3 Modern ways to raise money for your Business that are extremely easy
Funding is the lifeblood of any business and without it, there will be an automatic introduction of many other problems in a business’ life. New businesses that are still in the startup stage will need funding to get off the ground. While most entrepreneurs will use their own funds or savings to start their businesses, very few manage to entirely self-fund the company to profitability, and will therefore have to seek external funding. Now, for businesses that have taken off already, growing your business and increasing sales often requires you to purchase assets such as new equipment, furniture, vehicles, and so on – and that requires funding too. In the same vein, sufficient working capital is a key aspect of any company’s financial health. Not having enough working capital can have a serious impact on the future of your business. There is very little that can be achieved in a business without sufficient and proper funding.
If you’re looking to grow your business and take it to the next level, you will surely need funding that enables you to execute on your business plans. Whether you want to increase sales, expand your range of products or services, move into new premises, hire more staff, or expand internationally, none of these can be achieved without commensurate funding. Without money, the engine of commerce does not run. Money is the lubricant and the fuel. It makes possible the smooth design, production and marketing of a product; and it keeps the administrative functions efficient. Money also moves the company forward by fueling growth and expansion. Unless you are independently wealthy, or you have wealthy, generous and supportive family and friends, you’re probably going to have to work hard to raise money for your business.
Below are 3 modern ways to get money to fund your business.
As the name suggests, “crowdfunding” is all about engaging the crowd to co-fund projects and startup ventures. Funding can be provided by tens, hundreds or thousands of individuals and/or businesses. Crowdfunding became a phenomenon on the internet a few years ago and ever since then, platforms like Kickstarter and Indiegogo have seen hundreds of new crowdfunded projects emerge, funded and established through the modern-day approach to business funding.
Crowdfunding gives you the opportunity to connect with like-minded people who you wouldn’t have been be able to engage with, normally. It also helps you to gauge the interest of people in your product and understand what’s resonating with people and what’s not. This shows you how to improve your product and your pitch. Most importantly, crowdfunding can help you raise money to fund your business without stress. Crowdfunding campaigns are fantastic PR tools. They help gain visibility and generate buzz. Many platforms also greatly simplify the technical and paperwork side of fundraising. One of the most underestimated benefits is securing early users, advocates and ambassadors who have a real financial interest in sharing and empowering your success.
Crowdfunding uses a web-based platform or social networking sites to solicit funds for the fundraiser by showcasing the product’s model and the associated story to potential donors or investors. The crowdfunding websites typically charge a fee for using their platform and services to bring money for the cause. Popular crowdfunding platforms in Nigeria include quickraiz.com, kickstarter.com, naijafund.com, fundanenterprise.org, and a host of others. Visit any of the sites for better insight on how each of them works and then see which of them best suit your business purpose and needs.
- Join an accelerator program
Startup accelerators are programs intended to accelerate the development of early stage companies or ideas. Generally speaking, an accelerator is a fixed term program that usually lasts from three to twelve months. It is a short-term growth program that promotes a few years of growth in the span of a few months. It provides a combination of education, mentoring, and networking, often with investment. It is distinct from other forms of investment and incubation, such as angel investing or grants. Think of an accelerator programme as a boot camp in market-readiness and investment development. Studies show graduates from top-rated accelerator programs reached key milestones sooner.
For a growing startup, acceptance into an accelerator programme is a huge accomplishment. These programs give young startups funding opportunities and mentorship. They plant new teams into the thriving startup ecosystem, surrounded by learning opportunities and fellow innovators. There are several benefits of a startup accelerator, including:
- Seed funding: Most programs offer startup companies with seed investments.
- Coworking and private work time: We all know how much hard work and dedication drive success; this is why accelerator programme gives you lots of independent work time. These programs often provide coworking space or private offices for this purpose.
- Training: Many accelerator programs offer access to one-of-a-kind training opportunities. These come first from formal mentorship programs. These advisors are successful founders, investors, and experts in growing businesses. Throughout an accelerator, companies will take part in seminars, workshops, mentor meetings and pitch practices.
- Networking: Accelerator programs rely on cohorts. So, over several months, startups get to meet others in the early stages of development. They exchange ideas with fellow innovators that can drive future success and partnerships. Accepted startups also get to work with founders of successful companies and access to an alumni network.
- Demo, presentation or pitch day: The program culminates in a pitch day. After scaling their companies, each team gets to pitch their startup to potential investors.
For a business in need of expert guidance, financing and growth, a startup accelerator programme would be a good consideration
- Join an Affiliate Programme
An affiliate programme is a relationship in which a merchant pays you (the “affiliate”) for links from your site (or with your registered affiliate code) to his site. While some affiliate arrangements pay according to the number of people who visit specific web pages with links associated with your affiliate ID or code, you get paid only when an actual sale is made by the merchant as a result of your link in some other affiliate arrangements. This kind of advertising is called Pay Per Action (PPA), since the affiliate isn’t paid just for the visits to the website, but only when a visitor performs a certain action on the website – actions such as filling out a form, making a purchase, etc.
There are thousands of websites on the internet that offer you the opportunity to make serious money through their affiliate programs. Very popular websites with highly rewarding affiliates program include but not limited to the following:
- Solvid Affiliate
- Rakuten Marketing
- WP Engine
- Liquid Web
In conclusion, lack of fund is not a reason good enough to kill your dream in the world that we now live in. Apart from the fund-raising options we have considered in this article, there are a host of other ways to raise fund to fund your dream today. Do not sit on your oars, get out there and access opportunities that exist.
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