Here we are five years later. While the number of women-owned businesses continues to grow, nearly two-thirds are struggling with annual revenues of $50,000 or less.

Why do female entrepreneurs lag behind?

Why do female entrepreneurs continue to lag significantly behind men?  In my opinion, it’s all about money.  First, when women start businesses they typically use their personal funds, credit cards, or loans from family or friends.  Only a small percentage of female entrepreneurs seek start-up capital.

More importantly, women business owners tend not to seek growth capital for their businesses.  When they do, their success rate falls well below men.  According to a recent survey from Biz2Credit, women-owned firms have higher operating costs, slimmer margins, and lower credit scores than businesses owned by men. Therefore, it makes it difficult for them to find the capital they need to grow their businesses. The Biz2Credit research shows that loan approvals for women owned firms are 15 – 20 percent lower than male-owned companies.

3 strategies for getting ahead

So what do women business owners need to do to build million-dollar plus organizations?  Here are a few suggestions.

Focus on the money.  Despite the strides women have made in business, there is an underlying sense that it’s unfeminine for women to aggressively strive to make money.  When I’ve worked with aspiring female entrepreneurs, they often tell me they aren’t interested in the money.  Really?  Then why go into business, I ask.  Women need to be more focused on growing their bottom line profits without feeling ashamed to admit it.

Be a business leader, not a den mother.  Women tend not to think of themselves as a CEO, but more like a hands-on member of the team that should be involved in every aspect of their business.  Their employees become like family members to them, and therefore decisions are frequently made based on emotions as opposed to business needs.  A growth focused organization must have a leader that can step back from the day-to-day details and engage other people to do the work.  You have to let go to grow.  Growth organizations need leadership that can build a dynamic team.

Educate yourself on funding options.  Women aren’t seeking equity capital at the same rate as men.  Various expert calculations find women receive less than 10 percent of all equity financing.  In part, that number has to do with bias, but also it’s the result of a lack of understanding of this type of financing.  Organizations such as Springboard Enterprises and Goldenseeds are working to change this scenario by educating women on how to position their businesses to attract equity capital.  It’s often this type of funding that allows a smaller company to accelerate growth.

What other advice could you offer to women-owned businesses to help them succeed?  What strategies have worked for you?

Now, I’m not a gambler, but my team liked to hit the casinos after a long day on the trade show floor.  Wanting to build camaraderie with the team, I’d usually tag a long for a little while.  Typically, I’d find a video poker machine where I’d invest $20 that would usually entertain me for a couple of hours. Once the money was gone — so was I.

One evening, one of my team members decided to join me.  He watched as I bet the minimum — 25 cents — on each hand.  Finally, he said, “You’re getting some good hands. You should really bet the maximum, so if you hit you’ll win big.”

“Nope. I’m happy with my quarter bets,” I explained.

A few hands later I hit a Royal Flush.

“Oh man. You should have been betting the max,” he said.

If you aren’t willing to take big risks in business, you won’t reap the big rewards.  If I’d been betting the max, instead of $250, I would have walked away with $2,500.

Of course, betting on video poker is much different than betting on your business. Risk is a part of doing business, but it’s not a game of chance.  As a smart business owner, you learn to take calculated risks. Yet many entrepreneurs are paralyzed by the fear of failure. The bigger the risk, the greater the fall, they fear.  But should they be afraid?

No one likes to fail, but failure is an opportunity to learn and grow.  The key is to fail fast and to move forward with renewed energy.  As one of my favorite celebrities, Julie Andrews, said, “Success to me is failing 19 times and succeeding on the 20th try.”

While there’s no need to fear failure, it’s important to remember a couple of things.

1.  Do Your Homework.

As I noted gambling is a game of chance, but in business you need to do more than guess.  Many entrepreneurs make the mistake of following their gut instinct which by itself isn’t much better than playing a guessing game.  Savvy business owners understand that before they gamble on their success, they need to do their homework.  Make sure you research every opportunity and analyze the risk and reward potential.

2.  Set a limit on your losses. 

Just as I noted above, I limited myself to $20 in Las Vegas.  If I’d lost that amount, I would have walked away.  You need to do the same with your business risk.  Determine how much you can financially risk without winding up in the poor house.  Never make the mistake of throwing good money after bad.  While there’s no hard and fast rule to help you make this assessment, if you do your homework you should be able to have an estimate of a reasonable amount of risk for the return you’ll get on your investment.

Playing it safe — always following the tried and true path — won’t help you build a wildly successful business.  So if you’re wondering why your small business is struggling, think about your strategy.  Are you playing it safe or are you willing to take a big risk?

What are you doing to move past fear and take calculated risks? Tell us in the comments below!

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

I’m not literally talking about ice cream, but rather the unique idea that makes a business stand apart from its competition. Consider the mind-boggling, creative flavors Jerry Greenfield and Ben Cohen introduced to the market when they launched their ice cream business some 30 years ago.  These two friends who met in junior high school weren’t having much luck building a traditional career.  Although neither one knew anything about starting a business, they both knew they loved ice cream.  So they split the cost of a $5.00 correspondence course on ice cream making and then leased an old gas station building in Burlington, Vermont, where they opened for business in May 1978.

The Ben & Jerry story could have ended right there in Burlington.  Let’s assume they followed the path of most businesses and dished up traditional, tried and true flavors.  Their tasty treats might have included the standards — vanilla, chocolate, strawberry, maybe even a little butter pecan.  Perhaps their little business would have enjoyed some success. Maybe they’d have eventually opened a few additional locations, but most likely they wouldn’t have ever become a major hit in the market.

But instead of following the traditional path, the dynamic duo got creative.  Using an old fashioned ice cream freezer, they churned out funky flavors chock full of all kinds of goodies.  Customers stood in lines stretching out the door clamoring for a taste of the delicious new treat.  No other ice creamery offered anything like Ben & Jerry’s.

When it came time to mass produce their fun flavors, Ben and Jerry hit a road block that might have halted their climb to success. Experts and engineers told them that the Cherry Garcia recipe had too many ingredients infused into the base flavor; therefore, it would be impossible to produce.  Undaunted, the two refused to hear the word impossible.  Their team worked until they devised a system to bring the flavor to market.  In other words, they made the impossible, possible.

So when I see small business owners struggling to succeed I ask, “What’s your Cherry Garcia?”  What are you bringing to the market that your customers can’t get anywhere else?  And are you allowing yourself to accept limitations without challenging the status quo? Great businesses find their uniqueness, and they defy boundaries.

What is the Cherry Garcia for your small business? How has it helped you stand apart from your competition?

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

Here are a few tips:

1. Get organized now.

Don’t procrastinate.  When you wait until the last minute to pull together the information you need, the greater your chances of missing something.  Start by putting all your tax-related documents in one place. (A transportable file box works well for me.)  Then, once you think you have everything together, start organizing your documents by category.  This will help you identify in advance what’s missing.

2. Familiarize yourself with available deductions.

There’s no need to become a tax expert, but there’s no excuse for being a novice either. Type small business tax deductions into any search engine, and you’ll find a wealth of information on the top tax deductions for your business.  Familiarize yourself with what is available and appropriate for your business.

3. Work with a professional.  There’s nothing wrong with using online tax preparation software, but as complex as our current tax code is, I strongly advise you to have your business tax filing reviewed by a professional before you submit it.  Small businesses often miss available deductions or mistakenly write-off ineligible expenses.  For example, consider the farmer who tried to write off his food and medical care for his toy poodle as a guard dog for his farm buildings.  Or the professional ballerina who was surprised to learn her tummy tuck wasn’t a deductible expense.  If you don’t want to hire a professional tax preparer, you can go directly to the IRS for assistance.  The agency provides assistance online, by phone or in some cases through Taxpayer Assistance Centers

Failing to take advantage of legitimate tax deductions results in your business being taxed more than it should.  Be smart this tax season.

