It’s no secret that while black women own 20 percent of all women-led companies in the United States, we are only receiving a fraction of funding. Moreover, black women entrepreneurs face significant barriers to accessing capital compared to others, while the expenses associated with running a business never fade. As the need for materials, marketing, coaching, conferences, and networking is all necessary for business growth, the expenses associated with starting and growing a business can be more than overwhelming and leave you downright frustrated.
If we want to achieve our greatest potential as entrepreneurs–fueling our businesses, our families, and our communities- we’ve got to roll up our sleeves and find the funding. Here are three ways to fund your business that don’t include using your credit cards or taking out high-interest business loans.
Grants: Free Money For Your Business
Do you have a project within your business that needs funding? Grants are often awarded to small business owners to fund a specific project or to help them expand their business. Winning grants is a great way to boost your small business’s funding because they do not need to be repaid. Grant funding organizations offer awards ranging from $500 and upwards. As a small business owner, you can seek out local grant programs offered by nonprofit organizations and government agencies. Corporations such as FedEx and American Express also offer grant opportunities throughout the year, while platforms such as HelloAlice share small business grants. Although the application process is often time-consuming and, in some cases, pretty competitive, do not be afraid to send out your grant proposal, as it could lead to an opportunity for you to access funds that will fuel your business.
Crowdfunding: Raise Brand Awareness and Funds
Imagine needing $100,000 to fund your startup but not having access to financing from a traditional bank. Crowdfunding is an awesome alternative as it will allow you to raise money while creating excitement around your business. Just think: with a crowdfunding campaign, investors will contribute to your startup campaign while you are sharing the value of your brand and building a potential customer base.
Platforms such as iFundWomen, Kivaa, GoFundMe, and Patreon are great ways for entrepreneurs to share their business ideas and collect financial support from backers.
Bartering for Products or Services: Network and Grow
If you are short on funds but willing to offer your services or product in exchange for do you have a product or service and would you like to offer it to another business owner in exchange for a product or service that you need? Look no further than bartering. Bartering is when two entrepreneurs negotiate the value of their offerings and offer an equal exchange. Interested in finding out about bartering? Check out barterblack.io and bizx.
Last Thoughts for Black Mompreneurs
Accessing funding for your business does not need to place additional strain on your business. Grants, crowdfunding, and bartering all offer the potential for entrepreneurs to promote their brands and gain access to free money. Research funding opportunities and then carve out time to apply for these opportunities.
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