Eight Ways Christian Women Business Owners Can Get Funding

By Louise Harris

In today’s business world, 40 percent of women are opening companies. Some are Christian business owners. They are performing well. Women-owned businesses are successful. Unfortunately, they usually don’t expand or they use personal funds for expansion. The reason? Only 2.9 percent of women business owners are given the funding they need to expand. For example, Rose Vitale, an entrepreneur, had $5 million in revenues, but she was denied capital from investors to help her expand. Even paying a lawyer who specializes in the Securities and Exchange Commission and business advisers couldn’t help Vitale. This problem is happening more and more in the United States where female-led companies are not getting funding from investors or venture capitalists.

So How Do Christian Women Get Funding?

Successful business owners will do whatever it takes to come out on top. This is true whether the owners are male or female. Therefore, males or females will come up with creative ways to find the money they seek. However, men are more likely going to the traditional route, such as a business loan, to get their funding. Although women might try business loans, they might not be successful. Therefore, they have to be more creative to find the financing they seek. They might even end up with more funding if their creative financial arrangements are structured correctly. 

Here are some funding ideas women could try.

1. Family and Friends — Often, when women business owners are starting their companies, they begin with their own capital. They work hard to build their business. They slowly build their revenues and the desire for their products increases. They begin to bring on employees. However, they get to a point where they can’t do much more until they have more capital. At this point, the natural place to go is family and friends. Although it might be difficult to ask for money from family, it still is usually where women might go to get money, especially if they don’t need that much. If they need a few thousand, family and friends might work just right. However, if women need more than a few thousand dollars, they should try something else to get funding.
2. Crowd-Source Funding — Otherwise known as a Kickstarter campaign, crowdsourcing is a way to raise capital in a short time. Although Kickstarter and Indigo are the most popular, other companies also offer crowd-sourcing platforms. In fact, some others have fewer restrictions and could net women business owners more funding. To use crowd-sourced funding, you have to go to the site and begin a campaign. Let’s say you want to expand into a new warehouse, and you need money to pay for the building. You create a campaign “Expand Into Warehouse.” You set a goal of how much you want to raise, such as  $1 million. You set a deadline when you want to raise the $1 million, such as two months. Then, you follow the instructions for promoting the campaign. Different crowd-sourced platforms, but they almost all have a social media component. Others also expect you to get a certain percentage from friends and family besides the crowd-sourcing platform. When it works, you receive your $1 million or more in funding. When it doesn’t work, you often don’t get to keep the money people had contributed to your campaign. The successful campaigns work because the business owner knew how to promote it and was able to use the right keywords.
3. Partnerships — Find someone who could work with your company and offer equity in the company in exchange for investing in your company. Instead of going to high net worth investors, you might have to find a local investor whom you trust. Partner agreements don’t have to be straight equity in exchange for funding. You also could offer profit-sharing to partners. For example, if they agree to increase sales, you agree to give them a percentage of the sale. An increase in clients or customers could provide the funding you need to expand. If you do decide to give away equity, don’t give away too much in case you need to get funding later. Taking on a partner often works to provide you the funding you need. Sometimes, taking on a partner causes other issues so make sure you have your attorney check over the agreement. You also should have a clause that allows you to end the partnership if it doesn’t work the way you envision and in case of the death of one or more partners.
4. Advertising — There are digital products that allow you to get paid for advertising on your site. Banner swaps, widgets, and display ads are just a few of the types of digital advertising available. You accept advertising from other companies on your site. Make sure you own your Web site. Nowadays it is easy to build a customized WordPress website. Otherwise, the hosting company would be the one to accept the advertising. It works this way, a company pays you a sum per impression to have their ad on your site. Every time someone views your site, you get more money from the company. In a few months, you could have the money you need to expand. When pursuing this option, you don’t want to do barter exchanges unless you are looking to get public relations. Barter exchanges, giving your banner ad for their site while they give you an ad for your site, will not provide you any funding that you need. So stick to your guns and ask for money to advertise.
5. Angel Investors — Women business owners could send a proposal to angel investors who help female entrepreneurs. These investors often provide small funding options. They have guidelines that you have to use when submitting a proposal. They often have contests where many apply but few win. However, if you are the one chosen, it could be the funding that you need to expand and succeed. 
6. Small Business Administration Loan — Unlike private banks, the SBA has to provide a certain amount of money to minority business owners, including women. Visiting the Web site will explain how you can apply for an SBA loan and possibly get one. These are loans that are backed by the government. Because of the pandemic, the SBA has increased its funding amount and reduced some requirements. However, it still is not easy to get an SBA loan.
7. Private Investors/Venture Capitalists — Christian women business owners should do their due diligence and determine the best venture capitalists to approach for funding. They are the ones who are interested in helping women business owners. You would need to make your proposal the best it can be because you would be competing against a number of other women business owners. And, you aren’t guaranteed to get the funding that you need. Still, some do.
8. Female Founders Pitch Summit — The first Female Founders Pitch Summit will take place on May 21, 2021. It is a one-day event that is guaranteed to provide more funding to more women business owners. It will bring 100 female founders to meet 50 investors and is expected to provide millions in funding. Female founders will have the opportunity to pitch their projects, products or companies. They will talk with many in the industry and get the advice they can implement. The summit is expected to start a movement and change how venture capitalists provide funding in the future.