Have you started your taxes? Do you have any tips you’d like to share that have made the planning and filing process easier for you?

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

I’m happy to see the majority of small businesses owners like me are enthusiastically embracing social media as a smart, cost-effective way to market their businesses. But even for a social media junkie, trying to stay on top of the latest and greatest is challenging.  The social media market changes rapidly, and there is no sign of that trend slowing. If you’re a newbie or a novice user, the task of successfully understanding and using these techie tools to grow your small business can be daunting.

Just recently, new statistics showed that Google +, the new kid on the block, is now number two behind Facebook, overtaking Twitter. Many companies with their ear to the social media ground have already found themselves on the positive side of the learning curve with Google+. One aspect that these small businesses are taking advantage of is called Google + Hangouts – a new approach to virtual meetings and video chat.

I recently had the opportunity to speak with a few small business owners to find out how Google + Hangouts has worked for them, where it may fall short, and how to avoid common pitfalls for first time users. These few tips can help you navigate your way through understanding how Hangouts works, and whether or not it would be an asset for your small business.

1. Get the most bang for your buck. 

Small businesses with a strong online presence have found Hangouts to be user friendly when integrating it with existing social networks and YouTube channels. Babette Pepaj, founder and CEO of BakeSpace, Inc., the Web’s first food-focused social network, has successfully integrated Google + Hangouts into their online marketing program with great results.

“We love Google Hangouts! The technology allows us to have a vibrant conversation with guests from around the world while streaming the video live for all to see,” Pepaj says. “We tried previously to produce videos for YouTube without using the G+ Hangout platform. We found the process of transferring, formatting, and uploading video to be a major hassle. Thanks to Hangouts, we now login, click broadcast, and our show is posted to YouTube a few minutes after the episode wraps up.”

2. Make sure your team is familiar with the unfamiliar in advance.

With any new technology, the learning curve can cost you more than time if it interferes with a productive meeting. Stephan Hovnanian of Shovi Websites knows this all too well. “Not everybody is aware of this new video chat technology,” he says. “Despite its 500 million plus users, far fewer are familiar with how to use it.  Unfortunately this, coupled with sub-par equipment, can really derail a potentially great business meeting.”

Hovnanian recommends investing in a quality camera and microphone with noise canceling capabilities for the best quality video hangout. “My advice: Make sure all users are clear on the set-up, and how-to of Hangouts a few days prior to any scheduled meetings. Pre-preparation with new technology is always a best practice to avoid real-time hang-ups,” he explained.

3. Distance is no longer a disadvantage. 

Google+ Hangouts helps small companies stay connected with their teams regardless of where they’re located, and currently, there’s no cost for multiple party participation.  ONA Bags, a company that produces premium, handcrafted camera bags, has team members located in several cities around the country.  “Most of the time, it’s possible to work anywhere with an Internet connection, however, we rely on Google [+ Hangouts] to make that flexibility work,” explains Christine Amarose, the company’s brand and social media manager.  “Features like document sharing, real-time collaboration, and integration with Google Events makes Hangouts a powerful tool for those with long distance team members.”

Have you tried Google+ Hangouts for virtual conferencing and chats?  What was your experience? If you haven’t tried it, what’s holding you back?

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

The secret to this community’s success is collaboration.  There is a strong small business network and the businesses all work together to help each other succeed.  Instead of competing against each other, they cross-promote each other.  They host special events in each other’s locations.  Most importantly, they support each other in every way.

Starting and growing a small business is difficult. In addition to the day-to-day challenges of building a business, the sluggish economy is taking its toll.  Far too many small firms are struggling to keep the doors open.  Sadly, most of the businesses I talk with admit that they’re having a tough time.

Aristotle wrote, “The whole is greater than the sum of its parts.”  In other words, we’re stronger together than we are as independent business owners.  When we work together toward the common good of building our business communities, the results exceed anything we could achieve on our own.

