How to Raise Funds online as a Small Business Owner
Business growth requires funding, that is pretty much the basics of scaling any business.
For startups and even established businesses, getting funds at affordable rates is always a difficult issue. We have discussed various ways to have good credit scores in the past, but that is still only one part of the story. You can maintain a good credit score and get a loan, but what happens if your business grows further and you need a 2nd loan in quick time.
This is where you need multiple options.
1) Crowd Funding: Crowd funding has already been pretty popular online. The process requires someone to start a thread on a site like Kickstarter or Indiegogo. If people like the campaign and think it is worth funding – they put some money into it. The campaign creator usually has several perks lined up for donations.
Think of this as a pre-order opportunity at a much cheaper rate than what it will be when the product or offer reaches the market.
2) Shark Tank:
Shark Tank is one of my favourite shows on the TV. I guess getting an opportunity to land ourselves on the show is a success in itself – the kind of publicity it gets anyway. But apart from that it is also a huge opportunity to get funded and add a business partner, a shark – into your own business. Having an active partner who is interested in the business and is willing to put not just money but his resources and expertise helps to quickly grow any business.
3) Equity CrowdFunding: Just like crowd funding in general – equity funding also allows the crowd to put micro funds but instead of just getting a perk in return – here the backers gain a part of the company. It is a bit more serious type of funding. Here, you need to give away a part of your business in order to get funds.
4) Loans: Getting a loan online is easier than getting a loan from a bank. You know how traditional banks are – they make it difficult on purpose or at least it seems so. The paper work alone is tedious and once you go through it – the next stage of getting it approved is another difficult process.
On the other hand, there are plenty of website for online loans which are easy to deal with.
5) Angel funding: Angel’s are investors who like to fund into existing businesses for a part of the business. Since they invest in the early stage of a business, they like to take away a larger portion of the entire business.
6) Venture Capitalists: VCs are pretty much like Angle investors but they usually have a larger company backing them up. They invest larger money and usually look for opportunities that has a potential to grow into a really huge business.
That is pretty much the basics so far – because there are no ends to how one can raise their funds – but you need to start looking somewhere. I guess the above 6 places are just enough to get you started.