So you have a great money making idea and a great business plan – but not enough funds to get your business off the ground. This may seem like everything needs to be put on the back burner until you come up with the money on your own, but there are still plenty of choices for women with no money starting a business.
In this blog, I am going to list just a few examples.
Women with No Money Starting a Business
Before turning to other options, take a good look at what personal money you can spend. Even just a few thousand dollars can help get your company started
and off the ground. Make a list of all the basic necessities you’ll need and try to come up with at least that much. Do all the work yourself, until you can afford to hire
others and make sure you don’t owe anyone else money. Then at least, if your venture doesn’t pan out, you’ll have only lost your own money.
If you’ve tried and just can’t scrape together enough money on your own, try recruiting family members into your business. If you can pool your money together
then you may be able to start up your company without actually borrowing anything.
Make sure to have a great business plan to help convince anyone you approach, and offer him or her incentives if they decide to join in. Women with no money starting a business tend to find this an easy way to get the money they need.
There are plenty of private foundations and government grants available for women with no money starting a business – but there’s a catch however; most of these grants are for non-profit companies only. If your company is for-profit there is still hope in the form of grants, but they’re few and far between and incredibly hard to find for women with no money starting a business.
Don’t get grants confused with other programs to help women business owners (either for-profit or non). These programs can help women obtain loans and training, but they don’t offer free money.
Grants.gov has great listings for federal grant programs, many which are specifically tailored for women-owned businesses.
Credit cards are often risky business for women with no money starting a business and should really only be used if you can guarantee a quick profit, or used as an absolute last resort. If you know you’ll get the money back in time to pay off your card before the interest hits, go for it.
Otherwise, if you can’t and your venture fails, you run the risk of ruining your personal credit and may even have to file for bankruptcy down the line. Tread wisely in this case.
Angel investors and Venture capital firms
Angel investors and venture capitalists are two different ways of getting loans for women with no money starting a business; though rely on much of the same expectations to make their own money back. Angel investors will invest some of their own money into your company, effectively owning their own share.
However because of the risks they run in doing this, angels are extremely picky in what they choose to sponsor, usually only picking companies that have developed technology that will first of its kind or those that have a wonder market capture potential.
Venture capitalists do much the same thing; if they choose to invest they’ll expect to have a certain amount of ownership in the company. The catch is that most of the VCs are very hands on, and will actually tell you how to run your business. However, they want you and your company to succeed and make money, and most are very well connected and are great for networking.
The downside to both of these groups though, is that they’re usually very tightly knit groups and made up mostly of men. Women with no money starting a business usually tend to find it harder to get a step inside them, and as a result, rely
on these groups less than men, preferring to try other avenues for loans.
Real estate investing is a great opportunity for women with no money starting a business. You can get into this career path with no money, no credit and even without a job or steady income. I have seen many women on unemployment or on welfare getting in real estate investing and create a profitable business in a short amount of time.