Starting a business can be quite expensive. Many new business owners tap their credit cards, personal savings, and even retirement accounts, only to find that they are still short on cash. Bank loans and venture capital are extremely difficult for new companies to obtain, and angel investors are often hard to find or not interested in your particular line of work. Therefore, it is necessary to consider alternative funding sources to meet your needs.

The discrepancies between the average starting budgets of female owned versus male owned businesses have been the subject of much scientific research, and the results are unclear. What is clear is that, statistically, women tend to open their companies with a smaller amount of capital than do men in the same field. The reasons behind this trend are beyond the scope of this article. However, the ramifications for female business owners can be significant.

Discrimination is still apparent, even in today's society where women are breaking out of traditional molds and entering areas of business and finance dominated by men. Female entrepreneurs have to have determination and be ready to face the need to work harder than men to prove themselves. Studies show that women undersell themselves and ask for less money than men, which means that a good deal of confidence to ask for as much as men might and leave plenty of room for negotiation. In addition, a great sales pitch and a flawless business plan will help secure funding for start-up capital.

Fortunately, the news is not all bad. As with funding for college, funding for small business startup can come from the most unlikely sources. A variety of organizations offer startup loans and even grants targeted specifically to female business owners. Many of these organizations are run by current or retired female executives. The amount of each loan or grant may be small, but there is no reason not to apply for more than one. Additionally, securing these sources first can lower the amount required from a traditional funding source, as well as demonstrating that your business is worthy of investment.

Women are gradually beginning to close the income gap. There are more female entrepreneurs than ever before, and some of these women have begun to give back. With a bit of searching, it is possible to find funding sources that are specifically designed for the female entrepreneur. Women are also perfectly capable of securing funding from more traditional sources. A gender gap still exists, but it simply means that women must work a little bit harder. A solid business plan and a top-notch presentation will seal the deal for a woman just as surely as for a man. It is important for women not to under-value themselves or their companies. Always remember to ask for more than you need, in order to allow room for negotiation. By following these simple tips, you can ensure that you get the money that you need, regardless of your gender.