A recent study from Jane Out of the Box, an authority on female entrepreneurs, reveals there are five distinct types of women in business. Based on professional market research of more than 3,500 women in business, this study shows that each type of business owner has a unique approach to running a business and therefore each one has a unique combination of needs. When a woman is living as her ideal entrepreneurial type, she feels satisfied, personally and professionally. This article outlines six ideas for jumpstarting cash flow following a business setback.

Most women business owners who have experienced a setback are living a Tenacity Jane phase. Tenacity Jane is an entrepreneur with an undeniable passion for her business, and one who tends to be struggling with cash flow. As a result, she’s working longer hours, and making less money than she’d like. Nevertheless, Tenacity Jane is bound and determined to make her business a success. At 31% of women in business, Tenacity Janes make up the largest group of female entrepreneurs. Typically, a woman business owner becomes a Tenacity Jane for one of five reasons: she has a craft or skill, but lacks business knowledge, the business started undercapitalized or acquired more debt than can be comfortably carried at current revenue levels, she doesn’t charge enough for her services, she lacks focus and is trying to accomplish too much all at once, or something has changed in the industry or cost structure that has caused a once-prosperous business to falter financially.

To move forward from a Tenacity Jane phase, a woman business owner must:

1. Invest in her own knowledge. New knowledge can be the key to jumpstarting profitability. Even if she is an expert in her craft, she may not have the knowledge she needs to run a successful business. Odds are, she recognizes where she can improve her knowledge for the betterment of her business. An entrepreneur can create her own training plan or she can hire someone with expertise to fill in the gaps. Whether she reads books, buys home study courses or attends live classes, an entrepreneur who builds her knowledge base dramatically increases her chances of boosting her profit. Some areas where she may need new knowledge: marketing (specifically, email marketing, social networking as a marketing tool, etc.), financial management, team building and delegation, and project and time management.
2. Identify her target market and its needs, and then market accordingly. By surveying her existing customers, a female entrepreneur can get an inexpensive and very accurate picture of which of her products and services are most in-demand, and of the profiles of the people who are using them the most. Then, she can market to similar people, thus increasing her chances of attracting ideal clients who need (and will pay for) her services.
3. Evaluate her pricing and raise it, if possible. Whether she “started low” to win business and never raised her rates, or she over-estimated her profit margin, it never hurts for an entrepreneur to evaluate how her pricing compares with that of other similar professionals in her area. She can send surveys to existing customers, asking them about industry pricing, and call competitors and ask for a price sheet. Also, by evaluating her costs and margin, she can determine whether she could increase her margin slightly and therefore increase her profits. When considering hourly rates, a female business owner should remember to include the cost of taking time off for vacation, and the time she spends working non-billable hours marketing, paying bills, etc. She should consider what each project or unit is worth to her – and create a guideline for herself about how much she has to charge to feel properly compensated.
4. Network. By networking with other like-minded professionals, a woman business owner creates opportunities for a support system in which she can share ideas and information, and for getting word of mouth referrals. Also, networking provides chances for affiliate relationships, in which two professionals who offer related services market their products together.
5. Upsell. Business owners can drive profit fairly easily with a little extra work through consistent upselling. In this sales approach, every time someone buys from the entrepreneur, she offers them a chance to pay just a little bit more for an expanded service or an augmented product. For example, if she sells a necklace, she upsells to include a fancy jewelry box. If she sells an information product, she upsells to a continuity product such as a newsletter.
6. Communicate regularly with information and offers. Every business owner probably has a list of prospects and current customers. A female entrepreneur must recognize that the more frequently she communicates with her prospects and customers, the more frequently she’ll be on their minds – increasing the likelihood that they’ll buy from her! Business owners can employ (almost) effortless marketing methods for communicating regularly, such as social networking, blogging and newsletters.

It is common for a business owner to experience a setback within her company. Fortunately, by following specific steps and guidelines, and by using the six cash flow jumpstart strategies listed above, a female entrepreneur can overcome her setbacks and be on her way to living her ideal entrepreneurial type and enjoying her successes.

