The good news?
Women are launching businesses in record numbers.
More than ever before, women are declaring, “I want to be my own boss.”
The bad news?
Women are launching tons of businesses – but not exactly making tons of money.
Out of all the women-owned businesses in the US:
6% earn $100,000 - $250,000 per year in revenue.
3% earn $250,000 - $500,000 per year in revenue.
Only 2% reach $500,000 - $1,000,000 per year in revenue.
The vast majority of women-owned businesses – 89% – bring in less than $100,000 in annual revenue.
(And remember: revenue is not the same as your personal paycheck. Not when you’re a business owner.)
So, why is this happening?
Over the last 10 years, we’ve analyzed data from the IRS, the US Census, the Amex State of Women-Owned Businesses Report, and statements from more than 4,000 clients.
We’ve found that one major reason why women business owners get stuck at the threshold of 6 figures is that they’re reluctant to hire new team members and expand their business.
In fact, 90% of women-owned businesses have no employees other than the business owner, according to the US Chamber of Commerce Foundation - Center for Women in Business.
When you’re running a solopreneur operation all by yourself, you can grow – to a point – but you’re inevitably going to hit a ceiling.
There are only so many hours in the day. Only so many clients you can serve alone. Only so many products you can create and ship out by yourself. And only ONE YOU!
At a certain point, you max out. Your revenue stalls.
You probably need to hire an employee.
This is especially true if you're making $50k or more annually in your business. (And if you’re making less than that right now, bookmark this post for when you do hit the $50k mark.)
Now, you might be thinking…
“Can’t I just hire a few freelancers instead of hiring full-time employees? I don’t feel like I can afford to hire someone full-time right now.”
If you feel nervous about hiring, you can start small — just know that your ultimate goal should be hiring full-time employees.
Here’s the progression I recommend:
1. Hire a Part-time Assistant
Pay your new assistant $25 to $45 an hour and start with 5 hours per week.
Take all the piddly tasks that clog up your time and assign those tasks to this fabulous new person.
Your new assistant can proofread documents, schedule appointments, follow up with potential clients, and do a million other things for you.
They’ll free up tons of time for you. Then, use this newfound time to come up with revenue-generating ideas. Get more money flowing through the door, and then…
2. Offer Your Part-time Assistant a Full-time Job
Hooray! Your first official employee.
If this person could transform your life in 5 hours per week, imagine what they can do in 30 or 40 hours.
3. Duplicate Yourself
Next, it’s time to hire your second full-time employee — only this time it’s someone who can do what you do.
If you’re an attorney, hire another attorney. If you’re a chef, hire another chef. Train this person in your methodology.
Now, instead of turning clients/customers away (“Sorry, we’re fully booked”) you can joyfully take all that business.
From there, the hiring process is different for each CEO. Your next hire might be a Project Manager, a Marketing Director, another duplicate of yourself, or something else. It depends on your business.
But, one thing is certain:
The sooner you hire someone, the sooner you’re going to start generating more revenue – and crack the $100k ceiling, and then $250k, and $500k, and upward from there.
To expand your earnings, you need to expand your team – which might mean expanding your mindset and courage, too.
P.S. You’ve hit a revenue wall and can’t figure out how to earn more? Join We Should All Be Millionaires: The Club. Let us teach you how to maximize your earning potential, no matter what kind of business you run.
P.P.S. We have a special Mastermind program inside The Club for business owners making $500k and up in annual revenue. The Mastermind gives you all the best that The Club has to offer — coaching, community, education — but with a more intensive experience.
You get one-on-one coaching, networking with business owners at your revenue level, luxe in-person retreats, and so much more. Get more details here if you’re making between $500k and $999k annually, and here if you’re making $1 million and up annually.