5 Ways To Get Funding For Online Business

funding for online business
By William Mapp in Entrepreneurship | Updated on July 31, 2021

One major stumbling block you may be facing in terms of getting your online business off the ground is how to get funding to start up your online business. 

The good news is that starting an online business doesn’t need to be expensive, and getting the funding you need needn’t be difficult. 

Here are a few ideas...

5 Ways To Raise Money For Your Business Online

Funding For Online Business Through Loans

There are multiple ways you can secure a loan, including:

  • Asking family and friends for loans.
  • Going to your local bank or credit union.
  • Using credit cards. (Not recommended due to high interest rates.)
  • Using lines of credit.
  • Using crowdlending programs like Prosper.com.

Funding For Online Business Through Crowdfunding

If you have a really exciting business idea and a way of “rewarding” investors, then you might post your idea on a crowdfunding site such as Kickstarter.com or Indiegogo.com.

Keep these tips in mind:

  • Invest in your own business first. You need to show potential investors that you have a lot on the line and that you believe in your own idea.
  • Offer enticing rewards. Give people access to your product or even special editions of your product, along with rewards that will appeal to their ego or sense of wanting to do good.
  • Create a good description. Share your enthusiasm and really persuade people to invest. A good video will help people get excited about your idea.

Moonlight to Raise Money

Do you have a service you can quickly and easily provide to others?

Then you may want to work after-hours to offer this service as a way to raise money. For example, you can go to a site such as Flexxity.com, UpWork.com or Fiverr.com to offer writing, design or even consulting.

Or you might consider working offline doing manual labor on weekends to raise cash. It may not be your idea of a fun time, but it’s only temporary to help you get the cash you need.

Sell Unwanted Items

This may include everything from big items like a motorcycle or RV, to antiques to collections. You can sell them locally using Facebook local swap and shop groups, using CraigsList.org, or even using eBay.com.

Start on a Shoestring Budget

There are plenty of ways to save money as you go. This includes:

  • Using free trials or even freemium version of the tools and resources you need.
  • Bartering for goods and services with other professionals.
  • Reinvesting profits directly right back into your business.
  • Sticking with your day job so that you have extra cash to invest into your business.
  • Investing in advertising and outsourcing to grow your business more quickly.
  • Shopping for specials when you’re purchasing software, tools, or even office furniture. In other words, don’t pay full price when you don’t need to. AppSumo.com is a great website to find deals.

One of the benefits of starting an online business is that it tends to be a lot less expensive than starting a traditional brick and mortar business.

And when you use the ideas above, then starting an online business is accessible to just about anyone!

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