Though women have been starting new businesses at a faster rate than men in steadily growing numbers in recent years, it isn’t exactly getting easier for women
at the same rate. In starting a new business for women, there are many more hurdles women have to overcome then men. The biggest one perhaps being women
who are seeking first year financing to get a business off the ground, receive about eighty percent less capital than men.
Starting a New Business for Women
There are definitely resources available for women looking to raise money for their budding company. A few resources that
Loans from banks and credit unions
These are pretty much standard fare in starting a new business for women.
And though, fortunately, women are no longer more likely to be rejected for these loans than men, there are still certain things you’ll need before even heading toward
a bank. Make sure you have a completely solid, foolproof and thoroughly researched business plan. Banks are more likely to approve you if you have every nuance planned out. You’ll also need a near impeccable credit record and score (720 or higher).
If you need a larger loan amount, you’ll have better results with a Small Business Administration approval as well. Banks are more likely to approve any amount loan with an SBA-guarantee, and the plus side is these loans can keep your
down payments and monthly payments low.
Home equity credit lines or loans
In both credit lines and loans, for starting a new business for women, you’ll typically borrow 75 to 80 percent of your home’s value, minus the amount you still owe on your mortgage. The difference in the two is that with a credit line, you get
the money in increments rather than one lump sum as you would with a loan. This also has the added bonus of lower interest rates. Just make sure you can pay this loan off – your house is on the line.
If you think you have, in starting a new business for women, an idea that has the potential to be popular, you can try crowdfunding websites such as Kickstarter or Indiegogo to receive public funding. All it requires is a description of your project (usually in video form), a target dollar amount and end date. You can also offer incentives for target donations such as gifts, or something that involves the donators and your company. If you meet your goal, the website you use takes a percentage and Amazon also takes a percentage for credit card services. If you don’t, the fundraiser gets cancelled and all pledges are returned.
Economic development programs
Depending on the area you’re building your company in, starting a new business for women and getting certified as a women-owned business can help you qualify for money that’s only available for companies with that distinction. This kind of certification can also help you land government and big business clients. Going through the SBA’s online directory can put you in touch with local offices to see if any money is available to you.
The good aspect of real estate investing is that you don’t really much money to start the business. By using creative strategies, like wholesaling, other people’s money, syndication and more, starting a new business for women in real estate can be rewarding in a short amount of time and with very little output of capital and risk.