Finding funding for a business start-up is never easy but for women, it can be even harder. A worldwide survey published last year found that male entrepreneurs were almost twice as successful at finding an initial $100,000 of capital as their female counterparts, while other studies have shown that men are less likely to invest in companies run by women.
This means that it’s all the more important for female entrepreneurs to have coherent fundraising strategies and to be aware of the various governmental, community-based and charitable organizations that are trying to bridge the gap.
Funding
If you’ve already begun working on your start-up, the chances are that you’ve already made use of your personal savings and asked family and friends to chip in. You may also have looked into Angel funding and investigated local community funding organizations. Beyond this, there are several other options worth looking into. You’ll need to start with a good business plan and tailor it where necessary just as you would tailor your resume before sending it to potential employers.
Crowdfunding
The great thing about crowdfunding is that it can be tailored to appeal to a specific niche. This makes it a good way for women to reach out to other women, who are significantly more likely to support them and are also more likely to have limited funds for investment so that they find the opportunity to make small investments particularly appealing. When speaking directly to other women, entrepreneurs can appeal to their sense of solidarity and highlight the shared experience of restricted opportunity.
Banks
Here’s a piece of good news: although your gender might disadvantage you in other ways it actually makes it easier to get funding from a bank. Why is that? It’s because banks know that, on average, women are much more reliable when it comes to paying back loans. In fact, some banks are so enthusiastic about women in business that they have specially tailored loans available and even offer guidance on the financial side of setting up and bootstrapping your business.
Government programs
Recognizing that entrepreneurial women remain a largely untapped resource and can potentially do a lot to provide jobs and generate money for the state, the government has also taken an interest in providing support. Community development financial institutions (CDFIs) are backed by the Treasury Department and often offer special packages designed to help women who are just starting out, including advice on childcare and other issues that affect women much more than men. They can also help with networking which is vital to developing your supply chains and helping your business grow.
Grants for women
There are numerous grants aimed at helping women in business. They tend to focus on particular sectors, and they are often aimed at members of additionally disadvantaged groups, such as single mothers and members of minority races. Often the competition is intense but that doesn’t mean you shouldn’t try – you’re going to need to take on challenges like this if your business is to prosper. Brush up on your grant writing skills first and apply for as many different ones as you can.
AccelerateHer
Some support organizations focus on specific sectors. Women are particularly under-represented in technology so AccelerateHer works to promote the work of female entrepreneurs in this area, helping them to find investors. It runs networking events and offers training to help women sharpen up their business skills. Some of its senior team members are themselves keen investors in the sector, such as the former Institute of Directors’ chair Lady Barbara Judge, who has a long history of involvement with organizations aimed at helping younger women to build up their business careers.
Women’s Business Centers
Women’s Business Centers (WBCs) work across all sectors and can be found all around the country. They’re dedicated to leveling the playing field for women and with this in mind they offer training, mentoring, help with business development and even direct help with financing, inviting their successful alumni to give something back by way of thanks. Even if you can’t find a center in your local area, you can participate in webinars to hone your business skills.
Although it’s easy to feel isolated when you’re just starting out, there is support if you look for it. Many women have been through this before and understand the kind of difficulties you’re struggling with. If you’re determined and persistent, you can get your business through the difficult start-up stage and on the road to success.
