As the business world continues to evolve, e-commerce has received overwhelming attention. Just at the comfort of your couch, you can shop for items and get them delivered to your doorstep. This has presented an opportunity for many entrepreneurs. However, many people still struggle to fund their online businesses. Fortunately, there exist funding options that could help take your business a notch higher. The following are tips for finding financial support as you get started.
Try bootstrapping
Before seeking funding from other sources, dig deep into your pockets and savings to see how much you have. Maybe you won’t even need savings after all. With savings, you’re not left with any pending debts, or hefty penalties when you make late repayments on your loan. This way, you keep your name and that of your business clear and build customer confidence. Using the SaaS platform will help you create an excellent online presence and acquire customers organically in online marketing. However, if you’re looking to grow your business fast, then it’s time to consider other sources of funding from outside.
Incubator/ mentoring program
This arrangement would be ideal for entrepreneurs who are just starting. Tech-based incubators, accelerators, and mentoring programs are widely accessible and present in many countries, even online. Because such arrangements involve a network of people with different skills, tools, and resources, you’ll most likely have what you need to scale up your business.
Crowdfunding
If you’re starting, this could be an option for you. As you exercise best practices crowdfunding, you’ll access financial products that come with more economic freedom compared to other sources.
Accessible funding for crowdfunding include;
- Indiegogo
- GoFundMe
- Kickstarter
Most of these companies will give you access to financial support in exchange for equity. This will also help you gain a customer base right away as well. If someone donates to your startup campaign, they will be more likely to continue supporting you.
Business credit line
This product is mainly for entrepreneurs looking to scale up their businesses. When starting, entrepreneurs are prone to underestimating the funds required for their day-to-day running. Such could lead you to a financial crisis. The business line of credit can bail you out. This arrangement is a cocktail of bank loans and credit cards. It allows you to withdraw against an initially approved amount, with the requirement to pay interest only for the borrowed amount.
Ready for a boost?
Sourcing for financial boost is the hardest part of a business, yet very rewarding. The above sources of funding could bail you out. However, whatever works for one company may not necessarily work for another. Be sure to ascertain what works best for you. However, getting a source of funding is one thing, but wisely using the funds well is yet another. With the right alliances, you can enjoy your journey to success.
Emma is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. Say hi on Twitter @EmmaSturgis2
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