Rethinking How Women Build Businesses

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Maybe two years after they launch they might do a plan when they want to raise money and grow.

Colligan: We talk about taking small manageable steps. We had one [incubator member] who wanted to start an upscale Hispanic network, and she was working on a business plan for years trying to get this done in a huge way. Her incubator told her to plan a party or event to get women together that was manageable and didn't require huge capital. The event sold out, and led to something else and now she has an amazing organization. Had she tried to figure the entire thing out from the beginning, she never would have started.

What would you say are the essential things to know when starting your own venture?

Schoenfeldt: Start something you love doing. Being an entrepreneur is hard and starting a business is hard work—we don't try to sugarcoat that—so if you love it you are more likely to be a success.

Also, surround yourself with people who are launching a business. This allows you to be more successful. And the third thing is to just start doing something and move in a direction. Don't feel that you have to give it all up and leave your job. With technology today, you can get started with very little capital investment and try it out before you jump all the way in.

Is this philosophy solely for women, or can men benefit from following the Ladies Who Launch process?

Schoenfeldt: I think men can benefit. We call it the feminine approach but we feel many men do follow this nontraditional approach. Our book is about living your dream and focusing on that—and a lot of men do—who wouldn't want that?

Colligan: We are also redefining success. We see this as living the lifestyle you want to live. We ask women to consider what their dream day looks like. Are you integrating your lifestyle elements into your life along with your business?

Do you see inherent differences between female and male entrepreneurs?

Colligan: We surveyed over 1,000 women compared with men launching businesses and we found by and large women who launch consider themselves more deeply fulfilled by their own business than women in corporations and men launching their own businesses. So for women, it is important to feel passion. [We also found] 77% of the women would trade 10% or more of their income to have more freedom and flexibility in their lives.

What is the hardest thing to do when starting your own business?

Schoenfeldt: Overcoming the initial fear. Again, this goes back to just starting, but starting in a manageable way, taking even one or two steps forward to start to build confidence.

You don't seem to side with conventional wisdom regarding glass ceilings and the mommy track, why?

Schoenfeldt: In our survey we ask women: Do you want to do what it takes to get to the top, and only 5% said yes. If women don't want to do what it takes to get to the top, then there is not a glass ceiling. There are enough examples of those women at the top. If you want to work hard enough and sacrifice and give up with no guarantee, that is not all that attractive to women, or men for that matter.

You seem to make the connection between creativity and business and self-esteem and happiness—explain.

Schoenfeldt: We clearly found that women who are launching businesses feel better about themselves, are more fulfilled, listen to their intuition, and feel unstoppable when they want something. We don't feel that you have to have these qualities before starting. But by taking steps forward, you will develop them.

Perman is a staff writer for BusinessWeek.com in New York.