Why Female Entrepreneurs Should Invest More

Women invest 40% less than men do.

Women invest less not just because they earn 20% less than men but because they are more risk-averse and worry about getting it wrong and losing it all. At the same time, too many believe that online business is somehow a cheaper version of business. But business is business and investing is a vital part of business success.

Investing comes in many shapes and forms. You can invest by saving to make sure you have a retirement fund. You can also invest in yourself while you are still working to increase your chances of earning more which again helps with retirement because more earnings will help you have a bigger impact.?

Entrepreneurship is all about investing forward. You invest time and money upfront in the hope that you will have a return. If you don’t invest time or money there isn’t going to be a return and then you don’t have a business. Typically you invest more time and less money in the beginning and as you grow and you get busier, you invest more money and less time into growing your business.

When I started my business I thought I could do it all on my own and wasn’t willing to invest. I had already bought two 8-week online courses and thought that was all I needed. After months of trying to do it on my own, I realised I needed to invest forward. It was a hard realisation because I had been a CEO for 10 years and had an MBA. Also, my husband didn’t understand why I needed help. I had already started other people’s businesses, why couldn’t I start my own? I felt a bit embarrassed to admit that I needed outside help.?

When I finally decided to invest forward, the wheels started turning and my business took off. I realised that investing isn't just about giving someone else my money and getting something in return. Investing is about me, that I am worth investing in. When I invested the first $5000 into myself, I felt a rush of excitement and a strong commitment. I suddenly took myself and my business more seriously. Within days I made $1500 back and within weeks I had made the $5000 back. A few months later I had 10x-ed my return. Could I have made it without investing in myself? The answer is a clear no.

So what type of investments should you make as an entrepreneur?

Invest in education

There is free information everywhere on how to build your business but until you are 100% committed to yourself and invest in your education all the information out there is worthless to you. When you invest in education you are not just investing in the content but also in the community and even more importantly in a process that gets you faster results.

Invest in tools

There are a lot of free tools out there and it is great to start with free tools when you are starting out. Sooner or later you’ll need to invest in tools that work for your business and ideally, tools that a lot of other people are using, don’t save the pennies and throw away the dollars for tools that only a few people are using. Assess your tools every year and upgrade your tools in a timely manner so that they don’t hinder your growth. Using tools that are not right for the stage of your business can cost you a lot more money than switching to better tools more fit for your stage of business.

Invest in masterminds

Education is important when you are just starting out but when you’ve started to make money you should make it an absolute investment priority to be part of a mastermind. A mastermind is about surrounding yourself with people who can help propel your business growth in a way that you can never achieve on your own. Every year make sure you are in the right room, with the right people, having the right discussions.

Invest in a team

Nobody grows a business alone. You can stay a solo entrepreneur but the sooner you invest in a team, the faster and easier your business will grow. Having a team that complements your skills will allow you to step into your zone of genius and do your best work - the work you were meant to do.

Invest in paid advertising

There are two ways to reach more people who might be your ideal client; organic and paid. Organic methods cost time and paid methods cost money. If you have a lot of time you should definitely work on your organic reach, if you don’t have a lot of time then you need to make up for it with money. It’s best to mix them both to get the most out of your marketing. Most entrepreneurs wait too long to start paid ads and think they can do without. My business didn’t really start to grow until I made real investments in paid advertising.

Before you invest, do your due diligence. Spend time checking out whatever you are investing in.?

When you are investing in an educational program or a mastermind, make sure that the coach or facilitator has actually run a business before. It is up to you to check out their references, their CV on LinkedIn, verify the testimonials of their clients and check if you like their approach. Get referrals and recommendations from people you respect and trust.

When you are investing in tools, make sure that many other entrepreneurs are using these tools. You don’t want to be the only one using a new tool that nobody knows and nobody can help you with. Check out the company that sells the tool and look into the quality of their customer service. I used to run a software company myself and I can tell you that no tool is perfect but if the customer service is excellent, it will make up for the lack of perfection in a tool. Ask your entrepreneur friends about the tool and go through testimonials of existing clients. Also, sign up for a trial to see if you really like the tool. Most software companies offer a trial before you buy.

When you are investing in a team, first ask for referrals but if no one knows anyone you can hire then you need to advertise for a team member. In the job ad, you can make it super clear whom you are looking for by highlighting the type of personality you need on your team. Hiring for attitude is way more important than hiring for skills. You can test both attitude and skills before you hire anyone by putting a test in your application process and giving small assignments before you sign the contract. And in the contract itself, you can have a 30-90 day test period before you make a bigger commitment.?

When you are investing in paid advertising, you should start small. Don’t throw your money into ads and expect a return. Ads are in many ways unpredictable and you have to start slow before you speed up. Learn how to run ads and do a lot of testing. I repeat, do a lot of testing. Give yourself (or your team) time to test the ads you want to run. Once you understand how ads work and what works for you and your audience you can increase your investment.

Investing is like a muscle, the more often you invest, the easier it gets. Ideally, every investment yields a return. Some investments will not pay off. That’s just part of life and business. However, if you inform yourself, get the right information and check on vital components, most investments should result in a good ROI (return on investment).?

If you’re in an online business and are ready to step out of your comfort zone, I can help. Send me a private message by letting me know your revenue goal for 2022 and I’ll let you know how I can help you get there.

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