Millionaire Women Next Door The Many Journeys of Successful American Businesswomen Thomas J Stanley, Ph.D Copyright Millionaire Women Next Door Copyright © 2004, 2005 by Thomas J Stanley, Ph D Cover art to the electronic edition copyright © 2010 by RosettaBooks, LLC All rights reserved No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of reprints in the context of reviews This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, investment, accounting, or other professional services If legal advice or other expert assistance is required, the services of a competent professional person should be sought Electronic edition published 2010 by RosettaBooks LLC, New York ISBN e-Pub edition: 9780795314896 For Molly, the very best of all best friends Contents List of Tables Acknowledgements I Women in Business 1: An Introduction to Millionaire Women Next Door 2: What Does It Mean to Be Rich? 3: Millionaires: Women vs Men II Early Socialization 4: The Parents of Successful Businesswomen 5: Beta Women: Beating the Odds Against Succeeding 6: Alpha Women vs Beta Women III About Their Benevolent Nature 7: Generous and Wealthy? 8: Learning to Give 9: Intrafamily Gifts of Kindness 10: The High Price of Being Controlled 11: The Gift of Gifts: Demonstrating Empathy for the Real Needs of People IV The Choice of Choices 12: Choosing a Business: Opting for Self-Employment V Part-Time Work, Full-Time Wealth and Satisfaction Prelude 13: Brian’s Journey: From Hunter-Gatherer to Cultivator of Wealth 14: Ann Lawton Hills VI Alternate Routes 15: The Sales Profession According to Beverly Bishop 16: Wealthy Educators? 17: Why Not Run the Family Office? Appendixes Technical Appendix Appendix Content Analysis of 313 Essays Written by Women Who Own and Operate Successful Businesses Appendix The Profitability of Small Business: Net Income Appendix The Profitability of Small Business: Return on Receipts Appendix The Profitability of Small Business: The Proportion of Profitable Businesses Appendix The Profitability of Small Business: Net Income for Businesses with Net Income Appendix The Profitability of Small Business: Return on Receipts for Businesses with Net Income Author’s Note Index Tables 2-1: The Benefits of Being Wealthy According to Millionaire Businesswomen: Focus on Others vs Focus on Self 3-1: Millionaire Business Owners: How Did Your Teachers Likely Evaluate You? 3-2: Millionaire Business Owners: Who Is More Frugal, Women or Men? 41-42 3-3: Prices Paid by Women Millionaires for Homes, Motor Vehicles, Clothing, and Accessories 4-1: Parental Habits: 4-2: The Top Ten Ancestry Groups of Millionaire Businesswomen in America 5-1: Attributes Derived from a Content Analysis of “Success” Essays: Women with Alpha vs Beta Parents 94 7-1: Net Worth and Income Contrasts: Ten Percenters vs One Percenters 7-2: The Most Ever Spent for Clothing and Accessories: Ten Percenters vs One Percenters 7-3: Contrasts in Home Values, Prices Paid, and Mortgages: Ten Percenters vs One Percenters 7-4: Income Allocations: Ten Percenters vs One Percenters 142 9-1: Millionaire Women vs Men: Economic Outpatient Care Given by Parents to Their Adult Children or Grandchildren Raising the Successful Woman 12-1: Small Business Industries: Receipts vs Profits 12-2: Selected Categories of Businesses Owned and Managed by Women Millionaires 16-1: Contrasts in the Propensity to Give to Noble Causes: Educators vs High-Income-Producing Occupational Groups Acknowledgments I am indebted to my wife, Janet, for her guidance, patience, and assistance in helping select concepts and case studies and for her special talent in shaping this manuscript I also acknowledge the superb contribution of my children Dr Sarah S Fallaw provided much food for thought regarding life as well as job-related satisfaction measures and concepts Brad Stanley’s inputs about topic selection were invaluable He also won the “What Title?” contest Once again, the Survey Research Center, Institute for Behavioral Research, University of Georgia, did an outstanding job collecting and tabulating the survey data for this book Special thanks are accorded to Dr James J Bason, director of the Survey Research Center; Kathleen J Shinholser, “key statistician and number cruncher”; Linda J White; Zelda R McDowell; Mary Ann Mauney; and Cindy Burroughs Acknowledged is the extraordinary e ort and brilliant work carried out by Heather Breedlove, CPA, and Teresa Miller, CPA, JD, in crunching numbers I am most appreciative and grateful to Frank “Provin” Bulloch and his colleagues at the Edwards Institute for Social Research for designing and developing the content analysis of the factors that account for success John Connerat and Tim Fallaw of Connerat and Fallaw did an outstanding job in enhancing the quality control system for this