Contributed post
People seem to view online businesses differently to ‘traditional’ businesses, in part because of the low cost to entry, but there’s a saying that goes something like “if you treat your business like a hobby, it will pay you like a hobby – and if you treat your business like a business, it will pay you like a business”.
The point being that so many bloggers and internet entrepreneurs treat their business as a platform for creative expression, which it is, but they get so caught up in the creativity of it all that they forget to focus on the business mechanics behind the blog – and that’s the thing. Your blog is a business. If you run it like a business it will pay you like a business; whereas if you continue to run it as a creative hobby, it will pay you like a hobby… and what do hobbies pay? Nothing.
Being an entrepreneur can be a great adventure but it can also be extremely challenging; indeed, one of the greatest challenges you’re like to face is that of financing your online business. Even though the costs are comparatively smaller than other types of business – the costs still exist, and you will need to invest in a content marketing toolkit where each app will run anywhere between $9 and $79 per month (e.g. www.sumo.com). Then, there is the advertising spend on aspects such as Facebook and Google Ads that often provide a great return on investment; but you do need the funds in place to begin with.
Okay, so let’s talk money. You may have heard the term ‘capital’ being used, which in this sense, relates to the amount of money required to get your business off the ground. It’s a good idea to write a list of all the start-up expenses you’re likely to incur, and consider the monthly cost of things such as hosting, perhaps a virtual assistant, and your monthly advertising spend.
Once you have a figure in mind, it’s important to consider the options for getting that initial amount – which will essentially require you to pitch for other people’s money.
For this reason, raising capital is rarely an easy task, and whilst it can be as simple as going online to somewhere like https://smallbusinessloans.co/ in order to apply for a small business loan – which on the one hand can be an extremely simple and efficient way to get your hands on cash when you need it, but it can also feel like a great burden to have a loan riding on the success of your online venture.
Here are three suggestions, other than getting a business loan, that you can use to fund your online business.
PUT IT ON A CREDIT CARD
In truth, the amount of money you actually need to start-up an online venture isn’t much at all, and as the payments are often monthly subscriptions, a credit card could be the perfect vehicle to help get you off the ground; just be sure to pay off the balance at the end of each month with the profit you’re making from your venture.
FRIENDS AND FAMILY
Borrowing money from a wealthy relative or a few friends can be a great way to go – but it’s important to bear in mind the potential strain it might put on your relationships should the business not turn out to be a success. The last thing you want is to ruin your friendships due to the financial side of things.
CROWDFUNDING
Crowdfunding, where strangers invest small amounts of money in reward for something that will be delivered in the future is a great concept, but is not as reliable or as immediate as getting a business loan, using a credit card, or borrowing money from friends and family