Small Business Grants for Women
Small business grants are available to businesses that need help starting or expanding their business and are typically aimed at helping specific types of businesses, including women-owned businesses. Unlike traditional corporate loans, small business grants do not require repayment and usually do not require any fees or interest payments.
In general, grants can be obtained from a variety of sources, such as state and local governments, the federal government, and business organizations. However, keep in mind that grants are extremely competitive and the application process can be more rigorous and time-consuming than obtaining a more traditional source of funding.
Consider popular small business grants for women such as the Amber Grant and funds offered through the American Association of University Women, Girlboss Foundation, or Open Meadows Foundation. Check with your local chamber of commerce for information on applicable grants in your city or region.
Angel Investors for Women Entrepreneurs
If you have a strong idea and prefer not to go into debt, finding an angel investor might be an option.
This is someone who has high net worth and works with a business owner, who provides financing and support. In return, they ask for an equity interest in your company, say 5% of the company’s profits.
According to the Center for Venture Research, the average business investment from angel investors was $421,675 in 2021. Entrepreneurs who applied for angel investor funding had about a 25% chance of success. Being in a certain industry also made you more likely to succeed, especially the healthcare, software, energy, and fintech sectors.
Business credit cards
More than two-thirds of entrepreneurs have a business credit card. Unlike other forms of business loans, credit cards work better as a flexible source of small amounts. For example, you wouldn’t want to buy real estate with it, but it can be useful to buy materials and smaller equipment for your business. You can even get credit cards for your employees so they have a convenient way to pay for things if they have purchasing privileges with your company.
Business credit cards work the same way as your personal credit card: you can spend up to your credit limit and pay it back over time. And just like with personal credit cards, if you pay all of your fees in full each month, you owe no interest. In addition, some cards even offer valuable rewards such as cash back or free travel.
crowdfunding
If you have an idea for a splashy or Pinterest-worthy product, crowdfunding is an inexpensive way to raise funding for your business, possibly even before you officially launch it.
Crowdfunding is a loose term that means raising money for your business from a wide variety of everyday people, including family, friends, and even strangers. When you crowdfund, you are typically not providing a financial return on people’s investments. Instead, ask for an outright gift or offer an item that your company will get in return.
You can approach people individually, but many websites can help you crowdfund your business (for a share of the money, of course). Kickstarter is a popular example: you can create a profile and advertise, raise money, and offer “donors” the chance to receive an item your company makes. If you don’t reach your crowdfunding goal, you can offer to refund people’s money.