Interested in learning more about the five Jane types and which Jane you are? Check out www.janeoutofthebox.com.

Because Merry Jane has such a unique approach to business, she presents a number of lessons of interest to anyone considering starting a business in their spare time.

Lesson #2

Do more with less using systems and leverage.

When you want to grow a business without pouring in tons of hours, your best bets are to put systems in place. Each system you have will save you time because you don’t have to reinvent the wheel. And, when you document your systems, it’s even easier to bring other people on board to leverage your time because it’s very clear to them what they need to do.

Merry Jane is very focused on fitting her business into an allotted amount of hours – so she’s smart about using systems (whether her own or someone else’s) wherever she can. Take a page out of her book and start creating a systems manual, complete with checklists as you have time. This will help you streamline your time and put you in the best position to help employees and contractors be successful in achieving the goals you set for them.

<– Read Part 1 ………… Stay Tuned Tomorrow for Part 3 of 3 Important Lessons from Merry Jane

This article focuses on a type of business owner known as Merry Jane, an entrepreneur who has created a business she enjoys and that meets her needs for time freedom. Consequently, she tends to be able to take time off on a regular basis-whether it’s to enjoy friends and family, her career/employment, or other passions and interests she may have. Merry Jane also typically has some other source of income (whether from her own employment, her spouse’s employment, or retirement/savings income), so she does not feel the extreme stress some other entrepreneurs encounter related to profitability. Though her business is not generating a large amount of income at the moment, Merry Jane is happy with the balance and freedom she’s created in her life. According to the study, roughly 19% of women business owners fit the Merry Jane type.

Because Merry Jane has such a unique approach to business, she presents a number of lessons of interest to anyone considering starting a business in their spare time.

Lesson #1

Business can bring you happiness without taking over your life.

Merry Jane is an entrepreneur who loves what she’s doing and she knows that money will eventually follow. She may be creating a business to bring a particular talent (she may be a great jewelry-maker or a wonderful coach) or a product or service she truly believes in (such as many people who’ve had transformative experiences with products that have changed their lives and then they start businesses to promote those products) into the world. But whatever her business sells, Merry Jane knows that the world is a better place when she shares her gift or message … and she believes that eventually the money will come, though it is not her biggest focus at the moment.

As a result, she takes her greatest reward in terms of personal satisfaction and is glad for the chance to make a contribution in the time she’s allotted to working on her business – without it taking over her life. By combining love for her work with a structure that helps her do the other things she needs to do in life, she’s happily moving forward in her business.

Stay Tuned Tomorrow for lesson #2 from Merry Jane…

New study shows female entrepreneurs fall primarily into one of five categories Tampa, FL (August 28, 2008) – A two year study, commissioned by Jane Out of the Box, a research-based online resource community for female entrepreneurs, shows that all women business owners, though highly dynamic individuals, can be categorized as one of five types. The distinction between the categories, says the study, is based on women’s choices in balancing personal and professional needs.

As a result of the study findings, Jane Out of the Box also provides information on how women who are dissatisfied with their “type” can take relevant steps to move their business and lifestyle to a position that better aligns with their goals. Women who are satisfied with their type will also be given advice on how to reap even greater rewards from their businesses.

Additional information, as well as a free, evaluation/classification assessment, can be found at www.JaneOutoftheBox.com, then log in and click on Which Jane Are You?

The first type listed in the study, referred to as Jane Dough, enjoys running her business and is comfortable and determined in marketing and selling. She may be working longer hours, but she doesn’t mind because she enjoys the enterprise so much. Her focus on growth is why she is five times as likely as the average woman entrepreneur to hit the million-dollar revenue mark with her company. She is clear in her priorities and may be intentionally and actively growing an asset-based or legacy business that she can later sell or pass on to her children. It is estimated that 18 percent of women are Jane Doughs.