Operating a small business can be an isolating, lonely experience.  You juggle myriad responsibilities from marketing, accounting, human resources, even janitorial.  Imagine how much more successful you could be if you had a team of other business owners with which to collaborate.

Take a look at your local business community. How supportive is it? Consider taking the lead in building a collaborative business network in your area.  Look for ways to promote each other.  Host a special event to attract new customers and clients to your area.  Become a marketing cheerleader for each other.

In addition to marketing and promotional activities, establish a resource-sharing network, and be willing to lend a hand to a fellow business owner who needs assistance.  Decades ago, communities came together to help a local farmer build his barn. In the same way, small businesses should collaborate to help each other build their businesses.

To find a local small business network in your area, check out the local chamber directory on the U.S. Chamber of Commerce website.

Collaboration, not competition, is key to small business success. How so you see small businesses in your area working together to build mutual success?

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

Now, there’s another concern of which you need to be aware. Cyber-bullying is on the rise and it’s causing serious problems for employers. According to a recent employee survey, over half of the respondents believe their company is responsible for the online behavior of their co-workers, and 25 percent say they aren’t protected from cyber-bullying within existing company policies.

What constitutes cyber-bullying?  Eighty percent of the survey respondents believe that posting unpleasant or defamatory remarks about a co-worker constitutes cyber-bullying.  Other employees noted romantic advances from colleagues or supervisors, negative comments about their work or appearance, and secretive discussions about their work performance all to be forms of cyber-bullying.

In addition to affecting company morale, cyber-bullying may also lead to workplace violence.  Fifty-one percent of the surveyed workers admit they would confront colleagues in person if they felt they were a victim of cyber-bullying and this may result in a heated exchange.  Furthermore, an employer could be found liable if the offending behavior rises to the level of harassment or discrimination as defined by federal and state laws. That’s particularly true if the employer was aware of the conduct and took no steps to remedy the situation.

While you can’t control everything your employees post in social media, as a small business owner you need to maintain a written social media policy.  Review the policy with your team so everyone is aware of what’s acceptable and what’s not.  Define the consequences for the inappropriate use of social media.  Most importantly, encourage employees to be very careful about what they post on social media platforms.  Bottom line:  If you don’t want to see it in the headlines of the New York Times, don’t post it.

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

As I was thinking about habits, I realized that we also have habits in the way we manage our small businesses.  Every business owner has a way of doing things, and may not even be able to explain why they do it that way, other than it’s just the way things are done.  It’s easy to get stuck in a rut when you’re busy with the day-to-day operations of running your business.

Maybe it’s time to shake things up a bit, and the beginning of a new year is a great time to get a fresh start. So in addition to your personal resolutions, why not take a close look at your small business and think about bad habits you could resolve to change.  Are certain aspects of your business running on auto-pilot?  Are you guilty of procrastinating too much?  Are you sloppy with tracking your financials?

No matter what bad habits are limiting your small business success, don’t overwhelm yourself. In order to be successful in changing behaviors for the better, tackle it a little at a time. Choose one habit that you’re ready to break and focus on it. Often a change in one behavior serves as a foundation for additional breakthroughs.

Set realistic goals for yourself, too. For example, if your office is a disorganized mess, don’t try to dramatically change everything at once. Instead, choose one aspect, such as your filing system, and get it under control.

Don’t be afraid to ask for help in breaking your old habits. You may need someone with more experience to provide some guidance, or perhaps a buddy could help keep you on track. Consider partnering with another business owner and hold each other accountable.

Experts say it takes 21 to 28 days to break a habit. Personally, I believe it takes much longer.  But the point is, habits are much easier to make than they are to break, and the longer you’ve been in business, the more difficult it will be.   Don’t get frustrated if you falter a few times. Stay focused on your success. Here’s hoping 2013 is a prosperous year for your small business.

What habits are you trying to break in managing your small business? How will your bottom line benefit if you are successful?

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

Now I love making money and I’m always looking for new sources of revenue. But I’m also a small business expert, so I know what constitutes a genuine business opportunity and what doesn’t. Turning my hobby into a business venture isn’t a smart idea. Allow me to explain.

