4 Strategies for Women Entrepreneurs To Boost Funding Success

Securing funding for a business is rarely an easy feat at the best of times. When you’re a female founder, it can be a significant hurdle — we’ve covered this before and it is well-documented by countless studies from reputable associations. Besides broadening your funding horizons, how else can you tackle this obstacle?

When we zoom out beyond the ‘female tax’, there are many more factors that come into play when it comes to securing funding: 

1. A solid business plan is crucial to show the viability of your business and of you as a founder.
2. A compelling storytelling ability helps you back your business plan up by building emotional connection. 
3. Having the right network means you can get your pitch in front of the right audience, and have strong support systems to help you navigate your entrepreneurial journey. 
4. Finally, self-development initiatives can help you pitch confidently to potential investors and build the resilience needed to overcome challenges.

In this article, we dive into these initiatives to help you overcome funding gaps as a female entrepreneur.

1. How to create a solid business plan that wins over investors

Your business plan is the first step to showing investors that you are serious and knowledgeable and that your business has a clear path to profitability.

Your business plan needs to clearly and concisely:

• Articulate your business idea; the problem you are solving and your unique value proposition that differentiates your business from competitors. Back up your case with verified facts and figures to objectively show the size of the opportunity you are leveraging.
  
• Show an understanding of your target market and how you are meeting their needs. For example, WhatsApp’s key insight was that people in emerging markets faced barriers in communication technology, one of which was that they primarily had low-end smartphones with limited processing power and storage capacity. Traditional messaging apps were often too resource-intensive and sometimes totally incompatible with these devices. WhatsApp identified the need for a lightweight, efficient, and optimised messaging platform and were able to demonstrate this to Sequoia Capital.
  
• Explain your scalable business model and how it generates sustainable revenue, while providing evidence of traction and progress to showcase the viability of your startup.
  
• Present a clear financial plan with revenue, expenses and profit margin projections for the next 3-5 years It’s important that figures are realistic; Mark Cuban, a well-known entrepreneur and investor, advises founders to “make sure your numbers are conservative and defensible.”
  
• Outline your marketing and sales strategy, including pricing, customer reach, and ongoing sales efforts.
  
• Detail day-to-day operations and key processes, as well as your team’s strengths and capabilities. Highlight key members and their qualifications and achievements to emphasise the ability of your team to deliver on its goals.
  
• Clearly state your funding requirements, with amounts needed, allocation and the expected return on investment. For example, Dropbox’s business plan broke down how it would use its funding of $1.2 million into new hires, product development, marketing and operational expenses.
  
• Explain your exit strategy and how it provides a return on investment. For example, Google Ventures invested in Uber because they saw the potential for a highly valuable exit through an IPO; Uber’s IPO in 2019 was the largest IPO of the year, raising $8.1 billion. 

According to Sequoia Capital, a good business plan should be no more than 10 slides, and leverage storytelling techniques to engage and leave a lasting impression on investors — which brings us to our 2nd tip!

2. How to master the art of storytelling 

Have you heard of the saying that people buy you and not your products? Investors often emphasise this, recognising that success goes beyond a good idea; it requires a skilled and committed founder/team capable of executing and overcoming the challenges that come with building a business. 

So how do you share your founder story in a compelling way?

• Be authentic and honest, sharing why you first started your business and any challenges or failures experienced along the way. For example, Airbnb’s founders shared personal experience of struggling with rent and how they turned it into an opportunity for themselves and others.
  
• Practise articulating your story. Refine the words and phrases you need to perfectly explain who you are, the purpose of your business, key metrics and goals.
  
• Use anecdotes and analogies to make your business more relatable and create an emotional connection. Dropbox likened its app to a “magic pocket”, accessible anytime and anywhere, while Stripe aimed to increase “the GDP of the internet”, emphasising ambitious goals.
  
• Bring passion and pride into it. This helps enhance the emotional resonance while also showing that you back yourself.

By telling a compelling founder story, you show investors that you not only have expertise and a viable business plan, but you also have the passion and the drive to succeed.

3. Why networking matters to overcome the funding gap

Through networking, you can gain access to valuable resources, insights and connections. You might meet significant mentors who can share their experiences and even introduce you to potential investors or funding sources. Or, you might meet other female founders to share the entrepreneurial journey with and problem-solve similar challenges.

Networking also presents opportunities for you to build your personal brand and stand out to potential investors. At its simplest, networking is a chance for you to meet more people and amplify your reach. If you approach it strategically, networking events can be a platform to share your story, achievements and insights, establishing yourself as an expert in your field. 

To find networking events, check out your area’s Chamber of Business or Commerce as they seek to facilitate new connections between members. Consider joining our free Disco community too where we hold regular masterclasses and virtual and in-person events for Lift Women members to connect!

4. How to build self-confidence 

Backing yourself and having a winning attitude is essential to increasing your chances of securing funding as it helps improve your pitches and presentations. When you are confident, it shows in your body language, voice and overall presence. You project an air of authority and credibility, which captures the attention of your potential investors. 

Confidence enables you to communicate your ideas and business proposition clearly and effectively. You speak with conviction, articulating your points with confidence and passion. All of this helps persuade your potential investors into funding your business idea! 

Having self-confidence also builds the resilience needed to endure the entrepreneurial journey, especially when facing potential investors who may not immediately recognise the value of your business. With confidence, you’ll be able to bounce back from setbacks, adapt to changing circumstances and remain focused on your long-term goals.

So how can you work on your self-confidence? ​​You can be as targeted as attending workshops focused on mindset training and public speaking or you can simply engage in activities that put you outside your comfort zone like learning a new language or a new sport.

As a female-focused crowdfunding platform, Lift Women is passionate about helping female entrepreneurs achieve their business dreams. In addition to making funding accessible to all women, we share exclusive resources and support — just like this article — to help female entrepreneurs elevate their businesses to new heights. If you’d like to learn more about how to get funding for your business and see how Lift Women can help, we offer free 30-minute strategy calls so book yours today!