How women become business millionaires: arguably, one of the clearest findings is that women owners of million dollar firms think with a big-business mindset when developing their companies' financial structures.

• Author: Allison, Julie

Hitting a million dollars in annual revenue is a dream milestone for any woman entrepreneur. It's proof that she has arrived--a testament to her skills as a visionary leader and a day-to-day operations manager. But if you ask any business trailblazer, she'll tell you getting there is hardly a road paved in gold.

What are the factors that distinguish million dollar businesses from others? A recent study by the Center for Women's Business Research (The Leading Edge: Women-Owned Million Dollar Firms) looked at the million dollar breakpoint and compared the characteristics of women whose businesses have surpassed $1 million against those women-owned businesses operating in the five- or six-figure range. The study, sponsored by KeyBank and AT&T, uncovers some clear evidence of ways to grow businesses in the million dollar direction.

1. Show Your Financial Savvy.

   Arguably, one of the clearest findings of this study is that women owners of million dollar firms think with a big-business mindset when developing their companies' financial structures. They make greater use of sophisticated financial tools in managing their businesses, including employing more funding resources and utilizing commercial business loans or lines of credit. Additionally, they utilize vendor credit and credit cards more often than smaller firms. They also employ more advanced financial reporting than small firms--balance sheets, income statements, cash-flow statements, sales forecasts and break-even analyses. In addition, they more often reduce capital needs upfront by negotiating better terms for their accounts payable, speeding up customer payments and leasing equipment.

2. Serve Larger Clients.

   It makes perfect sense that the larger and more sophisticated your clients, the better your opportunity for higher profits. So it stands to reason that women business owners who have reached or surpassed the million dollar mark are more likely to have clients that are corporations, small and mid-sized businesses, and state, local and federal governments.

3. Practice Professional Development.

   Recognizing the value of ongoing education, women owners of million dollar firms admit to devoting more of their time to developing their professional skills and business know-how. They are more likely to be members of professional groups or associations, to have taken courses in a field related to their business, or to have taken general business or finance classes. They are also more likely to...