How can you fund your business as a new entrepreneur? There are resources available to you if you are willing to create a road map for your business upfront.
If you don’t have money to start the business of your dreams, there are financial resources available to help you fund your business. One of the most common objections to hiring a business coach is money. People often say things like “I need more clients first”, “I can’t afford it yet”, “I have to talk to my husband”, and the list goes on. But oftentimes, it isn’t a lack of money it is a lack of resourcefulness. When people are resourceful and come up with the money it shows great trust in themselves and the process, and that they are ready and willing to do what it takes to build the business and respond to their calling.
The difference between men and women and how they tap into financial resources to fund their businesses
No one needs to take extraordinary measures as there are options that may be a little uncomfortable, but not dramatic. Men, in general, are bigger risk-takers. They are willing to have a half-baked idea and jump right in. On the other hand, women like to be prepared in upfront. Completely set and know for sure that the business is going to work.
The question becomes, how much risk are you willing to take? A lot of the discomfort from the financial side is not having enough information. The information you need is the specific details of the products and services you will be offering. Conceptual details like how the product or service will be delivered, what the product or service looks like, what they feel like, how is the supplier, who is the target audience, etc.
Likewise, you need to develop financial projections. It doesn’t matter if this is service-based with little upfront investment or something more complex. Without the financial projections, your idea seems even scarier. It is important to know how much it will take to launch your business. Similarly, you need to know how long it will take to generate revenue. And, it is important to have an expectation of what the early months of your business will look like in terms of money going out versus money coming in.
We don’t know what we don’t know when starting a business
When you are starting a business, the best thing you can do is take advantage of the knowledge that consultants and coaches offer. They can help you plan ahead and ensure you have all of your plans in place.
We don’t know what we don’t know. Having someone to guide you and help you build processes saves time and money throughout the course of your business.
Diane shared a quote from a documentary, The Biggest Little Farm, “There’s never enough time to do it right, but there’s always enough time to do it over.” In the end, if you don’t do it right the first time, you are going to have to spend the money anyway. It makes more sense to pay it upfront and do things right instead of losing precious time in your business.
Coming up with a plan to be prepared to pitch to investors to help fund your business
Start with a road map or a business model canvas. Diana’s road map is simplified from the model canvas. The road map addresses the conceptual items and the financial piece. If you have a framework, then you have an operating blueprint. Whether growth is fast or slow, you want to plan for it because you want to know what you are aiming for.
Look at your plan every year and evaluate if you are where you want to be or doing what you want to be doing. Doing so will help you make a course correction if necessary.
The overall road map will help you identify if you need financial assistance. If you have a plan in writing, you will come off as more prepared and professional and taken seriously by those you pitch for funding.
Outside funding sources include your spouse, other family members, a business partner, savings accounts, stock, selling items, etc.
Listen to episode 112 with Maureen Borzacchiello.
Clarification on when women could sign for a business loan with a man co-signing: The Women’s Business Ownership Act of 1988 allowed women to get a business loan without a male co-signer. Since 1972, the number of women-owned businesses has increased by 31 times.
Also, please note that this interview was recorded before the interest rates started to escalate.
Funding resources for business owners
Traditional funding resources are bank loans or investors. However, now people are crowdfunding, identifying your target to raise money for your business. This is basically pitching your idea to the people that would have an interest in it.
KJ Blattenbauer used Kickstarter to start her business, Pretty PepTalks.
When you build the foundation first and invest upfront, even if borrowing money, you will be set up for success long term.
Jenny Kassan does something even more targeted to help you fund your business. She helps people use crowdfunding. Her book is Raise Capital on Your Own Terms: How to Fund Your Business without Selling Your Soul.
The key is starting with a plan that is both conceptual and financial.
How to make asking for money easier.
About Diane Tarshis
Diane helps people build businesses that are conducive to happiness. She helps anyone with a business idea and the desire to thrive and succeed, even if they are not, particularly business savvy. Diane guides people through everything from time/task management, financial projections, and investment, all the way to a launch strategy to get their service out to the public. She is especially interested in helping women, BIPOC, and middle-aged entrepreneurs who have great business ideas but are often overlooked or discouraged from starting a business. Diane’s business is called Start-Up Distillery.
Learn more about and connect with Diane:
If you are interested in building a strong foundation for long-term success and would like to learn about my Purpose to Results™ Method, download my free eBook today.
