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Another Woman-Owned Business Folds

Posted by Brenda on Thursday, July 2, 2009 · Comments 

What Happened to AlphaWomen.com?

Alphawomen.com Homepage

Alphawomen.com

Usually, I am a very optimistic person, but please allow me to vent. I HATE seeing female-owned businesses fold, especially ones that empowered other women. I was saddened to hear that the AlphaWomen.com website, http://alphawomen.com/which was founded by Freda Mooncotch, is shutting down by the end of July 2009.  In Ms. Mooncotch’s blog post from July 1st, she stated, “I do not have the resources to continue to carry the site any longer…!” Ms. Mooncotch continues in the next paragraph, “Many of you are wondering what will come of me…Really the opportunities are endless and I don’t have a plan. I am going to let it unfold and jump into the unknown trusting that everything is going to work out for me! In fact, I know it is.”

Does Your Small Business Have a Business Plan?

I don’t have a plan? I wonder if Ms.Mooncotch had a business plan with AlpahWomen.com.  I wonder if she made revenue and financial projections. Sadly, but true, more small businesses fail than succeed within the first five years. The main reason is lack of capital also known as lack of money. Let’s give Ms. Mooncotch the benefit of the doubt and assume she had a business plan. It is safe to assume that her revenue projections did not make plan, which is why she can no longer carry the site. Ms.Mooncotch then writes, “If you feel compelled to take AlphaWomen.com over…by all means make me an offer…you won’t insult me by what you may think is a low ball offer. Just be ready to back it up with cash in the event we come to an agreement! You just never know what mood you might catch me in!”

Do You Make Business Decisions Based on Your Mood?

What mood you might catch me in? Is she selling a business based on her mood? What about the value of the business? What about the assets, database, and good-will? Don’t get me wrong. I am all for doing business with people that give me a “good vibe” and feelings are important.  However, one could be in the worst of moods, but a mood should NEVER dictate the price and transaction of a business deal. All too often, women entrepreneurs make decisions based on their feelings, mood, and heart and that is good, but we women entrepreneurs need to learn to incorporate  logic, the analytical side of our brain into business for creating balance. It is imperative that women entrepreneurs make a paradigm shift in how we see ourselves as business owners.  When you, as an entrepreneur are responsible for generating revenue for your very own small business, you have an obligation to see yourself as a business person. Do you think CEOs of successful companies tell their board of directors or investors that they don’t have a plan? Or, they say things like, ” Hey Tom, that’s okay that you ruined the relationship with Company ABC and lost a potential 2 million dollar business transaction. I know you weren’t in the best of moods. Hang in there buddy.” I think not.

I liked the AlpahWomen.com website. I had high hopes for Ms. Mooncotch’s company mainly because I liked how her site was a platform for bringing women together. It was a brilliant idea, but unfortunately, like most small businesses, it was short lived. So here is my question to all the female entrepreneurs: Do you have a business plan in place for your small business? Feel free to post a comment.

Brenda Horton is the owner of Hware, a software company that designs online business planning tools for small businesses. She will be hosting a webinar series on social media strategies for beginners starting July 28th 2009.

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  • I don't know if Ms. Mooncotch had a plan, but many entrepreneurs were overly optimistic projecting their advertising revenue. Social networking business is still relatively new concept, unless you are playing with the big boys such as Facebook or Myspace or have raised millions of dollars in VC funding, it's very hard to monetize the site within few years and become an over night success. It's about a solid business plan that requires continues tweaking, it's about marketing strategy and lots of hard work.
  • Thank You for your comments. Absolutely agree! My question is this: Why do you think most entrepreneurs don't spend the time putting a solid business plan in place? I have my own ideas but would love to hear yours and others. Thanks!
  • A business plan is essential to survival. It's not just the capital (more elbow grease than money is often the answer) that is needed to succeed...it's the plan. Trying to make something too big too fast and being a bit unfocused kills so many of these sites.

    People also want to make money right away. That's not realistic. Great businesses take time and planning.

    There are many, many great women owned businesses thriving out there. When some of them fall by the wayside, it's because they expect great things and spend too much time dreaming about how it should go and not being open to constructive criticism and ideas.

    As far as selling something that was supposedly of value for a mood based price.....that's either a clear message to me that the business was destined for failure or just a way for this person to jump ship asap.
  • Thank you for your comments. I agree that a PLAN is essential to the success of a business. Unfortunately, most entrepreneurs don't spend the time putting a good business plan in place.
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