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Tuesday, January 1, 2019

4 Tips For Business Women to Maximize Their Funding Potential

Business woman looking for funding

There are plenty of women out there with brilliant business ideas but no idea how to take the next step. Taking over a business you don’t want, or staying in a job that makes you unhappy aren’t your only options. These tips will teach you how to negotiate for more funding with confidence and without stepping on any toes!
  1. Be familiar with the numbers
When it comes to selling your brand, nothing is more helpful than having a thorough understanding of your financial standing. The effectiveness of your pitch relies on evidence-based data, so be sure to include long-term financial projections, your profit to-date profit margins, your debt repayment plan, revenue streams, and turnover rates. It’s a lot of information, but having the answers to these questions demonstrates preparedness and interest in your own financial future.
  1. Clarify non-negotiable terms
While flexibility is important, you must know your limits. You know your business best, and though advice from investors is indispensable, you should discuss any standard terms that are not up for negotiation. This tactic can also save a lot of time—you can focus more on the actual business proposition rather than fumbling through details, especially those you have a firm position on.
  1. Less is more
Having more investors doesn’t always translate into a better opportunity for your business. Instead of entering negotiations with numerous financiers, narrow your search down to just two or three. Do your research, and choose the investors whose interests best align with your brand’s message.
  1. Seek understanding
Knowing how to negotiate for more funding starts with getting on the same page as your investors. Nothing is worse than leaving a deal confident, only to later find out you’ve misunderstood your deal terms. You may be tempted to agree to terms you don’t quite understand in order to secure seed funding, but this may have disastrous effects on your relationship over time.

Any business, from a window and door showroom to your very own bakery, will benefit from these suggestions. If you have a business plan and are willing to put in the work, there’s no telling what you will achieve.