When I founded my software company so many years ago, I was fortunate to have an immediate client who actually paid me well for my time. As my company and my relationship with this client expanded, we were also able to get paid to develop our software product. In essence, our software was customer funded and required no more outside capital than a line of credit to get us over certain growth spurts. We were able to parlay revenues from our services into the areas of our business we needed to grow. We bootstrapped.
Although we sold software, the majority of our revenues came from services, so we determined our budget based on how many hours we might bill and projected out from there. Borrowing or raising capital never entered my mind. Oh, I remember stating early on that I wasn’t looking to be the next Microsoft, but I also remember distinctly the reason: I didn’t want to lose control. Even though our company grew to multi-millions in revenues from what I considered being scrappy, I honestly think I was afraid of too much success.
I don’t know if I’ve always been that scrappy, but looking back I realized I needed to be to get through college. I had to work 3 jobs at one time to pay for college myself (eating Ramen Noodles in the tough times) because my parents didn’t have the means at the time. But at least then, I filled out every application for a scholarship I could find and opted for all the student loans possible. So why didn’t that translate into my business years later? In my first business, I never really thought about what I could do with someone else’s money.
Last week, I attended a focus group of sorts at the SBA headquarters in DC sponsored by the National Women’s Business Council (NWBC) to talk about women business owners and capital. It was an exploration of the issues as they prepare to give a summit on the topic for women business owners this Fall. Admittedly, I almost didn’t go. For me, home to downtown DC can be anywhere from a 45 minute trip when I drive and there is no traffic (and I make every green light) but is more often an hour to an hour and a half. These days, I have so much going on that I try to cut out any extraneous out-of-the-office excursions but something drew me downtown that day. I didn’t know what to expect but absolutely got more out of it than I had anticipated.
What the group lacked in size (there were only about 5 of us) we made up for with enthusiasm and diversity of perspective. The experiences varied from those of us with fairly low capital needs in the past (I had a line of credit in my first company that I only tapped into two or three times) to the real estate developer whose assets include more than one multi-storied building and borrowing needs well into the millions. Without breaching confidentiality I can only say that it was a heated, animated discussion which, at times, involved more than one 4-letter word, which really
caused me to think: how many women believe or behave as if wealth – or even money – is a four letter word? Does a woman’s relationship with money impact her business approach and, ultimately, goals?
What is it that motivates people to be innovative? While it may not be the primary motivator, most people want to enjoy some benefit from their own ideas. By default, you own what you create, but that doesn’t hang true if you’re an employee. As an employee, everything you create is owned by your employer whether or not you’ve signed an agreement to that effect. So what does this do to your willingness to be innovative?
Part of this may depend on your entrepreneurial tendency and your sense of personal control. As an entrepreneur, I feel a strong sense of ownership of my efforts and ideas. It’s not about money for me, though. It’s about making sure the fruits of my labor and my creative ventures are being put to good use – that they’re helping change lives. It’s about ensuring my ideas and efforts move forward according to my personal mission. I’m curious – does that matter so much for folks who don’t consider themselves entrepreneurial?
For employees for whom the level of purpose described above is also a key motivator, it is your responsibility to align your job choices with your values. Unfortunately that is not always possible given the current job-market challenges, but ultimately, it is a worthy goal.
This past week, it was both my pleasure and my sadness to participate in the graduation of 20
ACTiVATE(R) Class of 2009
incredible women from the ACTiVATE® at UMBC’s Class of 2009. I am sad because we have spent every Monday night of the last year together (OK – we took the summer off!). As with classes before, it’s been a great experience. I felt privileged to witness incredible growth in already strong, accomplished women. Just goes to show – we all have room to grow no matter WHAT stage we’re at!
