Rising to the Challenge of Tough Economic Times

Women are tough

They are showing outstanding resolve and strength in coping with the current economic crisis and, as owners of approximately half of all businesses, play a crucial role in the nation's recovery. 

Their increasing rate of entrepreneurship is a force that policy makers around the world would do well to consider:

On a global basis, women own approximately one-third of all businesses. They produce from 30% (Latin America) to 80% (sub-Saharan Africa) of the world's food. Their advancement in economic, social and political spheres is undeniable, but their success is constrained by in-equal access to education and training and the failure of many countries - including the United States - to establish equality under the law. However, women do not forget that they can have a strong hand overcoming these obstacles by training their children for a different future than they have had, teaching role equality to sons and daughter alike.

69% of small businesses profitable

According to web research, 69% of small businesses reported a profitable 2008. In perfect correlation to this data, the members of the National Association of Women Business Owners (NAWBO) are faring well.   

Although the state of the national economy is an overriding concern, 52% say they plan no retraction in employment and 24% plan to add jobs.  Similarly, 40% plan to maintain capital investment at 2008 levels and 17% plan to increase such spending.  53% plan expansion into new markets.  54% believe that economic and business conditions will be somewhat better by year-end, and believe their own businesses will be somewhat or much better off  than they are today. For context, NAWBO members on the whole own companies larger than the national averages (nationally, 3% of women own businesses larger than $1mm compared to 7% of males) with 21% employing 10 or more people and 26% making $1mm or more in annual sales.

Women in touch times

Why are women so resilient, even in tough times?  They are optimistic and are generally willing to re-invent themselves or their businesses to react to new opportunities.  Jealous guardians of cash, they are savvy deal-makers, often using barter to minimize cash outlay and gain products needed for their businesses.  They are relationship-builders, and so it flows that they are also frequent and effective communicators and generally deliver A+ customer service.  Although they are notorious multi-taskers, they also recognize the value of winding down and allowing themselves to renew and re-balance.

Women that still aren't satisfied with the progress of their business are doing a number of things to enhance their success.  Assuming that a growth strategy is already in place and owner-operators are measuring and managing the critical performance areas of the business, here are five things that lead to improved business performance:

Intensify the focus on customers and broaden the value delivered to them. Are the customer's needs understood?  Is their opinion asked with regard to value, satisfaction, and service?  Is it easy to conduct a transaction?  Is the product/service delivered on-time and exceeding customer expectations?

Look for existing differentiators or create new ones. Complete the phrase "my company is the only..."  If your company lacks competitive advantages, figure out how to create them.  Understand the strengths and differentiators of competitors, and capitalize on their weaknesses. Be aggressive in advertising and marketing.  In the absence of superior internal expertise, engage a professional provider for these services.

Broaden networks of support.  Join organizations - both traditional and online -  that provide resources, information and contacts that are valuable to business growth.  For women business owners, NAWBO is a great place to start; for international, look into OWIT, TIAW, or the entrepreneurial association in your country.  Serve on boards that can broaden skill-sets or provide a means to achieve social responsibility goals.

Embrace social responsibility as a cost of doing business.  Invest in employees and your community for the common good.  View the bottom line in triplicate:  people, planet and profits.

Actively and strategically participate in social media  Develop skills of self-promotion on social sites such as Facebook (and share with family too!).  For professional networking, create a complete profile on LinkedIn.  I'm also a fan of Twitter but believe in keeping  tweets professional and informative. For professional international networking, try www.connected-women.com  Set aside thirty minutes every day - perhaps in the evening as your day winds down - to freshen the various sites chosen.

As a past national president of NAWBO, I hold it to be the pre-eminent source for thought, influence and commentary on all issues of importance to women business owners. NAWBO continues to take bold steps to be an organizational global beacon with a national platform.  Check out their extensive archives and business resources of at www.nawbo.org   You don't have to be a member to access the site or the archives.