Why Most Women Businesses Stay Small?

November 6, 2017




Most women business stay small because of their mindset more than for any other factor. Here are the difference levels of most businesses.  

  • Level 1 – At this level there is a single point of failure. The founder. Most entrepreneurs don't think past this point without the right mindset even to move to level 2. A very small business, usually without any employees, it doesn’t make enough profit to be a sustainable business. Most businesses start out like this. A business that will succeed in the long-term should strive to quickly move forward from this stage. Most businesses fail at level 1. The main reason for failure at this level in cash flow, not having enough capital to sustain the business. Ensure to have enough capital to sustain your current lifestyle for one year. 

  • Level 2 – The business makes enough profit to be reinvested into the business or paid to owner. At this stage there is usually enough revenue to hire the first few employees. Most business that survive, but stay small are operating at level 2. There is nothing wrong with level 2. You can be happy owning one or even two level 2 small business. It takes an entirely different way of thinking to reach level 3. Most women stay at level 2, because most women have lifestyle businesses. In order to move to level 3 it will require a shift in your mindset. Most people don't realize everything begins with a thought. Level two is comfortable and safe for most entrepreneurs and doesn't not require them to stretch themselves. 

  • Level 3 – The business owner managed to scale the business. A business can only get to this point if the business owner is willing and able to delegate. Most businesses never reach this point. Scaling requires systems. Most entrepreneurs are focused on putting out fires instead of creating systems. Without systems scaling is impossible. Scaling requires a different way of thinking. This is very difficult for many entrepreneurs. Systems make the business founder(s) redundant. Delegating can be a change for people that have a control issue. Your business will never survive if the owner has control issues. Once again it requires a big shift in thinking to scale a business.

  • Level 4 – Large businesses with revenues over $100 million. At level 4 the entire business is built on systems from sales to accounting to customer service. At this level everyone is fairly easily replaceable. The business is a machine. Instead of being dependent on a hero figure like the entrepreneur, the system is the hero.
















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