Go Jane Go, is the second Jane type. She is a successful female entrepreneur who has grown her business to the point that she may now struggle to get time away from her work for vacations or to take care of herself. She feels confident and organized and has put systems in place to get her work done, however she may have difficulty saying no to clients and/or volunteer opportunities. She is four times more likely to hit the million-dollar mark than the average female entrepreneur. On average, Go Jane Go types also have the highest personal income drawn from their businesses, though she has the least amount of personal time. Go Jane Go types are the least common, weighing in at 14 percent.

The third type of female entrepreneur, Tenacity Jane, may be struggling with cash flow concerns, but her passion is undeniable. She’s likely to be feeling stressed and may also feel overwhelmed and worried, specifically when it comes to business finances and cash flow. She may have a dissatisfactory balance between her professional and personal life, but is determined to make her business a success and refuses to give up. The study showed that 31 percent of women business owners are Tenacity Janes.

Merry Jane, is the fourth “Jane” type. She has created a business that meets her needs for time freedom. She has time to take care of herself and can take time off when she wants to. She is typically working 40 or fewer hours per week and does not feel extreme stress. Though she generally has a lower income than the other “Janes,” she is happy with the balance she’s created in her life. According to the study, roughly 19 percent of women business owners are Merry Janes.

The final “Jane” identified in the study, Accidental Jane, is a successful, confident business owner who makes a good income. She most likely did not intend to start a business, but had an area of expertise that lent itself to a business idea. She has created her own ideal job through her business, which she may have started due to dissatisfaction with her previous employment or following a layoff. While at work, she may have some difficulty prioritizing what she needs to do, but she readily leaves work “at the office” when she’s done for the day, so she’s not stressed as a matter of course. She likely has no big plans to aggressively grow her business and is simply enjoying the work as it comes. About 18 percent of women business owners are Accidental Janes.

“US Census statistics show that only three percent of woman-owned businesses make it to the $1 million mark,” says Michele DeKinder-Smith, founder and CEO of Jane Out of the Box. “This research should help female entrepreneurs everywhere identify their own type, and determine whether or not the businesses they have built fall in line with their personal priorities and values. Women of all five types may find themselves wishing to be more like a woman in another group. We believe, based on our research, that if this is the case, it is possible to follow a specific plan to change the group you’re in.”

Jane Out of the Box is an online, research-based resource community serving the needs of female entrepreneurs. Jane Out of the Box offers tools, research, resources and networking opportunities to members. Additionally, Jane Out of the Box provides training and marketing consulting services to Fortune 500 companies, non-profit organizations and government organizations looking to meet the demands of women entrepreneurs.

Take the free assessment now and discover which Jane you are. Then, come back and post your thoughts here!

Over the course of the past year, I’ve had an opportunity to meet many wonderful women business owners.  The purpose of this blog is to share some of their stories, to discuss findings from the research we’re doing to help women business owners, and to share news, tips, and information that can can help us all be more successful – in business and in our lives through entrepreneurism. 

As I write today, one of the things that’s on my mind is why we all start businesses.  In our research, we’ve seen a few dominant reasons:  wanting to be in control of your own future and the specific desire to own a business.  In addition, though, we’ve heard women in particular talk about the importance of time freedom and being able to manage how and when and where they work.

I know when I started my first business, it was really about being able to control my own future and choose who I wanted to work with.  I was very fortunate that my husband was a full-time dad and took care of so many of the things that ”mom” is usually responsible for.  That meant we had lots of free time together because our weekends weren’t spent “catching up” on all the small and large things required to have a happy, healthy family.

As that consulting business grew, however, time freedom became increasingly important to me.  So much so, that over the past two years, I’ve learned how to build a virtual team so that the businesses can accomplish a lot and I still can take the time for school events, family vacations, and Friday night dates with my husband.

What about you?   What are the reasons you started your business?  And how important is time freedom to you?  

– Michele DeKinder-Smith, Founder, Jane Out of the Box