Before you fundraise: 7 questions every female founder should ask

In our last blog, we explored the key paths early-stage founders can take to fund their growing start-ups — bootstrapping, borrowing, or raising equity investment.

But how do you actually decide what’s right for you?

In this follow-up from our first webinar in the series, generously supported by the British Business Bank, we’re sharing 7 essential questions to help you get clear on your funding strategy so you can grow on your own terms.

❓1. What kind of business are you building?

This is your foundation. Are you a:

• Steady-growth service provider?

• Product-based brand scaling through e-commerce?

• High-growth tech company aiming for rapid market share?

The type of business you are building determines the type of capital that's right for you. Investors want scale. Lenders want stability. Bootstrapping thrives on efficiency. You need to find the kind of money that's right for you and your business model. Remember, VC money isn't right for everyone!

❓2. What’s your runway?

Can you afford to self-fund a few more months? Or do you need capital now to launch or grow? Bootstrapping is great — but if cash flow is tight and opportunities are passing you by, it might be time to look at other options.

• If you’ve got breathing room: Bootstrap

• If you’re stalling growth: Consider debt or equity

❓3. Do you want to stay in control?

Equity fundraising means sharing ownership — and often, decision-making. If maintaining control is critical to your vision, explore non-dilutive finance options first, such as grants, loans, and startup funding schemes. Remember, there’s power in owning your business fully — even if it grows slower. (And check back here to read upcoming blogs on non-dilutive finance options!)

❓4. Can your business afford repayments?

If you’re considering a loan, ask yourself:

• What’s the cost of the loan in real terms?

• Will this funding create ROI within the loan term?

• Can my cash flow handle monthly payments?

One great tip to help answer these questions is to create a cash flow forecast with sensitivity checks. For example, reduce your revenue projections by 20% and see if you still survive.

❓5. Are you truly ready to pitch?

If you’re leaning toward raising, make sure you have:

• Strong traction (users, revenue, or growth)

• A compelling pitch and solid deck

• A clear use of funds

• The energy for the investor search — it’s a full-time job!

You don’t want to be pitching out of desperation, as investors will be able to see that. What's more, investors want to see their money going towards your growth, not covering payroll or keeping the lights on. Make sure you have enough of a runway to be able to afford the time and expense of seeking equity investment.

❓6. Do you understand your own risk tolerance?

This one’s about you.

Are you okay with personal guarantees? Delayed income? Giving up control?

Understand what kind of risk you’re comfortable taking — and build your plan accordingly. There’s no shame in playing it safe if it aligns with your goals.

❓7. Have you spoken to someone neutral?

Talk to someone who isn’t trying to sell you anything — an advisor, a mentor, or your local business support organisation. (In the UK, this could be a Growth Hub or Local Entreprise Partnership. Or it could be our team at Breakthrough Labs!)

Sometimes, just explaining your plan out loud helps you hear whether it makes sense.

Remember, it’s not about finding capital. It’s about finding the right capital, at the right time.

💡 Final Thought

The best founders don’t just chase funding — they align funding with their vision.

Whether you bootstrap, borrow, or raise… make the call with intention, not impulse.

You’ve got this.

👉 Need a place to start? Check out tools from the British Business Bank or join our community at Breakthrough Labs where we'll support you every step of the way.