1. Full-Time Commitment

Many people today are finding joy in turning their hobbies into a full-time business. The most important step if you’re considering turning your hobby into a business is to make sure you’re ready to make it a full-time effort. Some people try to run a full-time business on a part-time schedule, and that’s not going to cut it. You must devote 100 percent of your time and energy to your business venture in order to build success. I already have two businesses that occupy my time. I’m not in a position to make a full-time commitment to a third.

2. Personal Satisfaction

Another important factor to consider before you transition your hobby into a full-time business is your enjoyment level. If your hobby becomes your job, will it cease to be a pleasure? It’s common for people to burn-out on the hobby that once provide much enjoyment. Think about it this way. Have you ever eaten a certain food, over and over again and then suddenly found you didn’t want it or particularly care for it anymore? Sometimes too much of a good thing can ruin the experience. Personally, knitting is a release for me. I don’t want to “have” to do it.

3. Where’s the Beef? 

Can you truly make money from you hobby to justify a full-time effort?  Do some market research and determine how much you could charge for your product. Is it enough to make it worthwhile?  Consider my scarves. If I knitted 40-60 hours per week, most likely I could only knit 4-6 scarves. I’d have to charge a lot of money for each scarf to make it a viable venture for me, and I doubt a consumer would be willing to pay such a high price.

4. Organize Using Professionals

In addition to being ready to devote the time it takes to build your business, you should also make sure you set it up appropriately. It’s important to get the professional advice you need. Don’t hesitate to hire professionals such as lawyers and accountants. In other words, stop treating it like a hobby and start treating it like a business. Getting the right advice in the beginning can make a huge difference down the road.

5. Minimize Start-Up Costs

Its smart business to keep your initial start-up costs low. Familiarize yourself with inexpensive resources that can help you build your business professionally without breaking the bank. For example, there are website design and hosting options which allow you to create a jazzy website for a minimal cost.

6. Ask for Help

You don’t have all the answers; isolating yourself when you’re trying to build a business is risky. Get out and talk with other business owners and professionals. Don’t be shy. Ask questions and learn from other successful business owners. Most entrepreneurs are happy to share what they’ve learned on their journey.

7. Spread the Word

Build it and they will come. Nope!  It doesn’t work that way with small businesses. You have to spread the word about your business venture. Learn how to leverage inexpensive marketing tools such as social media platforms, networking and email marketing.

Did you turn something you enjoy into a small business? Share your challenges and successes in comments.

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.

Many business owners pride themselves on doing business based on the honor system.  In an ideal world, I would support that 100 percent.  In fact, I’ve personally done business on a handshake in my own business.  But it takes getting burned only once before you realize that it’s a good business practice for all parties involved to memorialize your agreement in writing.

I served on a jury for a civil case in which a contractor sued a property owner for money owed on what the contractor referred to as a “contract.”  The property owner counter-sued the contractor for reimbursement of money he claimed he had to pay to have the work redone because it was not done according to specifications.  The problem was that neither party had bothered to get a signed a contract, and each had a different version of a document they claimed represented their agreement.  It was a very boring trial, but in the end the jury didn’t award anything to either party because neither could prove its claim.

While your small business may not be able to justify the expense of a lengthy legal document, you still need to create a document that outlines precisely what each party will do, when it will be done, how much it will cost, and any other specifics that are necessary for the satisfactory completion of the project. Whether the contract is made with a prospect, vendor, or a business partner, both parties need to sign and date the document.

When you’re working with an outside vendor providing services such as photography, website design, or graphic design, remember to make the agreement a work-for-hire contract.  In other words,  make sure you own the sole rights to whatever work the vendor does for you.  If you don’t establish expectations upfront, your rights to the product you’ve purchased could be limited.

So protect your small business and get everything in writing!

Have you had experiences with informal business agreements gone wrong? What other advice do you have for small business owners?

Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. AT&T has sponsored this blog post.