy Talbot, Seattle, Washington | May 05, 2008

If you guys think this article was amazing, you should try spending a half-day with Kristen. Instead of the usual "feel good" coaching about being great at building your business, she gets down to brass tacks and talks about that taboo subject of money. Making money, lots of it, and having a plan for a great life of connection and contribution.

I just attended her workshop on Friday, and I think she is doing 3 more this summer. Don't just think about it - do it!

The Everywoman Business Resource
Posted by Tia Peterson, Erie, Pennsylvania | May 06, 2008

Kristen - this article is incredible! May I have permission to re-post on my blog with an introduction to you and a link to your biznik profile and business website? This is supremely helpful, really. If not a re-post, I'd absolutely love to blog about it and link directly to this article.
Posted by Kristen Marie Schuerlein, Seattle, Washington | May 06, 2008

Tia, you have my permission to post on your blog with links and credit. Thank you!!!! - Kristen
Posted by Kristen Marie Schuerlein, Seattle, Washington | May 06, 2008

Betsy, thank you for the huge kudos!

I will reveal the details for the next "Connect with Kristen" event in the coming few days. What an event! It was an honor having you there.
Posted by Ilise Benun, Hoboken, New Jersey | May 06, 2008

Kristen, excellent article! In response to your first point about writing a personal note instead of sending an email... I also think it's important to know when to pick up the phone instead of send an email. So much of my email gets buried lately, but when someone calls me, it says, "I'm serious about this!" and I am sure to respond.
Posted by Abigail Fifer, Seattle, Washington | May 07, 2008

I'm new to Biznik (and to business) and this is the first step I've taken here and I found it incredibly helpful! Thanks so much to Kristen for writing and everyone else for their comments. I'm just getting the banking side of things going and am curious to here more about Dan's (and anyone else's) experience with a credit union...
Posted by Helen Martin, Mercer Island, Bellevue, Seattle, Washington | May 08, 2008

Dear Kristen, this is the second article I've read of yours and I can't help but think that you may have a little Keller Williams in you. At Keller Williams we participate in Mastermind groups and have the opportunity to attend quantum leap seminars. We believe in teaching all our agents to create a budget before doing business. The first thing on the agenda before anything else is your "business is your database" and for our 443 class, which is four sales and four listings in 3 months, we send 15 hand-written thank you notes per day, five days a week; which is 75 hand-written notes per week and five personal phone calls per day.

I do have business card holders I create for my clients, but after reading this article, I will also have a copy with me for all networking events.

I agree with Zita that you have a wonderful way of writing and getting your point across where it has the readers wanting for more. I can't wait to meet up with you again and look forward to seeing you at an event.

Sincerely,

Helen

Mercer Island Realtor / Seattle & Bellevue Condos
Posted by Nancy Grant, Portland, Oregon | May 08, 2008

Your article is fabulous Kristen. I too work with women and am thrilled that they're building buisnesses at such a substantial rate. Many need to learn new skills to be successful in business and I appreciate the insights and expertise you have shared with them.
Posted by Kathy Slattengren, Kenmore, Washington | May 08, 2008

Thanks for the great reminder about the importance of handwritten notes.
Posted by Julia May, Bellevue, Washington | May 08, 2008

Kristen,

This is such a helpful article. When I started my business, I wish this had been available at the time.

Thank you for taking the time to share your wisdom.

Julia
Posted by Kimberly Dow, Frederick, Maryland | May 08, 2008

Kristen, thanks so much for the article. I am going to try to write more personal notes, not just rely on emails. I know how much I enjoy getting hand-written notes, so I'm sure others will as well. It will hopefully help me stand out from the crowd. Thanks so much for all your advice!