Letting the Internet Fund Your Start-up

Due to the immense commercialisation of the internet, people are now able to do almost virtually anything on it. Order your food online, pay your taxes without those annoying tax mistakes, and even start a business. The Internet is the biggest invention of man that has transformed every other industry it comes into contact with. It is the most convenient way to send and receive information across the whole world.

But let’s say that what you need is money. Can the Internet give you that? The answer is “YES!” There are many ways to gather money on the internet, especially when you’re trying to set up a new business. For example, you have this great idea that you know will make a good business, but you don’t have the capital for it. The Internet can help you gather the necessary amount to start that business. In fact, many people have done so and have already succeeded in making their businesses able to compete globally.

But say all you wanted to start was a muffin business: you bake muffins and deliver them to people and take orders from calls and online and that’s it. Can the internet provide cash for this? The answer is “Of course!”

Getting Started

Before you start gathering funds you have to first identify the two ways to get funds here: first, there are companies that lend you money other than banks. You can hear some bad things about them but they’re actually quite reliable. The other way is to e-beg. Now I know some of you are too proud to beg, but Internet begging isn’t actually real begging when you’re trying to start up a business if they, the donors, get something in return, which is usually the case anyway.

With these two methods, you can easily gather all the funds you need to start up your business. Each method has its own pros and cons. You can pick doing just one of the two (whichever seems more convenient for you) or both to speed up the process.

The risk here is that this is the Internet. If something goes wrong (for example, you mess up and make a lot of people angry) the Internet will always remember, and you might just see yourself barred from ever using these options again. Also, if you do mess up, do not hide your mistakes; admit them. The Internet is actually more merciful than the courts and if they see you are being honest they might give you a second chance.

E-begging

The greatest thing about the Internet is that it’s so big that you’ll always find an audience that’s willing to listen to you. This includes businesses. Many people have taken advantage of this and have started to use it to start their own business. Artists ply their works on their websites while asking visitors to donate to their e-begging accounts. Some started their business asking people for money, in exchange they give the donors their product; that’s the usual scenario for small-time businesses on the Internet.

And you can do this too more easily if you have some kind of product and service that you can offer to your donors. Just as there will always be willing audiences to listen to you, so there are people who might be interested in what you can offer. Portable water filter for traveling to third world countries? No sweat, that got funded. Portable water electric generator? A Japanese anime movie? Comic books? Yes, these things get funded all the time.

All you have to do is set up your account on some e-begging site, tell them why you need the money, what you plan to do with it and you’re good to go. There are downsides to this method though. First, you are relying on the people’s good graces. They might actually be interested but if they don’t have money to contribute, they won’t contribute. Another problem is time. It might take days before word gets out about you, so make sure you advertise and promote your idea to family and friends. Ask them to help you out by sharing your project with their own friends and the people they know. The time problem is especially troublesome when the e-begging site needs you to set a goal amount and a deadline. If you fail to get the goal amount before the deadline, even if there are people who contributed, those donations will be sent back, and you won’t get a cent. It might be best if you don’t use such sites. Try the biggest because they fund things faster.

The good thing about this is that you’ll see if there really is a demand for your product or service. You’ll be able to see how many people are interested. These people could even be your very first customers. If you do get your project funded, congratulations.

Loans

Loans are simpler. You sign up for their site, apply for a loan, give them your info, and you’ll get to borrow money as soon as the next business day. This is very easy and much, much faster than e-begging. However, unlike the first method, instead of giving products and services back, you pay back the money you borrowed, plus interest. This method is especially handy when you really need to have the money quickly. It’s fast and easy funds for your business, what’s not to like?

The disadvantage, however, is that you now have a debt to pay. Luckily, however, some offer 12 to 24 weeks-to-pay plans and the interest isn’t all that big.

Conclusion

If you don’t need the money immediately, then choosing to do the first method might be the best for you. If you need the money now, loans are your only option at this point. If you play your cards right, you may even be able to use both to gather funds faster and, finally, get started with that new business