project And again, a million thank-yous to Bill Marianes of Troutman Sanders, Atlanta, for his great empathy and expertise in representing me I owe a deep debt of gratitude to my editor, Chris Schillig, for her sage editorial comments and superb efforts in molding this manuscript Many, many thank-yous are accorded to Tom Thornton, president of Andrews McMeel Publishing, for his continued interest in and support of my work Special thanks go out to Teddy “Scoop” Graham, Sharon Weaver, and Kerry Spivey for their help in editing and word processing I WOMEN IN BUSINESS CHAPTER An Introduction to Millionaire Women Next Door Women! … Women in business … business owners … disastrous… Dangerous for you to excite these people Women [as self-employed business owners] have no place in business… Personal experience … irresponsible for you to glorify these women… The few who succeed are anomalies… You had better pick another topic… They are only wed to their businesses… Unmarried… Unkind… Uncaring… Tyrannical misers… Uncontrollable… Unliked… Undesirable… Unattractive… Unwanted… A bunch of angry, revenge-seeking workaholics Women … no business being in business! fellow who uttered these words intercepted me shortly after I made a presentation The about the contents of this book I refer to him here as Mr A Lota-Uns or Al, for short As he spoke, I noticed that his face became red while veins bulged from his neck and temples Apparently, the content of my presentation angered him While Al was lecturing me, I asked myself how it was possible that everything he had personally experienced regarding “women in business” was at odds with the empirical data I had collected, which serves as the basis for this book.1 Could it be that a few bitter experiences had clouded his perception? My research indicates that he is dead wrong How did successful self-made businesswomen achieve their wealth? Not one of the women studied mentioned motivations of anger, revenge, resentment, or bitterness Many discussed forgiving those who had harmed them and forgetting the past Most receive considerable satisfaction from helping others They are living proof that accumulating wealth and providing nancial assistance to others are not mutually exclusive Why did these women provide so much detailed and candid information for this book? Note that not one of them asked that their real names be used Most participated because they wanted to share their insights, not for glory They did it to help others who wish to become independent Of course, the bene t of responding anonymously may have also encouraged many of these women to be very frank about their journeys to success It did not concern me that Al’s beliefs were at odds with my own ndings But what if young, impressionable women are indoctrinated into believing such things? What if they are taught that women who succeed in business are destined to become the miserable Author’s Note In the course of my research I have met and interviewed many fascinating people who personify “The Millionaire Next Door” and “Millionaire Women Next Door,” and de ne “The Millionaire Mind.” Some of their stories are told in my books and journal articles Hopefully, they enlighten and inspire readers who wish to increase their economic productivity and achieve millionaire status If you have a story to tell or advice to share, perhaps for inclusion in one of my future books, please write to me at the address below Dr Thomas J Stanley Wealthworks, Inc P.O Box 680203 Marietta, GA 30068-0004 Index adversity, overcoming advice from millionaire women on college education about donating to noble causes about learning from the past for parents on starting a business advice from parents of millionaire women affection for product, self-employed business women and African-American women age Alpha parents consumption habits of empathy of financial assistance from Alpha women financial assistance for family members financial assistance from parents husbands of nurturing parents and perseverance of Alpha women vs Beta women age automobiles charitable donations clothing college education consumption habits of displaying economic success divorce economic productivity of frugal lifestyle of home ownership and husbands of net worth of regretting the past satisfaction of SAT scores of “American Workers Generally Satisfied, but Indicate Their Jobs Leave Much to Be Desired” (Saad) Amy ancestors, wealthy ancestry of millionaire women Angeles, Karen antiques stores Aronoff, Craig E., “What to Think About Before Joining Your Family’s Business,” automobile(s) dealership loyalty detailing business purchases, men vs women repair business sales professional advice from Avery parents of Balance Sheet Affluent vs Income Statement Affluent Barber, Brad, “Boys Will Be Boys: Gender, Overconfidence and Common Stock Investments,” Benjamin, Mr Beta maple, the Beta parents consumption habits of empathy of financial help from as hyperconsumers Beta women dating habits of husbands of See also Marginal Bob nonnurturing parents and perseverance of as role models Bishop, Beverly generosity of parents of “Boys Will Be Boys: Gender, Overconfidence and Common Stock Investment” (Barber and O’Dean) Brian Income-producing real estate and mentors Bridges, Jessie charitable donations of lifestyle of budgeting, men vs women businesses profitable vs unprofitable unprofitable, owned by women Business-related mistakes car(s) See automobile(s) Carol charitable donations See also generosity African-American women and Alpha women vs Beta women average American household vs educators to community causes income percentage for men vs women millionaire women vs average American posthumous charitable fund-raising, men vs women children of millionaire women dependency on financial assistance lending money to unproductive Christy parents of Cindy Cinderella parents of clothing expenditures Alpha women vs Beta women men vs women college education funding consulting business consumption habits of Alpha parents Alpha women vs Beta women of Beta parents country club membership men vs women data sources debt dirt business displaying economic success, Alpha women vs Beta women Driskill, Cynthia E., Mrs parents of early work experience economic outpatient care (EOC) See also financial assistance for family members economic productivity index (EPI) men vs women economic risk taking, men vs women economic status kept secret Ed and Kay education college 33 influence on men vs women educators annual salaries of charitable donations of evaluation of millionaire women by frugal lifestyle of as investors as mentors wealth accumulation of decedents, men vs women eleemosynary habits See charitable donations empathy happiness and men vs women parental examples of enthusiasm See satisfaction EOC See economic outpatient care EPI See economic productivity index estate data Faith parents of family business being controlled in rewards and risks of written contract for family meetings family office traits of women who head farmer(s) Fawn C parents of financial advisers See investment(s), advisers financial assistance for family members wealth remaining after financial assistance from parents financial independence Fletcher, June, “When a Million Isn’t Enough,” flexibility Florence Foote, Ms parents of forgiveness freedom See also independence Friend, Teddy frugal lifestyle generosity and men vs women negative type of Garner, Mrs Gem, Barbara parents of generosity See also charitable donations men vs women gift shops See also antiques stores goals of financial independence men vs women Gwen harmony Helen of Orange Hills, Ann Lawton Income-producing real estate “Home Economics: The Smart Money Real Estate Index” (Horymski) home environment See also parents nonnurturing nurturing home ownership Alpha women vs Beta women Horymski, Chris, “Home Economics: The Smart Money Real Estate Index,” humility, men vs women husbands See also Marginal Bob nurturing hyperconsumers income, wealth and income allocation habits Income-producing real estate Income Statement Affluent vs Balance Sheet Affluent parents independence financial Index of Inefficiency (IOI) intellectually gifted, men vs women Internal Revenue Service (IRS) Internet purchases, men vs women intuition, choosing self-employment and investment(s) advisers Fear-reducing actions for wise Long-term, men vs women planning and researching IOI See Index of Inefficiency IRS See Internal Revenue Service job discrimination job satisfaction men vs women millionaire women vs general population stress and John (and Mr Meat) Jones, Cliff C, Winning Through Integrity Judy leadership qualities parents’ encouragement of Long-term investors M., Kelly Lyn M., Mrs major purchases, in terms of hours Marginal Bob Alpha women and Beta women and forgiveness of parents of marital status market research business married women, responsibility for financial independence Marsha McFriendly, Maria parents of Meir, Tiwa men attitudes about controlling household finances and nurturing vs women mentors Millionaire Mind, The (Stanley) Millionaire Next Door, The (Stanley) review of millionaires, people of color millionaire women advice from on college education about donating to noble causes about learning from the past for parents on starting a business advice from parents of affection for product and age of ancestry of automobiles and budget oriented charitable donations by vs millionaire men children of clothing expenses of college education of country club membership of debt of early work experience of educators evaluation of as mentors