4 mistakes female entrepreneurs make more often than men

4 mistakes female entrepreneurs make mora often than men4 mistakes female entrepreneurs make more often than menIf youre a female entrepreneur, congratulations youre doing an incredible job. If you need evidence to remind you, weve got that for you, too.According to the report, The State of Women-Owned Businesses, as of 2017, 11.6 million, or 39 percent of total geschftliches miteinanderes in America, are owned by women. Even more impressively, between 1997-2017, the number of women-owned geschftlicher umganges increased by 114 percent, compared to a 44 percent increase among all businesses- a growth rate of more than 2.5 times the national average. Female-owned businesses employ nearly 9 million people and generate approximately $1.7 trillion in revenues.Despite the above statistics representing remarkable progress, women-owned businesses account for only 4 percent of the national business revenue generated. Despite the rapid increase in the number of businesses opened by women, thi s statistic has remained unchanged for the last 20 years.The disproportionate amount of revenue generated by female-owned businesses can be attributed to their smaller sizes and slower growth rates in comparison to male-owned businesses. So, although it mightve seemed like female-owned businesses were on the right track to take over the world, there is still some work to do.In order to help female-owned businesses prosper, weve identified four of the most common gender-specific obstacles that stop female entrepreneurs from reaching their fullest potentialand most importantly how to overcome them.Mistake 1 Fearing failure avoiding risksIf youre an entrepreneur, youre likely referred to as a risk-taker by your friends and family. After all, quitting your 9-to-5 job to start your own business isnt for the faint of heart. It requires you to accept substantial risks associated with your personal reputation, finances, and career trajectory.However, as a female entrepreneur, youre often p erceived as having a lower risk tolerance and higher fear of failure than your male counterparts. Regardless of how you perceive your own risk tolerance, this point of view may have adverse effects on the success of your business.According to a study by the Journal of Entrepreneurship Organization Management, banks and other investors use a scale to assess the risk tolerance of entrepreneurs when considering investment in their venture. The scale takes into account the four facets of risk including financial, physical, social, and ethical. Female entrepreneurs tend to score lower on the risk-taking scale than men, especially with regard to financial risk.Unfortunately, this contributes to female entrepreneurs receiving kenntniserlangunging less often, as well as lower levels of funding, than male entrepreneurs. Female entrepreneurs are significantly less likely than males to receive equity from investors, with only 11 percent of women using equity raised from investors to fund thei r business ventures.You might be thinking, isnt this counter-intuitive- wouldnt investors and banks prefer to lend funds to low-risk clients? Not quite. In an investors eyes, risk aversion often translates to stagnated growth, lack of competitive drive, and yperit opportunities in the marketplace.Risky BusinessThroughout your career as an entrepreneur, youll have to become comfortable with the possibility of failure and taking risks. Although this may be uncomfortable for some, its necessary to obtain funding and grow your business.However, this doesnt mean that you should head to the casino and bet the patent design for your latest product on the roulette wheel. Instead, focus on adding calculated risk and a risk management plan to your business model.Take Calculated RisksTaking a calculated risk involves estimating the Return on Investment (ROI) and understanding the various possible outcomes before taking the risk. Although a calculated risk still requires a degree of uncertainty , youve done your research and can predict and prepare for the outcomes. Conducting extensive market research before launching a new product line is a great example of how to take a calculated risk.Risk Management PlanningBefore taking a new business risk, create a risk management plan to identify, evaluate, and prioritize the risks in your business plan. This will allow you to minimize the level of uncertainty and react quickly to the various circumstance which may arise.Mistake 2 Being bothered by being the only woman in the roomAs a female entrepreneur, youll likely end up in a situation where you are the only woman in the room. Whether its at a networking event, an investment pitch, or a bank meeting, its bound to happen at least once during your career. Lynn Perkins, the founder of UrbanSitter, said that she often found herself pitching her product not only to a room filled only with men, but to men whod never looked for a babysitter because their wives always took care of chil d care needs.Although this isnt the way it should be, women are unfortunately still underrepresented in just about every level (and most industries) in corporate America.Regardless of your confidence level, It can be intimidating to be the only woman in the room. It may cause you to doubt the validity of your attendance, your ability to relate to others, or even fear discrimination.Dont Let Being the Odd (Wo)man Out Stop YouAlthough its natural to feel uncomfortable, dont let being the only woman discourage you from representing yourself and your business. Use your presence as an opportunity to advocate for female entrepreneurs and instigate change in the industry.If your business offering is female-focused, design different versions of your pitch that are tailored to multiple audiences. According to Terri Mead, managing partner at Class Bravo Ventures, male investors often struggle with relating to what a lot of female founders are pitching and may not make the effort to really und erstand the problem and the solution to see the opportunity.If youre attending an event, bring the disproportionate guest attendance to the event managers