Women entrepreneurs face challenges and opportunities every day on the path to building a successful business – and raising capital is a major hurdle for your new business. In her latest video, Carol Roth details some important tips that women entrepreneurs can use to raise capital for their businesses. Download the 2018 Bank of America Women Business Owner Spotlight for more on the goals, challenges, and everyday realities faced by women entrepreneurs across the country.
Hey it’s Carol Roth, and Bank of America just came out with their 2018 Bank of America Women Business Owner Spotlight. It is chock-full of amazing information about the state of women business owners. And the great news is that women business owners are very optimistic right now about everything from the state of the economy to growth in their own businesses.
But the one area where women are still struggling is the area of raising capital. So I’m here to give you a couple of tips that will help make raising capital even easier for you. So if you’re a woman business owner or if you happen to know one – listen up.
The first tip is for you to think bigger. I don’t know why it is, but women tend to be more conservative, particularly as business owners – that means everything from the scope of their business to their projections. And having this conservative attitude does not jive well with investors who really want you to be going and scaling the business. So make sure that you’re presenting that front – that you’re somebody who is up for a bigger task.
Second, make sure that you’re finding relevant introductions to investors. If somebody doesn’t know you, at least have them have an introduction to make that connection. So, find a trusted advisor – your business banker is a great place to start, but it could be your accountant or financial planner, or just somebody in your network – to make introductions to investors. This will increase your credibility in their eyes, it will take some of the risk out for them, it will move you to the top of the pile and make it easier for you to get in front of them and to pitch them.
And last but not least you need to round out your team. At the end of the day investors are never investing in just a great idea; they’re investing in great entrepreneurs, which means they are betting on you. But you aren’t going to be able to do everything yourself, which is something that a lot women business owners like to do. They need to know you have those full team members and resources to pull off the plan. So, ideally, get them on board before you raise capital, but if you don’t have the money to do that, at least have them identified, so you can say to investors, “As soon as I get that money, here’s the person who is going to be on my team, and this team is ready to execute.”
So, I know this takes longer and is harder than you’d like it to be – but with those few tips it should make your capital raising a little bit easier. And be sure to check out the 2018 Bank of America Women Business Owner Spotlight for even more great information on women business owners.
- Need Capital? Consider a CDFI
- Help grow your small business with a CDFI loan
- Explore our Resource Center for women entrepreneurs
- Check out the Credit & Lending Resource Center
About Carol Roth
Carol Roth is the creator of the Future File ® legacy planning system, “recovering” investment banker, billion-dollar dealmaker, investor, entrepreneur, national media personality and author of the New York Times bestselling book, The Entrepreneur Equation. She is a judge on the Mark Burnett-produced technology competition show, America’s Greatest Makers and TV host and contributor, including host of Microsoft’s Office Small Business Academy. She is also an advisor to companies ranging from startups to major multi-national corporations and has an action figure made in her own likeness.
Bank of America, N.A. engages with Carol Roth to provide informational materials for your discussion or review purposes only. Carol Roth is a registered trademark, used pursuant to license. The third parties within articles are used under license from Carol Roth. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.