Steps to funding your first start-up as a mumpreneur

Steps to funding your first start-up as a mumpreneur.

To all the mums out there, you’re doing it. You’re caring for a little person 24/7, perfecting negotiation skills you didn’t know you had, and managing that nap schedule like a time-keeping pro.

And now you’re ready to return to the world of work. But perhaps not in the way you were used to.

mumpreneur and baby at laptop

More women than ever before are searching for flexible work opportunities and many are returning from maternity leave to start their own businesses. These women are affectionately referred to as ‘mumpreneurs’ and they are redefining what it means to be a ‘working mum’ in a modern world

If you’ve been considering work from home business ideas for mums and have been drawn to entrepreneurship – from the flexibility it offers to the satisfaction of taking on a new challenge – keep reading.

In this article, we will share how you can secure that all important start-up funding. 

How to Get Funding for Your Start-up

Let’s take a look at some of the best ways to secure start-up funding as a mumpreneur. So, you can get that business idea off the ground.

Crowdfunding

Crowdfunding is something most of us have done before. Think back to bake sales or charity runs as a kid. For those who aren’t familiar with the concept, crowdfunding involves raising money from a large number of people who each contribute a small amount to boost your efforts. 

You can collect money in person – either in the form of cash or with a mobile card reader that lets you accept card payments. Or you can set-up a payment portal online where people can visit your page, read about your entrepreneurial venture, and make a donation.

Launching a successful crowdfunding campaign doesn’t only provide a financial boost to your business, it also provides the confidence you need to move forward by drumming up support from those around you.

According to LinkedIn, crowdfunding is an excellent way to raise money as a mumpreneur because, “it allows businesses to tap into a larger pool of potential investors. Traditional methods of raising capital, such as bank loans or venture capital, can be difficult to obtain, especially for small businesses. 

By contrast, anyone with an internet connection can donate to a crowdfunding campaign. This means that businesses can reach a global audience of potential investors, which can greatly increase the amount of money raised.” 

Business Loans

Many mumpreneurs choose to take out a business loan to support their start-up efforts. Business loans are one of the best business ideas to help you raise the money you need to get started. However, they require a lot of planning and risk assessment. For example, your bank will require a very detailed business plan from you before they carry out a thorough assessment of your financial situation.

Before taking out a business loan, it is important to prepare your business plan. This will serve two purposes; it will help you secure a business loan and it will help you create a business strategy that keeps you on track to achieving your professional goals.

As mumpreneur Sacha Atherton shared with Virgin Startup: “write your goals down, write down what you need to do to get there, and work towards them. When your plan doesn’t work, think of other ways you can achieve it and be realistic. It’s important to understand which things are actually distractions and wasting valuable time. Have your strategy but try and think of the quick wins too.”

Explore Business Grant Opportunities

One of the many great things about being an entrepreneur is that the government offers business grants to new companies. These are awarded to businesses aiming to fulfil a specific need where there is lack in the economy. 

For those exploring workable business ideas for new mums, it’s worth noting that there may be a need for certain types of businesses in the UK and therefore, more opportunities to access grant money. 

For example, there may be a shortfall of businesses in the tech industry. So, mumpreneurs launching tech-focused start-ups would be more favourable for business grant opportunities.

Business grants are a popular option for many mumpreneurs able to secure them as you don’t need to concern yourself with paying the money back or parting with equity from your business. You can also receive a grant ranging in value from in the hundreds to the tens of thousands. So, it can make a big difference.

The government provides business grant opportunities. So, if you would like to explore the possibility of a grant, visit the Gov.uk website to find a detailed list of criteria.

Approach Friends and Family

Reaching out to those in your immediate circle and sharing your at home business ideas is a great way to generate interest and raise money for your start-up.

This route is also less formal than many we have listed. However, it can be more appealing as it doesn’t always require proof of income, detailed business plans, or a demonstration of business traction and growth. 

What’s more, you may be able to raise money at a low interest level or even accept generous donations from friends and family keen to see you succeed.

We know that asking for money can feel uncomfortable. However, try to remember you are presenting a business opportunity and that this is a professional pitch that could further your career in a field you are passionate about. 

Whether you are exploring a few small home business ideas or you have set your sights on something particular, it’s important to present your idea as clearly as possible. Treating your pitch to family and friends like a business transaction will allow you to present your ideas with clarity.

Apply for a Start-up Loan

Another route to securing start-up funding is to apply for a start-up loan. These loans are government-backed. They are made accessible to business founders looking to fund a new business idea or financially invest in an existing business that has been trading for less than three years. 

According to The British Business Bank, The Start Up Loans programme “aims to  encourage entrepreneurship in the UK, increase the rate of business creation and improve survival prospects.”

This government start-up loan provides business founders with access to up to £25,000 in valuable funds. To find out whether you would be eligible for this funding, view the full criteria here

It is worth noting that if you receive a Start-up Loan, you will be charged an interest rate of 6% and will be required to repay the loan over a period of one to five years. 

However, what makes this loan extra special is that you have the opportunity to receive expert support through a free mentoring offer that will help further your efforts. This complimentary service is invaluable to any entrepreneur and will play a vital role in your success.

Final Words 

As you can see, there are numerous ways to secure funding for your business start-up. The approach you take is up to you. We hope what we’ve shared has been helpful to you and perhaps even highlighted how to get funding for your start-up in ways you weren’t aware of. We wish you every success in your mumpreneur journey.

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