attention. Suggest relevant female-focused organizations that they can invite to the next event and/or ask if you can bring friends.Mistake 3 Trusting too quicklyAs an entrepreneur, you never shy away from discussing a new opportunity. Its easy for you to meet a like-minded individual at a networking event and have a new business partner before youre finished your first glass of wine.As a female entrepreneur, youre often considered to have a higher level of trust and empathy than your male counterparts. According to Women, Trust and the Business World, women approach relationships in a SMARTnership manner in which they collaborate with their counterparts to gather information, offer insight on the situation, and work cooperatively towards desirable outcomesboth short-term and into the future.Although this sounds like a healthy way to conduct business, its unfortunately not the reality of how commerce is conducted in corporate America. This means that female entrepreneurs bear the brunt of poor business negotiations and partnerships more often than male entrepreneurs.Prioritize Protecting YourselfThis doesnt mean that you need to adopt an every woman for herself mentality, but it does mean that you should take precautionary measures to protect yourself and your business.Legal ProtectionThe most effective means of protecting yourself in a business negotiation is legal protection. A legal document allows you to record the terms of your agreement and hold the signing parties legally accountable in the future.So, before you enter into a partnership with the charismatic individuals from the networking event, ask them to sign a Non-Disclosure Agreement (NDA). Their signature on this document could be the difference between you ending up as Mark Zuckerberg or the Winklevoss twins.Dont Take Chances with Your Finances As a new business owner, youll likely find yourself inundated with requests for favors from family, friends, and even some customers. Although youre probably happy to offer your best friends mom a modest discount, make sure to exercise caution when it comes to favors involving payment.A common favor that might be asked of you is to accept personal credit or pay layaway instead of payment at purchase. Accepting deferred payments places the risk of receiving late payments, or never receiving payment at all, onto your business and personal finances.Katherine Brown, Founder of Kaphmada Design, lists the biggest mistake of her early career as not requiring payment at purchase. According to Brown, a handful of my customers wanted to purchase custom-made apparel on credit and asked to pay layaway. They never paid me back. Some just tried to befriend me just to get something made free. I shouldnt have agreed to those terms. Now all our clients are required to leave a deposit for custom piec es or pay in full. Lesson learned.An easy way to protect your businesss finances is to require credit on especially large orders. Doing so will help you mitigate the risks associated with layaway and installment payments by instantly processing the full value of the transaction. Plus, youll add an extra layer of protection against fraud with the insurance provided by credit cards and banks.According to Kelly Yen, Business Operations Analyst at PayMotile, one of the most commonly cited reasons for business owners to adopt credit card and other types of payment processing is lost profits incurred from accepting personal credit payments on past business transactions. Yen states, almost every business owner has a story about a customer who they knew for years, yet never paid them back for a product or service.Mistake 4 Comparing yourself to othersComparing yourself to others is a natural human phenomenon- everyone does it, I promise.With social media permeating just about every area of life, its easier than ever to compare yourself to others. Unfortunately, as you already know, comparing yourself to others often has a negative impact on your self-image. According to the Social Comparison Theory, women are more likely than men to engage in upward social comparisons which leads to negative feelings about the self.As a female entrepreneur, comparing yourself to others will have a negative impact on your business in two ways. First, itll limit your ability to form and maintain relationships with others. Second, itll weaken your self-confidence, self-efficacy, and self-image, which in turn will affect your ability to manage your business operations to the best of your ability.So, what do you do when you open your email to find your name has been left off of this years Top 20 Female Entrepreneurs to Watch list?Dont worry, with the right mindset, comparisons can be used to produce positive results in your life and business.The Power of Positive ComparisonsInstead of focu sing on the negative, compare yourself to others with the purpose of fostering self-motivation, self-improvement, and a positive self-image.To start, learn what media makes you feel negative about yourself (for many of us itll likely be scrolling through our social media accounts). Next, stop engaging with it or learn how to spread positivity through social media. For example, if you always feel bad about yourself after scrolling through Instagram, change who you are following. Replace the socialites, negative memes, and high-cost brands with genuine and inspiring individuals, brands, and influencers.Take it a step further, and make a list of individuals who you admire and aspire to be like. Determine which qualities they possess that you covet such as kindness, generosity, and honesty. Next, actively practice incorporating these qualities into your daily routine and personal character.In order for female entrepreneurs to continue to prosper, we need to work together.Rather than fee ling jealous of others success, try celebrating and empowering them. As much as receiving a Congratulations card will make their day, youll also be surprised how much contributing to others will benefit your own mental health.So, congratulations to all of you female entrepreneurs out there- we cant wait to see what you accomplish nextThisarticle first appeared on Career Contessa.