If you are considering starting your own online marketing company, you have a wide range of options when it comes to raising funds. You can opt for traditional bank loans, you can get a small business Loan, or you can create your own crowd-funding platform.
One of the most popular and traditional ways of raising funds for a new business is by taking out a loan from a bank or financial institution. Although there are several risks associated with taking out a bank loan, it is still a popular option among business owners. If you are looking for quick cash flow, a bank loan might be the best option for you. You can apply for a small business loan from a bank as well if your business is looking for some expansion.
The biggest risk associated with taking out a bank loan is usually the financial institution itself. Banks are not always the most reliable of companies when it comes to lending money to businesses. Even if you pay back the loan on time, there is still a chance the bank might not offer the same loan to you next time. Additionally, if you run into any cash flow issues, you have to deal with the bank first before you can address your financial problems. With bank loans, there is no direct interaction between the business and customer.
In the past decade, several platforms have cropped up that allow entrepreneurs and businesses to connect with potential investors and customers through crowdfunding. Similar to a Kickstarter campaign, crowdfunding allows individuals to contribute funds towards a specific project or product, with the expectation of future benefits. The biggest advantage of crowdfunding is that it provides a fast and easy way to gain investment capital for a new business. If you are looking for an opportunity to raise funds for your startup, you can create a crowdfunding page with a compelling video pitch, and enticing rewards for investors.
Another popular crowdfunding option is Patreon. Launched in 2012 by Jack Conte, the CEO of software company SquareSpace, Patreon is a membership platform that allows creators to build and sustain their creative businesses. With the help of digital marketing company Future Inc, you can set up a Patreon page for your creative endeavor – whether you are an artist, a writer, a musician, or a film maker – and begin to receive donations from customers who enjoy your work.
Although these are quick and easy ways to gain investment capital for a business, they are also arguably the most direct forms of capital. Since the investors have direct engagement with the company, they are more likely to be attracted to high growth companies or concepts. If you are looking for a more traditional route to funding your business, you might want to consider dipping your toes into the crowdfunding waters first.
If neither of the above work for you, you can opt for a hybrid financing facility. A hybrid loan is when you combine at least two forms of financing to bridge the funding gap for your business. For example, you can obtain a loan from both a traditional bank and an equity-based investment fund.
If you are looking for a quick and easy way to gain financing, you can create an investor relations plan, and pitch to investors.
Create Your Own Crowd-Funding Platform
If none of the above work for you, you can create your own crowd-funding platform. Similar to Kickstarter and Patreon, your own crowd-funding platform gives you full control over the campaign, and provides you with all the necessary tools to gain funding for your business. The biggest benefit of doing this is that you get to decide exactly who you want to give the investment, how much you are willing to give, and you can manage all the campaign activity and interactions from start to finish.
With your own crowdfunding platform, you have the flexibility to run your own campaign, set the fundraising goal, and identify the rewards for your contributors. Plus, you can integrate your own payment processor or take the funding directly from bank accounts.
If none of the above work for you, and you are looking for an opportunity to raise funds for your business, you can create your own crowdfunding platform, or you can opt for more traditional bank loans or equity-based investments.