Start Up Capital For Women-Owned Businesses
By Business Editor
Statistically, women tend to start businesses with a smaller amount of capital than do men in the same field. The ramifications for female business owners can be significant, as this article explains ...
When you have an idea for a business and decide to finally put your plans into action, you need capital to get your company off the ground. Personal savings can come in handy for starting up, but many business owners tap into credit cards and retirement funds as well. Even then, a new business owner may come up short and looking for outside funding becomes necessary. New businesses might have trouble obtaining bank loans and there aren't always angel investors looking to invest in your company. Alternative funding becomes necessary.
The discrepancies between the average starting budgets of female owned versus male owned businesses have been the subject of much scientific research, and the results are unclear. What is clear is that, statistically, women tend to open their companies with a smaller amount of capital than do men in the same field. The reasons behind this trend are beyond the scope of this article. However, the ramifications for female business owners can be significant.
Discrimination is still apparent, even in today's society where women are breaking out of traditional molds and entering areas of business and finance dominated by men. Female entrepreneurs have to have determination and be ready to face the need to work harder than men to prove themselves. Studies show that women undersell themselves and ask for less money than men, which means that a good deal of confidence to ask for as much as men might and leave plenty of room for negotiation. In addition, a great sales pitch and a flawless business plan will help secure funding for start-up capital.
Fortunately, the news is not all bad. As with funding for college, funding for small business startup can come from the most unlikely sources. A variety of organizations offer startup loans and even grants targeted specifically to female business owners. Many of these organizations are run by current or retired female executives. The amount of each loan or grant may be small, but there is no reason not to apply for more than one. Additionally, securing these sources first can lower the amount required from a traditional funding source, as well as demonstrating that your business is worthy of investment.
Women are gradually beginning to close the income gap. There are more female entrepreneurs than ever before, and some of these women have begun to give back. With a bit of searching, it is possible to find funding sources that are specifically designed for the female entrepreneur. Women are also perfectly capable of securing funding from more traditional sources. A gender gap still exists, but it simply means that women must work a little bit harder. A solid business plan and a top-notch presentation will seal the deal for a woman just as surely as for a man. It is important for women not to under-value themselves or their companies. Always remember to ask for more than you need, in order to allow room for negotiation. By following these simple tips, you can ensure that you get the money that you need, regardless of your gender.
Next article: Start Up Capital - Minority Business Owners
Featured Business Startup Product:
|
|
Business Plan Made Easy |
| Writing your business plan is one of the most important aspects of starting your business, especially in today's ever changing business environment. "How To Write A Business Plan ... Made Easy" is broken down into a sequence of logical and doable steps .. Click here for more details ... |
More Articles About Startup Capital ...
Government Grants - A Brief Guide
There is more to owning a business than just renting out a space and opening the doors for customers. It takes long hours and lots of work to make it a successful venture. Many businesses fail during the...
Business Startup Grants - Basic Steps
For someone unfamiliar with starting a business, the terms and phrases used can be a little bit overwhelming. There are so many rules and regulations, taxes and terms used to describe a wide assortment...
Finding Startup Capital - The Business Plan Is Your Best Asset
No matter what type of business you plan to start, the most challenging task is generally raising the money you need. Starting a business can be an expensive proposition, and most people find themselves...
Recommended Resources
For more information about Business Startup-related resources, see our Business resources section, subscribe to our Business Newsletter containing news, updates and insider tips, or go to more articles about Female Business Funding.
***
Related Topics ...
***
Search for more information on "female business funding" below:
You are here: Home » startup-capital » Start Up Capital For Women-Owned Businesses |
|
