There are businesswomen who achieve success, and then there are those who surpass $5 million in annual sales. Here are their proven strategies.
When Stephanie Kaplan Lewis started her media company a decade ago, she committed to a method many startups overlook: gradual growth through bootstrapping.
This unconventional choice paid off, as her venture has flourished. Today, the company stands strong, serving college women, and has relied primarily on its own resources, aside from a $50,000 grant. It has consistently generated profit each year since its founding.
“Many face pressure to quickly secure funding,” explained Kaplan Lewis, co-founder and CEO. “We took a more measured approach.”
Kaplan Lewis is part of a growing network of women entrepreneurs who have successfully scaled their businesses past the $5 million revenue threshold. This achievement can be daunting for any startup, especially for women. She was also featured in a study by Bank of America and Babson College, which interviewed 30 outstanding female entrepreneurs as part of their Beyond the Bucks report. These interviews aimed to uncover what contributes to their success in a challenging landscape.
1. They avoid outside funding
There’s no doubt that startups often feel the urgency to raise capital quickly. However, this pressure can lead to missteps as they prioritize rapid growth over sustainability. While successful companies like Amazon and Lyft thrive under different circumstances, most startups can’t afford to operate at a loss indefinitely.
For many businesses that endure beyond their initial years, bootstrapping becomes a key strategy. Instead of relying on external investors who might impose their vision, they utilize personal funds, loans from family and friends, or bank credit. For many women entrepreneurs, this approach is often less of a choice. Despite significant achievements, they struggle to attract investment from private equity and venture capital. In fact, of the $130 billion invested in startups in 2018, only 2.2% went to women-owned businesses.
“Many women find it hard to acquire external funding or choose not to pursue it, enabling them to grow at their own pace,” shared Karen Reynolds Sharkey, Business Owner Executive at Bank of America Private Bank. “This independence allows them to maintain their vision and develop their companies on their own terms.”
Kaplan Lewis attributes part of her success to keeping outside investors at bay. This independence prevented unwanted pressures to shift the business's direction and encouraged them to manage their finances judiciously. “Bootstrapping helped us focus on what really matters. When funds are limited, you prioritize wisely,” she said.
2. Grit and determination are essential
Women entrepreneurs face numerous challenges beyond fundraising. Persistent stereotypes and biases can hinder their growth. “As a mother of four running a baby product business, I thought my experience lent me credibility,” remarked Raegan Moya-Jones, co-founder and former CEO of Aden & Anais. “But often, I found that others didn’t take me seriously, despite my dedication and efforts to build a successful business that now generates over $100 million annually.”
Moya-Jones credits her success to two vital traits: determination and grit. These qualities were echoed by all the women surveyed. They recognize the presence of gender bias but refuse to let it deter them. Dr. Lakshmi Balachandra, an entrepreneurship professor at Babson College, noted that these women had a clear vision and were fearless in pursuing their goals.
3. They prioritize compassion in leadership
Successful female entrepreneurs understand that a company thrives on the strength of its employees. Their ability to grow is closely tied to how they nurture their teams. They emphasize equality among staff and foster a collaborative work environment, striving to create workplaces they would want to join themselves.
This commitment is reflected in the benefits they provide. These enterprising women are willing to invest significantly upfront to offer attractive benefits that help recruit and retain top talent. “They consider parental leave and strive to create a supportive culture,” noted Sharkey. “They genuinely view employees as family.”
Many of these entrepreneurs recognize that investing in their workforce might limit short-term profits, but they see it as essential for long-term sustainability and success.
4. They build their own networks
Networking is a vital tool for business growth. Yet, for many female entrepreneurs, networking can be challenging. They may not be excluded from networking events, but they often find themselves isolated among a sea of men. This can lead them to seek connections with other women, inadvertently narrowing their networking opportunities.
To counter this, successful women entrepreneurs cultivate relationships with other women both within and outside their industries. They actively join or establish networking groups when none exist. By supporting one another, maintaining their vision, exploring alternative funding options, and demonstrating determination, these women create a template for success. They recognize the odds stacked against them but continue to thrive. “Despite facing various obstacles, they adapt and push forward, leading to remarkable growth in their businesses and teams,” Sharkey stated.
