Whether you are selling SaaS solutions or starting an online retail shop, you will need time and resources when setting up an online business. When it comes to finances, you should have enough cash to serve as your starting capital. However, you still have to consider where to get extra funding in case you lack cash in the bank. Your savings and personal finances might not be enough to cover the initial costs of starting your online business, so you will need to look for other sources elsewhere.
Fortunately, there are other more effective ways to help you kickstart your online business even if you have no money to set aside.
1. Get a small business loan.
Many startup founders and fledgling entrepreneurs could benefit from government-sponsored lending programs that target small-to-medium businesses. In the United States, you can take advantage of small business financing programs under the Small Business Administration. Depending on your financing needs, you could get SBA loans of anywhere between $50,000 to $5.5 million with repayment terms of up to seven years. If you are only starting a small online business, you could secure a $50,000 microloan which is more than enough to launch your online store.
2. Use a crowdfunding platform.
Do you have an idea that has the potential to improve lives? Consider presenting the concept to a wider audience and get eager people to contribute just to see it on the market. Through crowdfunding platforms like Kickstarter and Patreon, you can pitch a great idea online and ask for donations from interested individuals looking to take part in establishing your online business. You just need to make a compelling pitch by adding a video presentation of your idea and the benefits it could bring to your niche or target market.
3. Take out a payday loan.
Aside from conventional loans, you can also look for alternative loan options that are ideal for business owners looking to start small. Payday loans are ideal for young entrepreneurs and everyone else looking to enter the world of business with little money in their pockets. Even if you have a bad credit score, you can still apply for a payday loan and receive the money in just a matter of minutes. You just need to look for a legitimate payday lender who can help you secure the funding you need for your business. If you are based in Ontario, consider lenders like My Canada Pay which offers manageable short-term loans.
4. Get friends and family members to help out.
You don’t have to look far to look for the funds you need to start an online business. Sometimes, you just need to ask for help from your inner social circle which consists of your relatives and friends. Reaching out to them is a great way to access available resources without having to pay interest. In turn, you can recognize your family members and friends as partners who will get a share in the profits.
Starting an online business doesn’t have to be complicated. You just have to know how to secure your initial investment and get things rolling!