Starting and running a small business can be very challenging, especially for women. Funding is very vital for any business and can be in form of loans from banks or individuals, grants from private organizations and government assistance. In order to access any of these funds, you need to be committed to your business and have a clear vision to succeed.
You should spend your savings and a considerable amount of your cash flow on your business at the initial stage. This will let your potential investors know that you are serious about achieving the goals you set for your company. At the initial stage, you can get loans from family and friends so that you can to avoid stringent conditions of banks at that crucial stage. Your relatives can also use their connections to raise funds for you in order to start your business.
Furthermore, you can access state aid and your local offices of the Small Business Association (SBA) will be able to assist you in getting smaller grants that are targeted at women. The association can also assist you to connect with investment groups or find local programs that are ideal for women entrepreneurs. There are also SBA-supported micro-loan programs where non-profit intermediaries are involved in disbursing loans to women business owners.
In addition, there are special departments in banks working with women business owners to assist them in making use of the right financial services at the right time. It is important to build a healthy relationship with your banker before asking for a loan and your banker must be kept in close contact to know the health and strategy of your business.
You can also open an Individual Development Account (IDA), which is a matched savings program designed for the provision of funding resources for minority- and women-owned businesses. The IDA program can be accessed at local banks and government will match deposits to the IDA if the business owner meets milestones and go for financial training courses. The monthly account contributions must be on schedule, depending on the size of the asset goal of your business.
It is advisable to consult a trusted financial adviser so that it will be easier for you to get the right funding for your business. A financial adviser will have the necessary information that will guide you in choosing the right funding program and the proper method of applying so that you application will not be rejected.