A mompreneur (that’s mom + entrepreneur, if you didn’t know yet) has to juggle so many things. On top of the usual familial and personal responsibilities, they have another seemingly incredible task—running their own business.
Being one’s own boss, much like tackling motherhood, can be quite fulfilling. But it does come with another set of challenges, especially being a woman in business. Unfortunately, the business playing field is not entirely leveled for female entrepreneurs. Experts say that men still outnumber women three to one when it comes to business ownership. All the more reason why mompreneurs need access to essential resources, from operating a successful business to getting the funding they need.
Why is Funding Important?
If you’re a mompreneur, you know how crucial securing funds is. Having enough financial resources can help you create a better business, whether you want to beef up your marketing with targeted LinkedIn ads or add staff members to increase capacity. Here are some of the areas in which business funding can help mompreneurs like you:
- Capital or startup expenses
- Research and development (R&D)
- Marketing and advertising initiatives
- Upgrading technology and equipment
- Staffing requirements
- Additional working capital
- And other business needs
Funding Options for Mompreneurs
Securing funding can be extremely beneficial across a wide range of business areas. But how exactly can you get the funding your business needs? Below are some funding options for women in business:
Bank loans are one of the most traditional sources of funding. If you’re looking to get a larger lump sum as startup capital or other business needs, this can be a good option for you. However, it’s important to note that banks typically have stringent credit requirements and may require collaterals.
Venture capitalists or VCs offer equity investments for a share of ownership and often provide strategic guidance. Usually, when one thinks of VCs, tech startups come to mind. However, getting funding from VC funding can still be a viable alternative for mompreneurs with businesses that have high growth potential.
If you’re a mompreneur with a business in its early stages, you can seek out angel investors for your financing needs. Angel investors are individuals who invest their personal funds in new businesses. In exchange, they get a minority stake. They’re a lot like VCs, except angel investors use their own financial resources. To increase your chances of getting funding from an angel investor, you should research and reach out to those keenly interested in supporting women-owned businesses.
Crowdfunding can help mompreneurs raise enough funds by pitching their business ideas online. Typically, crowdfunding involves small amounts of investments from a larger group of people. Businesses can also incentivize their audience by offering rewards like discounts, membership, or an exclusive perk in exchange for their contribution.
Microloans are generally short-term loans from nonprofit organizations. The amount you can loan is smaller than bank loans. But an upside is that microloans have less stringent requirements, making them more accessible and just right for businesses seeking quick funding.
Grants for Women-owned Businesses
Many institutions recognize the obstacles female entrepreneurs have to tackle. Luckily, the same institutions offer grants specifically for women-owned businesses to give them a financial boost. There are plenty of local and global business grants that mompreneurs should take advantage of. To start, you need to review the different available grants and check the best match for your business size, industry, and financial goals.
The government also helps level the playing field for women entrepreneurs. They do this in different ways, from allocating a specific percentage of government contracts for women-owned businesses to providing funding opportunities specifically to female entrepreneurs. Make sure to explore the various national and local grants that your business can be eligible for. These government grants are low-interest loans, which is great for entrepreneurs that are just starting or are struggling financially.
It’s also essential to remember that applying for a loan or grant is just a step in the whole process. You first need to do your internal review to identify just how much funding you need and the most suitable financing option for that requirement. Then, you need to do even more research on how exactly you can secure the funds from your chosen funding option. From there, the work goes on until you secure the funding you need and complete the repayment requirements. We know it sounds quite challenging, but securing the funding your business needs will be totally worth it.
Whether we like it or not, money does make the world go round, well, at least in the business world. It’s crucial for mompreneurs to get the proper funding to succeed in a very challenging and competitive business world. And hopefully, you can choose the best option that can help you take your business to the next level.
By Chatty Garrate
Chatty is a freelance writer from Manila. She finds joy in inspiring and educating others through writing. That’s why aside from her job as a language evaluator for local and international students, she spends her leisure time writing about various topics such as lifestyle, technology, and business.