Financing An Online Business
Financing An Online Business
Financing An Online Business:
Let’s Say That You Require $1750 To Invest Into An Online Business And You Have Done Your Homework and It Feels Right. You Know It Is Working For Others so why not you?
There is always fear of failure, uncertainty, risk and potential loss and we all know that in life and business.
But – there are certainly ways to create funding from the right types and organisations should you require it to help you get started.
The key is that we all want an R.O.I or Return On Investment as FAST as we can so that we feel at least we have broken even and hopefully increased what we make. So, we all want to get into profit situation of course; therefore a certain amount of research is required as is understanding the market and identifying our place in that market.
The point is that an investor is more likely to invest when they have a solid and robust plan in front of them, as they can also see financial projections, your vision and message, your UVP, SWOT analysis and executive summary to name but a few areas of a Business plan. So really the first area tp be aware of is in getting help to create a sound plan otherwise you are quite unlikely to receive an investment from anyone.
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The next point i want to make is in using right investors. What I mean by that is – if you borrow money from your pal Bob or your Mother or someone whom you know but also who probably have no idea about business then it could cause a great deal of pain moving forward.
When you think about it – Bob or you Mother may lovingly lend you £3000 in the hope that you make it, but also in the hope that they will get back their investment or a % of the business takings. It all depends upon what deal you wish to create.
Banks and other organisations can lend you money also once they have seen a solid plan, but my preferred option is lending from an experienced business investor. This means a person who has experience particularly in the area you are getting into or something similar. Why? Because they simply know what to expect moving forward. They know and have been there and may also act as a powerful tool for you as an expert in their field.
There are also other organisations whom you can approach one you have put in the ground work. I cannot stress enough though that there will always be inherent risks in borrowing money; so, you have to be sure about the area you are getting into beforehand. Seek help from a professional every time before you go throwing any money at anything.
I know from experience also, as I used to throw money at many things and HOPE that they worked. Very often they didn’t because I hadn’t done my homework, or the company went bust or any number of other reasons. I learned in the old days the tough way.
It wasn’t until I invested in myself and my education did I start to see the good changes happening.
So, another tip here is – you may want to build a business online and create a solid brand, and this way you know what you are worth and the value you can bring. It is less risky than simply buying a business which isn’t yours. It could be here one moment and gone the next.
But hiring a professional Coach.
Here is a list of lenders and ways of lending so you can first become more familiar with what is out there, but be warned, I don’t recommend just applying until you gave created your plan and got it checked by a professional first:
Financing An Online Business
MONEY SUPERMARKET BUSINESS LOANS CHECKER
PORTMAN FINANCE BUSINESS LOANS
7 UNUSUAL WAYS TO FUND A BUSINESS
KICKSTARTER CROWDFUNDING FOR CREATIVES
GRANT OR LOAN?
What’s the difference?
Simply – Grants are non-repayable funds or products disbursed or given by one party, sometimes from a government department, corporation, foundation or a trust, to a recipient, often a nonprofit entity, perhaps educational institution, business or individual. a Loan is a thing that is borrowed, especially a sum of money that is expected to be paid back with interest, however this depends upon whom your borrow a loan from.
If it is a friend or family member then sometimes no fees required – as it could be from a loved one lending you a loan.
You can apply for grants depending on your situation and business type if your business, venture or enterprise is deemed fit for a grant.
To learn more you can get in touch with places such as MY COMMUNITY HERE OR GRANTS.GOV
This is an area you would need to explore in greater depth to determine your eligibility.
Financing An Online Business: Did you know that desire always finds a way?
If you really want something you can find a way of getting it, but that doesn’t necessarily mean that we need to borrow money.
I personally made an income using eBay, which paid for my Business Coaching education
So, if you really want something and have a passion for it, then ‘you will be able to get it’ one way or another.
There are ‘ways to get what you want’. And I am a person who never stops at NO! I don’t believe in what many call impossible.
Being creative when looking for what you really desire is very important and it is essential to your being an entrepreneur and gaining more success. Not just in funding but in all areas. Sometimes there are no other options but to be creative. We can also tap into our intuition more when our logical or rational minds are not coming up with solutions.
Did you know that Sir Richard Branson, Bill Gates, and Donald Trump (even though I am not a Trump Fan) have all used creative ways of Financing Businesses. Right At The Beginning of their business lives they also HAD TO USE LEVERAGE. They had to BORROW MONEY.
This is a way that you can LEVERAGE YOURSELF YOUR BRAND and create a great name and reputation by leveraging your marketing budget in order to build that exposure, even before you have made single $.
The problem most people have is this > THEY DON’T WANT TO INVEST IN THEMSELVES AND THEIR OWN SKILLS.
They look for the $ signs outside of themselves and will say stuff like ‘I WANT TO MAKE MONEY’ Without thinking anything through.
That’s why I got creative and started an eBay business and owned a traditional cleaning business in order to fund my Business Coaching and Life Coaching qualifications. So you see – I borrowed from one and invested into another new business.
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I knew my goal and so got creative with ways of how to fund it.
Financing An Online Business: Money Doesn’t Grow On Trees But You
Sure Can Borrow it!
So, are you ready to turn over a new leaf and branch out a little, or am I barking up the wrong tree?
OK OK! I will never win awards for humor. Forgive me.
Financing An Online Business
Let me tell you that I have both borrowed from investors and from myself.
But i never ever borrowed a single dollar from friends or family.
It’s a bit like keeping your business accounts and affairs separate from personal accounts because, if something should go wrong (or as I like to put it ‘turn out unexpected’ as I don’t believe in wrong, I just believe in growth), then I won’t have ruined my entire life.
As long as you commit to research, going deep and narrow into markets, drilling down into both pro’s and con’s and understanding the market you are entering into, then you will certainly help your situation moving forward.
Sometimes we just have to take a leap of faith once we have done what we feel is enough and we know our ambition to follow through with our goal. By creating polls, surveys, questionnaires and so on we can gather all the information and data.
Here’s A Simple Example Of Financing An Online Business:
1) You research The Area You Want To Be In. YOUR PASSION! NICHE!
2) Find other experts in this area and contact them. LEARN ABOUT THEM!
3) You Find and Explore Ways To Borrow The Money To Invest Into This Area (as I mentioned earlier)
4) You Invest Into The Area And Work Your Butt Off to achieve R.O.I. as soon as you can
5) You Make Back The Money whilst you also measure and monitor your increase
6) You continually work alongside your team to reach each financial milestone
7) Then you start to create a cash flow. The total amount of money being transferred into and out of a business, especially as affecting liquidity. CLICK HERE FOR FREE DOWNLOAD TO HELP YOU CREATE CASH FORECAST
8) Then there are Cash reserves which are funds that companies will set aside for use in emergency situations. The cash that is saved is used to cover costs or expenses that are unplanned or unexpected. Businesses generally use their company bank account to store money saved as a cash reserve.
FACT: It Takes some Money To Make Money. I don’t know anyone who has got something for nothing, do you?
You cannot expect to create any amount of revenue without first putting something into it. The caveat to that is the kind of situations when you have a windfall, find gold, have antiques or something left to you to do with what you will. But of course, many of us don’t have such things, so we first have to put something in to get it out.
A friend of mine is a freelance sales executive, so he will make sales calls and get anywhere from 10-70% commission sometimes even 100% for his work, meaning HE IS the VALUE. But, he has had to train and refine his technique over many years in order to become one of the best at what he does. What I am saying here is that – sometimes our training, experience and education can pay us and so we can become the product or service and thus create a great income as we are of value to others.
So you must get used to the fact that ‘if’ you want your own business to be growing and developing successfully YOU MUST INVEST IN THE RIGHT TOOLS to become your best. Cutting corners and costs just to save could jeopardize the whole thing. Therefore – you must know where to put your investment.
Something I have seen many times from Small business owners is when they let go of valuable staff or team members for cost purposes, but those individuals and roles bring in the greatest share of revenue to that business. But, owner/operator believes they can do the role of another who is far more experienced. This can cause failure, or struggle when this could have been avoided, so cutting back has to be considered very carefully.
So, with leverage – you either have to borrow it from someone or from an establishment in the first place, work to master a skill, or you had better have some savings put aside specifically for business growth! As I said earlier, you may be able to USE yourself to raise capital and i friend of mine taught English to do exactly that.
Financing An Online Business
Financing An Online Business: A HA!
Financing An Online Business: IDEAS FOR BORROWING:
(DISCLAIMER: Remember that are Ideas ONLY!
I am not saying you should do any of this I am just Sharing What I Know and have done for leverage that’s all!
Make sure that you don’t get yourself into any trouble as I am just a guide as to what might be of use to use.
You would need to look at your own life situation and what would be involved in finding-creative-financing and then make some decisions based on that.
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Possible ways to also create some leverage
1) If you are able borrow money off of a very good friend or family member who is prepared to accept the risk of LOSS then you can maybe borrow it INTEREST FREE! So you can borrow a loan or grant off of a person you know and trust and pay it back in an agreed timescale. JUST DO YOUR HOMEWORK FIRST and get it in writing!
2) Consider a Bank Loan. Do your research and look for the best option when you approach this area. There are many banks who will happily lend to you depending on your credit rating and other factors. Explore several business banking options and talk to them before you commit.
3) Do you have a 401k? Or any other kind of pension? Maybe you have premium bonds? Can you draw down on this early? If you can get access to it and you may be able to secure a greater pension fund for when you do retire. Be very careful how you do this and please take financial advice.
4) Is there anything that you can sell? People who have real desire and are true entrepreneurs have been known to sell almost anything. They have a skill for making money. I used eBay, fiverr, writing and editing, sold many other items where I have built savings to re-invest. Use what you have got.
5) You can be committed to yourself and your family and ensure that you are secure with your home and if so maybe look at borrowing off of your mortgage. This is something which you may not be able to do but it is very powerful if you can. Again be very careful that what you borrow won’t be spent on liabilities but will be used to create assets. Liabilities don’t make you money they get you into further debt. Assets grow your wealth.
6) If you have savings or money invested into something else then look at borrowing from another source of yours. Maybe you have shares or some kind of stocks or Forex income?
Again: I am not suggesting you risk aimlessly but rather you create a calculated risk.
Financing An Online Business
Financing An Online Business:
Do remember, that these are just ideas that I have heard about and have also used and applied myself. I have personally taken primarily savings to get my business up and running, but I would say that you have to be savvy and responsible when you are doing your sums.
Always make sure that you look at all of your numbers before you invest and make sure that you do your homework when looking for the right business and market – but most importantly TAKE ACTION. Do something.
Nothing is ever achieved from just dreaming.
We need to take consistent action towards our goals and make our dreams a reality. Life is way too short not to follow your passions, so whatever your’s are, create a way in which you can express this passion with the right target market and demand.
Financing An Online Business: You have to know that you are ready for the business you want to be in.
Not everyone is cut out for business because it takes a certain kind of person who can think differently than an employed mentality.
The last thing you want to do is to jump out of a secure job and income only to find that you hate working your ass off for yourself
So, really sit down and look at all angles before you make any rash decisions.
Never leave a job with nothing to replace it if you can help it. Create a salary or draw for yourself in your business. CLICK HERE TO READ QUICKBOOKS ARTICLE ON BUSINESS OWNER SALARY
HEAD FIRST
Remember that we can easily be taken away by our passions. We can get carried away with dreams, but when we strip back the layers and look at the component parts with logic we can see if something is really worth it or not. For example, if you enter a saturated market and want to start a burger joint on a street full of burger joints then the chances are that you will probably fail because you are not offering something different, unless you can sufficiently come from a unique angle and position whereby you stand out and perhaps care more and have a funky brand.
Make sense? So, always consider each part before you borrow any money.
This is why a great Plan (even though it may change over time) is a great place to start. We can never predict the economy and the future of anything an d trends change, as do buyers, consumers and market needs and demands, so my point is, just be savvy and aware.
So – take your head with you – as passion alone is not enough.
Every business whom I have lovingly helped to develop and grow have had to have owners, founders, leaders, operators and so on who are 100% focused were and are fully committed with applying what was necessary throughout the process and moved through challenges and obstacles.
Online business owners who succeed also know that a role which supports their best working style and strengths will enable them to be effective and work on the most important tasks every day.
I believe, we can create a great living and purpose driven life – and this is really about knowing that you are going to be able to make a real difference in which impacts on the quality of your to your life and the lives of others, through making better decisions we can create and shape better lives.
No matter which type or model of business we undertake or what structure we build – we need to be fully leading that operation with the right team players whom share our vision and passion as much as we do.
NOTE: Consult your financial advisor and accountant and listen to what they have to say about leverage and Financing An Online Business or any other business. You may wish to run a 1 man or woman enterprise or venture, or you may wish to employ a team of 50. So, look into the implications of size and structure with an expert.
It is important that you can create access to ALL of the right support or teams – where you can rely on others roles and their strengths before you make life changing decisions about ‘what’ you will being doing. Plans often change and that’s a part of being able to face the unknown, but remember that if you really want the life by your design and perhaps the flexibility to live your life more on your terms then you may wish to consider an online business model
GOOD NEWS The good news is that an online business startup doesn't need to necessarily be that expensive. Especially if the products is YOU. With my coaching I am the brand, the product and the service, so technically I don't need much to work with. A laptop, expertise, access to the internet, positioning, clients. The point is - it can be way way cheaper outlay than trying to start a more traditional business model. Cane you see that? So, perhaps this is more the kind of business for you? To learn more contact me @ www.GregDeTisi.com anytime to talk about creating a strategic plan to get you started in this space. As I said - you can start lean and risk less in this space if you think you have something of value to offer, deliver and share.
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You Can Do It!
Hey Thanks For Reading This, I Hope That You Enjoyed it!
Feel Free To Share It With Your Friends!
As always – I wish you the very best with your decisions
P.S If you want some help with defining your passions and the best ways you might express them get in touch.
You can book a 1ON1 Session with me to create a Plan which is fit enough to move your forward and sharpen your vision into a reality
CLICK HERE TO BOOK A FREE STRATEGY CALL WITH ME OR TO BUILD AN ONLINE BUSINESS AS A COACH
START MY PASSION TO PROFIT SELF STUDY COURSE HERE FREE TO EXPLORE YOUR PASSIONS
Financing An Online Business
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