Why A Grant Is The Answer To A Businesswoman's Funding Needs
On paper, things have never seemed better for women entrepreneurs. According to the National Association for Women Business Owners, over 11 million businesses in the U.S. are owned by women. These enterprises generate about $1.7 trillion in revenue in sales and employ more than 9 million people. However, how does that translate to a business’s funding? Can grants help a business woman’s funding needs?
Apart from being a minority, women-owned businesses continue facing numerous hurdles. And lack of funding is one of the weightiest concerns right now.
A report published in the journal Venture Capital shows that over 95% of all US venture capital gets awarded to male CEOs. And although companies headed by women or having a woman on the team perform better, businesses with all-male teams are 4x more likely to get funding.
Experts warn that unless women get creative, they may continue lagging. And one way to address this challenge is to opt for business grants for women.
What Is A Business Grant?
A business grant is a certain amount of money that a private organization, federal, state, or local government gives to a business for specific purposes. Unlike other types of funding, grants are free money. They don't have to be repaid.
Why Is A Grant Appropriate For Your Funding Needs? Free Source Of Funds
As mentioned above, business grants are free funds. You don't need to give up equity on your business or repay. You can use the money to start your business without giving up control.
Easy Information Access
Unlike other types of funding that are determined by managers, institutions, governments and other private entities that provide business grants for women avail their information to interested parties promptly.
The information shared usually provides precise information about whom, when, how, and where to give grants. This helps grant seekers like you to adequately prepare and present a strong case to win the grant.
By providing this information, you have enough time to pick the right grant for your business since different funds are availed for different purposes and industries.
A Positive Ripple Effect
Getting a grant can push you to greater heights than you ever imagined because it has a beneficial ripple effect. Once you win one grant, your chances of accessing more funds increase tremendously because other funders will see you as a reliable candidate.
In addition to increasing your odds of getting more funds, winning a business grant also increases your visibility. And this is something you need to take your business to the next level.
Some grants are so coveted that when you win the award, the marketing and visibility your business gets exceeds the value of the money received. Your business will thrive thanks to the credibility that comes with the grant.
Build A Support Network
Every entrepreneur needs a strong support network to succeed. But according to Inc., close to 50% of women founders lament that they lack mentors and advisors.
And some of the best places to find the right support network can be found when searching and applying for business grants for women. This is because you may need to talk to grant specialists and someone who has already been awarded. These forums offer the right opportunity for women entrepreneurs to connect, learn from each other, and widen networks.
How To Win A Business Grant
Although business grants for women may seem attractive, they're not for the faint-hearted. They are not easily obtainable because businesses have to meet certain requirements.
To increase your chances of winning, here are a few tips to remember:
● Search for business grants widely and wildly.
● Follow the application instructions and requirements to the letter.
● Make your application stand out by clearly conveying a solid worth ethic, and a strong desire to grow your business to benefit the community.
● Be specific about how much you need and what the funding will be used for.
● Think about what the organization, company, or institution providing the grants needs and how you and your business can help them achieve their goals.
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