Female entrepreneurs are changing the face of American businesses. More than 12 million companies in the United States are owned by women, and they generate a whopping $1.8 trillion each year in the economy. These are not just side-hustles that women do when it fits into their busy lives. Fundera reports that 62% of women entrepreneurs say that their business is their primary source of income. While women are a driving force behind the booming American economy, they are still often faced with obstacles not felt by their male counterparts.
Only one-quarter of all female-owned companies seek business financing, and less than 10% receive venture funds for startups. Compared to men who secure business financing, women typically ask for about $35,000 less for similar business ideas. All of these numbers may make you wonder why female entrepreneurs get less funding than men.
Some experts believe the types of questions asked of female entrepreneurs and how they respond to the questions are significant reasons for the difference. Others feel that investors offer more pushback to female entrepreneurs and that men are more likely to make bold assumptions and predictions in their pitches about the outcomes of their business ideas.
To secure the funding you need to start your business, you need a strategy. Here are four things you can do to get your business started on the path of success today.
Look for Female Founded Venture Capital Funds
The venture capital (VC) world is dominated by men. Even though female-owned businesses are booming, these traditional male investors aren’t giving women their fair share of funding. The good news is that female entrepreneurs are still succeeding. However, if you don’t want to run into this roadblock, you may want to look for a VC fund that was founded by women.
These women are determined to help other women get the funding they deserve and make a strong case for female leadership, too. Here are a few female-led VC funds you might want to explore:
- Brilliant Ventures – This firm was founded by Lizzie Francis and Kara Weber. They believe that diversity of every kind is critical to the success of They are behind popular brands like Parachute and Skylar.
- Female Founders Fund – Anu Duggal founded this fund to break the cycle of traditional VC funding. She and her team look for female-founded startups of every kind and have helped brands like Billie and Shine.
Create a Business Plan
Every successful female business started with a plan. You’ll need to lay out the business structure. This should include details about what your business will do, how you will you do it, and any research that you’ve put into the idea. You’ll want to be clear and concise about the structure of your business and what resources you need to be successful.
A few sections you should include in your business plan are your business concept, any market research you’ve performed, and what sort of capital you’ll need to get started. It’s also a good idea to present details about your background and any business partners or mentors you have and what they bring to the table.
Break Down the Work
Starting a new business is hard work. There will be lots of moving pieces, and investors want to see that you have every single piece covered. This is why you need to create a work breakdown structure. This is an easy strategy that allows you to break up each big goal into smaller, easy-to-achieve plans.
Work breakdown structures are used by successful project managers to project timelines, assign responsibilities, and establish any costs and a working budget. All of these small details combined with time projections can help investors see that you have a well-thought-out business idea and plenty of help to get the job done.
Practice Your Communication Skills
The best ideas in the world can be overlooked if you don’t know how to communicate them effectively to others. Communicating your business strategy can come in the form of writing your plan, presenting a stellar pitch, and even listening to and acting on feedback. Before you send off any documents or head into the boardroom to present your idea, be sure to get feedback from fellow entrepreneurs, a trusted business mentor, or friends and family.
If writing isn’t one of your strengths, it might be a good idea to hire someone skilled at writing business plans. Or, you can also write your own and then hire an editor to make sure you are on the right track. Before you present your pitch in person, practice it several times. Consider adding in a few visuals like a video, pictures, or electronic presentation to boost your chances of being remembered at the end of the day.
Setting Your Business Up for Success
Starting a business is challenging and rewarding at the same time. You will overcome some barriers and probably have to set a few fears aside along the way. You might even need to look for some inspiration and lessons from other female entrepreneurs on your hardest days. However, using these strategies can help set you up for success and get you the funding you need to make your dream of owning a business a reality.
