Need money to take the next giant business-step? Getting capital from angel investors and venture capitalists is something mom entrepreneurs should consider. These groups provide private funds in exchange for a return on their investment and often, some control over your business.
Want to know more? Here are three tips from mogul moms who have gotten funding for their businesses:
Bootstrap until you need big bucks
You might not be quite ready for big dollar funding just yet. Sara Sutton Fell, CEO of FlexJobs.com advises, “Until you really need funding, my suggestion would be to bootstrap your company (personal loans, credit, savings) until you get up and running…and maybe even further than that!” Friends and family can also be great first loan generators, too. Ditto crowd-funding.
Network and research to find the right investor
You never know where a potential investor may be hiding so keep your eyes open! Noha Waibsnaider from PeeledSnacks.com shares, “Leads come from unexpected places, so constantly build your network. Since you’re spending your non-work hours at your child’s school PTA or on the playground, those are great opportunities to expand your network. It’s a mom’s version of the golf course.” Network with other mom-entrepreneur groups and find out where they received their funding. Then research, research, research!
Get legal help
Don’t go it alone. Funding is one area where you definitely need legal help. “Before you sign any closing documents, make sure to have a great lawyer”, Sally Treadwell of PeopleClaim.com advises. A lawyer can help you understand all the fine details of a funding agreement and make sure it’s airtight.
One final tip:
Don’t be afraid to start small. GoldenSeeds.com, a small company of 230 angel investors whose focus is on empowering female entrepreneurs, make it less scary for moms to seek funding.
Some of our favorite funding resources: