5 Mistakes Women Entrepreneurs Make

What common mistakes do women entrepreneurs make, and how I can I avoid them? This is a question our bankers often hear from both new business owners and seasoned entrepreneurs.

"We can all learn from our mistakes and from the mistakes of others," says Christy Schmitt, Union Bank senior vice president and small business banking executive. "Many of our most successful business clients failed at their first venture and persevered to build strong companies."

Following are a few common mistakes women entrepreneurs make:

1. Hiring too quickly, firing too slowly. Staffing can be one of the most difficult and time-consuming aspects of running a successful business. Because making key hires can affect your entire business, many women agonize over whether they’re making the right decision, sometimes losing opportunities to hire qualified people. On the other hand, if you know you need to let someone go, don’t procrastinate. If you don’t have someone trained in human resource management on staff, work with a consultant or attorney who specializes in employee relations to ensure that you adhere to your state’s legal parameters. While firing an employee is a difficult decision, you need to do what’s best for your business.
2. Failing to delegate. As women, we sometimes try to do it all, at home and at work. But successful business owners know that a strong leader is surrounded by an even stronger team. Train your employees efficiently and utilize their skills. Identify a strong team manager or second-in-command so you can manage your time wisely. Reconsider whether you need to attend every meeting or review every memo and e-mail. Trust your team.
3. Not developing a relationship with a banker. Given the challenges of today’s competitive business market, it’s important to have a solid relationship with your banker. Don’t wait until there’s a problem with your business to reach out to a banker. Do it now to prepare for the future. If your banker isn’t calling you, contact him or her; trust your banker, and discuss your specific business needs and goals.
4. Not looking into supplier diversity programs. Many major corporations and the government have special programs for woman-owned, minority-owned and service-disabled, veteran-owned businesses. Some banks, including Union Bank, also offer financing programs that provide flexible underwriting on loans and lines of credit specifically for these businesses. Work with your banker to determine what options might be available for you and your business.
5. Not being certified. "This is probably the easiest mistake to avoid," says Frank Robinson, Union Bank’s vice president of diverse banking. "Certification as a Women’s  Business Enterprise and/or Minority Business Enterprise can open doors to government or large corporation contracts." If your company is privately held and at least 51 percent owned by a woman or minority who is a U.S. citizen or legal resident, you can apply for WBE or MBE certification. Talk to your banker and obtain this certification today if you qualify.

The foregoing article is intended to provide general information about selecting and working with a banker and is not considered financial advice from Union Bank. Please consult your financial advisor.
Martha Pineda is a priority banking manager for Union Bank in Tustin, Calif. For more information about Union Bank Priority Banking, visit www.unionbank.com/priority.