Dr. Kimberly Brown, ACTiVATE® @ UMBC Class of 2007, did an excellent job at delivering the keynote speech. She talked about what motivates people to make the leap into entrepreneurship – to move from the finite realm of job descriptions to the infinite possibilities entrepreneurship brings. ACTiVATE®, she said, made a difference for her by making the impossible indeed VERY possible. When she joined the program, she was negotiating to buy a business but at a standstill. Some simple advice she received at her interview provided her with the information she needed to move the talks along and purchased a government contract just 2 days into the class. Her company, Amethyst Technologies was born. What started as a 2 person company with 1 client has now grown 20 people with 9 clients, purely through word-of-mouth marketing. Incredible.Getting to know Kimberly through the program and outside of it, I am confident Amethyst is posed for even greater growth and impact under her leadership. Her opportunities are infinite.
“Last year was a tough one for many organizations, with smaller workforces required to do more with less. The new year looks to be more of the same. How can leaders of such organizations motivate their people as they head into 2010?”
Besides this being somewhat pessimistic about what the year holds in store for us, I found it a pretty broad question with varied answers from the team of business executives chosen to respond. The reply that got my attention came from Beth Brooke with Ernst & Young. She’s also a fellow Corporate Ambassador with Vital Voices. Her answer can be best summed up in her own words: “If cost-cutting wrapped up the last decade, this decade should be launched by innovation stimulated by the friction of diversity.”
Once a year for the past 3 years I’ve had the privilege of being on the radio show of Jim Blasingame, The Small Business Advocate. Every time I talk to Jim I have a blast and this morning’s show was no different. Jim has no problem keeping up with my ADD, taking our conversations all over the place but always someplace GOOD. I’m honored that he’s asked me to come back as a regular guest, starting with quarterly in early 2010.
His shows contain a lot of great (free!) content so after listening in to our chat via the link below, check out some of his other interviews! You’re bound to learn a lot…
Following is a guest post provided by Anne Barber and Lynne Waymon. I’ve seen Lynne speak and not only is she engaging and fun, but her advice is immediately actionable and valuable!
Special thanks to Carol Coughlin, CPA and Principal of Bottom Line Growth Strategies, Inc. for this guest post. Great information everyone can use!
Businesses love sharing news about their successes. Not only do they enjoy tooting their organizational horns, but they should share good news. It’s good business to tell customers, stakeholders and the public in general about the great things that are happening.
However, with a large number of businesses now in adverse financial situations, many owners are questioning whether sharing is such a good idea right now. They are asking:
I recently organized a reception to introduce prospective members to the DC-Chapter of the Women Presidents’ Organization. In addition to discussing the awesome organization and the power of peer advising, I wanted to provide some business value at the session. To that end, I invited Gloria Bohan, Founder and CEO of Omega World Travel, to an informal discussion about how innovation helped her grow the business she founded over 34 years ago into its current 800+ employees and over $1B in sales.
Gloria never really set off to start her own business. She became enamored with cruising on her honeymoon. They had been upgraded to a suite on the QE2 and had such a delightful time, Gloria caught the cruising bug. The next cruise she took, however, didn’t include an upgrade to a suite, but she couldn’t help but notice all the upgraded travel agents. She wanted what they had – access to travel opportunities. And that is how the idea for Omega World Travel was born. As she framed it, “Inspiration carries us where we didn’t even know we wanted to go”.
Over the 34+ years that Gloria operated and grew her company, innovation in all forms was at the core of the company’s success. Gloria credits their “gearshift” mentality – flexibility with ability to change directions – as crucial to survival and sustainable growth. They had to continually understand and tap into their clients’ evolving needs. She also saw huge benefits in making everyone in the company think entrepreneurial – a philosophy that we both share.
We were privileged to participate in the launch of the newest ACTiVATE program at Texas State. My former co-instructor here in Maryland, Terry Chase Hazell, is leading up the awesome instructional team there and has done a fantastic job recruiting a sharp group of incredible women to join our ACTiVATE community.
ACTiVATE at Texas State
In the all-day session we led, we focused on helping them get to know each other and build community while exploring their personal goals for starting their own business. In addition to having a lot of fun, we saw some real potential. I have no doubt there will be some great new technology-based businesses coming out of that program.
Last week, I attended a focus group of sorts at the 
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