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8 Creative ways to generate business funding for women

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Being a woman entrepreneur should never draw you away from your goals. It is not about the gender; it is all about your drive to become successful. However, there are some things that you can never control, regardless of what you are. And while lack of funding can be an issue for any entrepreneur, this can be dealt with using a variety of funding methods.

As a startup, you may find fund generation as overwhelming and can sometimes zap out your confidence as a businesswoman. But you must know that raising money for a startup business is not difficult as you think it is. Here are eight reliable ways to generate funds for your business, plus their advantages and disadvantages.

8 Reliable business fund sources

  1. Crowdfunding.

This can be considered as a very new way of raising money to fund a business but take note that the popularity of this method is increasing rapidly. Crowdfunding, as its name implies, is raising funds through the help of a group of people who are willing to invest on your business. This basically starts with your business proposal and the people can then opt how much they are willing to invest on your business. Most of the time, crowdfunding takes place online through various crowdfunding sites.

  1. Angel investing.

Some entrepreneurs who already made their fortune in their respective businesses look for startups that need help in funding. Called angel investors, these people typically are willing to help startups through funding. Apart from financial help, an angel investor can also offer business connections and entrepreneurial advice to the lucky startups.

  1. Family and friends.

A woman entrepreneur can also get funding from their family and friends. Nonetheless, you must be careful about getting funding from family and friends as it can become problematic and can create a strain in your personal relationships. To make things lighter and easier, borrow from family or friends who have money that they can afford to lose. In addition, even if both parties consider it as a “friendly loan”, it is advisable to put everything in writing.

  1. Bank financing.

Obtaining a small business loan from a bank is one of the most common method that people use to raise a business capital. Like any loans, bank loans involve interests and collaterals. It is relatively easy to apply for a business loan from bank financing; you just have to secure a number of important documents required for the loan to get approved.

  1. Small business lenders.

Apart from banks, you can get a small business loan from various lending organizations that cater to small entrepreneurs. Keep in mind that these lenders will also require the loan to be backed with a security asset or higher interest rates. Business loans of this nature also come in different terms of payment.

  1. Credit cards.

While it is not really a good idea to use your credit card to get business financing, it can be done when the going gets tough. Getting business funding using your credit card is quick and easy, but the interest rate is hefty and can reach up to 20%. Keep in mind that this is not an advisable business funding source and must be used as the last resort.

  1. Venture capital.

Some startup businesses attract the attention of venture capitalists, particularly if the said business has a high potential for growth. Traditionally, a venture capital involves receiving equity from the business it is funding, but these days, venture capitals are usually a combination of debt and equity financing.

  1. Business partnership.

You may not have enough money to fund and start your business, but there might be someone you know who does. Maybe you just need a business partner or a co-founder in order to jumpstart your business ideas. Nevertheless, when choosing a business partner, you must pick the one who has similar business goals. Keep in mind that your business partner will have some sort of control over the business. Choose a partner who you can trust and do not choose him or her just because they offer you funds. It is also advisable to have a written contract and a buyout agreement just in case the partnership didn’t work out as planned.

As a woman entrepreneur, you must not be intimidated by your lack of funds to start your business. You must know that with proper research and planning, you can generate the funding you need. It doesn’t matter if you choose a small business loan or funding from your family and friends. What matters is that with the funding you get, you will be able to start your business and just try your best to make it big.

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