FIVE FUNDING TIPS FOR FEMALE ENTREPRENEURS
Women entrepreneurs are fast making their stand in both the US and international business ecosystem. According to an article by CNBC, women make up around 40% of rising entrepreneurs across the States today. That’s a great boost to women power no doubt. But there is one major area that limits the growth of female-led businesses even now- “funding”. Over 72% of women entrepreneurs have stated restricted access to needed business capital as a crucial challenge for their ventures.
Are you too an enterprising lady aspiring to launch your own startup yet worried about financing issues? Well, no need to sweat. The road is not easy but there are some viable ways by which female entrepreneurs too can size up considerable funding for their businesses.
Women entrepreneurs naturally experience better investment possibilities with women investors. Being women themselves, female investors are confident about women power. They know how “much” women are actually capable of and would love to see other women succeed. Moreover, women investors are more likely to relate to business ideas forwarded by women entrepreneurs. Hence they would be more receptive to investment pitches from female entrepreneurs. Such conducive factors encourage better financing opportunities from female investors for women-led businesses.
In fact, there are investment groups dedicated to female entrepreneurs that allow enterprising women to have a 1-on-1 meeting with interested women investors.
2. Hone up your pitching strategy
Your business pitch is your #1 tool when you are aspiring to inspire potential investors to support your venture. And, you have to be really smart here. Some entrepreneurs are naturally good at pitching. If you are blessed with such an arsenal- nothing like it. But for those who are not, there are bundles of helpful articles, training seminars and video tutorials to boost up the pitching skills. If you have a mentor, ask him or her for invaluable insights. Experienced mentors know how to inspire and motivate and the know-how would be handy for your pitch.
Your business pitch should be able to present your venture in the best light possible. Women entrepreneurs are not exactly upbeat about bagging their accomplishments and abilities. But don’t let these hesitations ruin your chances of bagging a sizeable investment. There is nothing wrong in being proud of what you have achieved through sheer hard work. However, the word is “truthful bragging”- make sure you don’t make any false claims or misleading statements.
3. Network extensively and aggressively
You might have got the most breakthrough business idea in town but that’s not enough to garner funding. You can’t garner the attention of investors if you can’t make yourself known to them. Extensive networking is the watchword here. You have to meet and network with as many potential investors possible and pitch your idea to them. You have to flaunt your skills, know-how, confidence and ability to make a mark. Smart investors will always gauge your capabilities and skills before putting their money and trust in you. You have to “earn” that credibility through the best representation of your business idea and vision.
4. Pitch before entrepreneurs
Do you know who Venture Capitalists ask for referrals before investments? The entrepreneurs they have already invested in. In fact, referrals from entrepreneurs they have investments with is the #1 consideration for future investments in most cases. So, if you know any entrepreneur who has successfully raised funding for his/her business – don’t hesitate to present your pitch before him or her.
5. Crowdfunding would be helpful
Crowdfunding is one of the most viable ways to raise funding for female-led businesses. The specific funding policy counts on mass support to garner capital for a startup. There are scores of crowdfunding websites today to help out visionary entrepreneurs. However, a solid response from the campaign depends on how well you can highlight your breakthrough idea on the campaign page. If possible, get your crowdfunding page written by a professional content writer. Request the same writer to pin down a Press Release to spread the word about your campaign.
Credit: Business 2 Community