Why do male entrepreneurs find it easier than their female counterparts to court decision-makers and secure vital funding? Having advised entrepreneurs for many years, I’ve unearthed an unwritten code of business conduct that men instinctively obey but women ignore.
Female entrepreneurs, this is how you can compete with your male peers:
1. Don’t put yourself down
We all do it. But self-deprecation is self-sabotage. Men talk themselves into deals. Women talk themselves out of them. As a successful businesswoman, you have plenty to shout about, so talk yourself up — not down.
2. No one likes a cold call
Never, ever, turn up in front of a venture capitalist (VC) or private equity (PE) house and ask for money without getting someone else to boost your credentials first. That person may be a customer, supplier or professional adviser. And if they have a relationship with the VC or PE house, even better. Men lay the groundwork for one another; so should women …and of course, men can endorse you too!
3. Say “thank you”
These two important words are so easily forgotten. While men can be more forgiving, forget to say them to a female business contact and you won’t get another referral.
4. Support the sisterhood
We all know about the “old boys club,” a mutual support society for men in business. In the same way, female entrepreneurs must boost the sisterhood by making introductions and emphasizing their peers’ credentials to key business contacts.
5. Resign from the “but” club
“But” is one of the most damaging words in the English language. Once you’ve said it, all that anyone remembers is what came after it. Don’t say: “She would have a great business, but …”. “She’s building a great business” is just fine.
6. Know your numbers
Nothing destroys your credibility like not knowing your numbers. Expect to be grilled on every aspect of your accounts, cash flow forecasts and future projections. You also need to know everything — and I mean everything — that there is to know about your competitors. Think like a secret agent.
7. Answer the question
Think facts, not feelings. Don’t get distracted or wander off the topic. Women have broad thought processes, and while there is a time and a place for exploratory meetings, know when to stick to the here and now.
Female entrepreneurs now own or operate around 30% of private businesses. At EY, we believe they could be even more powerful if they worked together. So we founded the Global Women in Business Advisory Council — the ultimate “new girls club” — where members help and support one another to become the fantastic entrepreneurs we know they can be.
We have also produced a report titled It’s who you know: women entrepreneurs and the impact of networks. This should be on the recommended reading list for all female entrepreneurs who want to “go big.” Good luck with your business — and with cracking the code of business conduct.
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The Principle of Least Interest: He who cares least about a relationship, controls it.
