March 12, 2016

Moms: How to Get Money to Fund Your Business


Running your own business isn’t easy. Running a household brings many challenges, as well. Who knows this better than moms? Many moms do both – working hard to pay the bills and looking after the kids. The first steps of creating a business can be the hardest, as running a business demands resources. And to get those resources, you need money. Below are a few ways you can get the funds you need in order to successfully run your business and your home.

Your current income

Your best bet might be looking in your own bank account. Of Inc. 500 companies, 59 percent were funded at least partially by the original founders of the company. Further research showed that 31 percent were fully funded by the entrepreneurs.

For some, this can mean starting a business while keeping your day job. That might mean smaller growth at first but can also help to keep your lights on. This is a great option to figure out if it really is the path for you, all without a large business loan looming over your head.

Friends and Family

Startup cash can come from informal investors like friends and family. Sometimes this is a great option; you get the money you need without as much paper work. And for others it may be the only option. Young entrepreneurs may find that without having built a strong credit history yet, they do not qualify for business loans.

Similarly, inheriting a large sum of money is also a great opportunity to get the funds to start the business you’ve always dreamed of.

Your Assets

Some people turn to the assets they already have to get the money they need for startup capital. Stocks, annuities, and structured settlements from lawsuits can all be cashed in to get you the money you need.

Banks and Credit Unions

Some banks and credit unions offer small business loans. Requirements vary from lender to lender but in general banks look at your personal and business credit history, your business plan, your cash flow projections and the personal guaranties from all the principal owners of the business.

If you’re thinking about going this route, take care to discuss with lenders exactly what documentation they need. Many applications are turned down because of incomplete applications, according to the U.S. Small Business Administration.

Angel investors and venture capital firms

No, they’re not spiritual beings who rain cash down on the virtuous (but wouldn’t that be great?). Angel investors give you money to grow your business in return for partial ownership, or equity, in your business. It’s a route many take: 43 percent of entrepreneurs said they gave up some equity to investors. Often you can work with an organization like SCORE to find angel investor networks in your area.

No matter which route you choose to get funding, know that you’ve got what it takes to get your business going.

Author: Catherine J. Byerly is the staff writer for


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