empathy of exercise and financial advisers for financial assistance for family members by wealth remaining after and financial assistance from parents frugal lifestyle of generosity and vs millionaire men generosity of goals of home ownership and income allocation habits of Income-producing real estate and independence of financial and investments and job discrimination job satisfaction of vs general population vs self-employed millionaire men stress and leadership qualities of marital status of mentors and vs millionaire men net worth of overcoming adversity overlooked by noble causes parents of participation in study Part-time employment and percentage of American business owners perseverance of portrait of self-employed questionnaire and regretting the past religious faith of satisfaction of Self-esteem of sleep habits of stress and and volunteering wealth allocation of of ancestors and giving income and vs millionaire men work habits of motor vehicle(s) See automobile(s) Mudd, Marian parents of net worth bad debts and Self-employed and nonnurturing parents nurturing parents O’Dean, Terranee, “Boys Will Be Boys: Gender, Overconfidence and Common Stock Investment,” others, focus on needs of See also charitable donations parents characteristics of millionaire women’s financial assistance from of modest means, advantages of nonnurturing nurturing Part-time employment passion for work past, regretting the patronage habits, men vs, women “pay yourself first,” perseverance Potomac, Janie parents of profiles Ann Lawton Hills Barbara Gem Beverly Bishop Brian Carol Christy Cindy Cinderella Ed and Kay Faith Fawn C Fay J Naivete Gwen Helen of Orange Janie Potomac John (and Mr Meat) Judy Kelly Lyn M Maddie S Marian Mudd Marsha Mr Benjamin Mrs A Reader Mrs E Mrs M Mrs Tone Ms Foote Professor and Mrs John Wertberg Professor William Rachel Rich Susan Trish S Wear profitable businesses vs unprofitable businesses Rachel Rich parents of Reader, Mrs ? real estate Income-producing management company regretting the past “Relationship Between Realized Income and Wealth, The” (Steuerle) religious faith men vs women Ten-percenters vs one-percenters responsiveness restaurant owner retail profession revenue enhancement, gift RON (return on net worth) index S., Maddi Saad, Lydia, “American Workers Generally Satisfied, but Indicate Their Jobs Leave Much to Be Desired,” 221 sales profession satisfaction SAT scores Alpha women vs Beta women economic performance and GPA and IQ scores and men vs women wealth and School-bus driver Scottish ancestry Self-employment, choosing type of business for women and Self-esteem Self-reliance See also independence shoes Shorter, Peter small businesses antiques and gift stores loans and mortgages profitable vs unprofitable profitability retail spouse, choosing because of wealth staffing firm Stanley, Thomas J The Millionaire Mind The Millionaire Next Door Statistics of Income Bulletin Steuerle, C Eugene, “The Relationship Between Realized Income and Wealth,” 230 stress support systems, nonparental Susan financially independent family swimwear company tax preparation business teachers See educators tenacity See perseverance Ten-percenters vs one percenters charitable donations of clothing expenses of and financial assistance for family members financial independence of frugal lifestyle of home ownership of income allocation of investments of net worth of parents of religious faith of Tone, Mrs Tyler unprofitable businesses owned by women vs profitable vacation expenditures, men vs women volunteerism men vs women Wall Street Journal study See Fletcher, June watches wealth allocation of frugal lifestyle and and giving and income men vs women millionaire women vs general population occupational status and real estate and wealthy ancestors benefits of being decedents generosity of men vs women economic status kept secret expectations of the focus on others Wear, Trish S parents of Wertberg, Professor, and Mrs John frugal lifestyle of investments of parents of Wertberg Scholarship Fund “What to Think About Before Joining Your Family’s Business” (Aronoff) “When a Million Isn’t Enough” (Fletcher) widows exploiters of William, Professor Winning Through Integrity (Jones) .. .Millionaire Women Next Door The Many Journeys of Successful American Businesswomen Thomas J Stanley, Ph.D Copyright Millionaire Women Next Door Copyright © 2004, 2005... the world of the self-employed Imagine what it’s like to be the daughter of an Al or others like him What chance will these women have to succeed on their own in the economic arena? Most of the. .. changing in the right direction More and more parents now hold the sorts of beliefs about their daughters that the parents of most of the women pro led in this book did But still the beliefs of the A