(Newswire.net — December 9, 2016) — Funding is among the biggest challenges faced by new entrepreneurs – and a very important one at that, since no business can survive without some form of financing.
Overcoming this challenge is tough, but just as it happened in most areas of our being, technology has positively influenced finance, and savvy entrepreneurs who know their way around financial technology (fintech) are finding business funding easier than ever.
You too can be a beneficiary of fintech; all you have to do is learn how to take advantage of the existing (and abundant) technologies in getting funds for your business. Here are 5 options you should consider:
1. Digital Platforms
From a general sense, there are tons of digital platforms that can help entrepreneurs get funds for their businesses, if systematically and effectively utilized.
One of the most significant advantages of digital platforms is the easy access to promotional and marketing channels online.
Digital marketing channels like social media, web, search engines, email, online video sites, among others, now make it easy to get word about your business out, and thereby get exposed to an infinite number of potential customers and investors.
They basically help you build your business at low cost to a level that it becomes very attractive to potential investors.
2. Crowdfunding
With over $34 billion raised via crowdfunding in 2015 alone, you can bet this powerful funding option is one every small business and startup serious about funding should consider.
Your business is in its early stage? You don’t qualify for a bank loan? You aren’t ready for venture capital funding – or just can’t get access to it? Friends and family aren’t helping?
Then relax, crowdfunding might just be the perfect way to go.
With sites like Kickstarter, Fundable, and Indiegogo, crowdfunding helps to get your project funded by raising monetary contributions from a wider pool of small investors with fewer restrictions. All you have to do is pitch your idea to the thousands of potential investors already on these platforms. Investments can be debt, equity, or rewards-based.
With this, you not only get the initial capital required to get started, but also have access to the very essential small business working capital.
3. Social Networking
Definitely worth being listed separately, social media has made raising funds for your business easier than ever, especially because you can now reach a wider audience of potential investors, customers, and other entrepreneurs.
All you have to do is hone your communication skills so that your message can be as sharp and succinct as possible when targeting the right people. Finding the right people – those who can move the needle for your business – on social media is definitely another major skill to develop.
There are so many ways to raise funds for your business on social media without cutting into your budget. Just know it’s about finding the right people and communicating smartly. You might also need some patience and consistency.
4. Freelance Websites
Freelance websites like Fiverr, UpWork, and Freelancer can be used to raise funds for your business in ways you might not have imagined.
First they help you find low cost talents for those areas of your business you don’t have the knowledge or resources to handle, thereby helping in ensuring your business is attractive to potential investors without breaking bank.
They can also offer vital business solutions like marketing and advertising – again, at low cost, which will expose your business to a larger audience, and therefore potential investors.
Lastly, they help you focus on more important aspects of your business, like building and fund-raising, while they handle other delegable aspects that would have otherwise taken your time.
5. Bitcoin P2P Lending Services
P2P (or peer-to-peer) lending is definitely one of the most innovative new financial services in the fintech sector.
P2P lending enables individuals or businesses to borrow and lend money through online services that match lenders directly with borrowers – without the use of an official financial institution as an intermediary.
Bitcoin P2P lending services like Bitbonds give businesses access to financing that they may not have otherwise gotten approval for by traditional financial companies or intermediaries.
Other than the above-stated, trading in Bitcoins (a digital currency) allows for tons of benefits for both the lender and borrower – amidst some considerable risks too.
It means borrowers now have access to funding from all over the world, with reduced transaction fees and receipt time, unlike traditional currencies and bank transfers. This is why this currency is attractive to crowdfunding sites.
Lenders also love P2P lending for many reasons, like the fact that the interest rate can be set by them and is fixed, unaffected by the performance of the stock market.
This is just a scratch on the surface of how Bitcoin P2P lending services can help fund your small business. It’s definitely an option worth considering, especially because of the potentials decentralized cryptocurrencies such as Bitcoins hold for the future.
Do you agree technology has made business funding easier than ever? Let’s discuss in the comments.