Over the past decade, more people have started their own businesses than ever before. The main problem all start-ups face is financing their projects. These are methods to help your start-up attract investors or to finance it via other means.
The most powerful tool available to start-ups and major corporations alike is social media. With the touch of a button, entrepreneurs are able to create campaigns on social media to market their business. Socialgreg helps entrepreneurs grow their social media presence to expand their reach.
You may be asking, what good is marketing a start-up without financing? Well, these are several methods start-ups can increase their capital using social media:
Maint online platforms are available in which the target audience can pay small amounts as a way to raise money for an event or a business. The most well known example is GoFundMe. In this case social media can be used in conjunction with crowdfunding platforms in order to reach a wider audience for a larger capital. With $34 Billion raised through crowdfunding platforms online, and a high success rate – it is no on wonder this is the most popular
- Membership services
Websites like Patreon give content creators a way for their followers to pay for a subscription to their content. Some start-up companies utilize these types of websites as a way to get a loyal following and a source of capital to work from. Many social media accounts ask for patreon subscription for premium content they provide.
- Angel Investors
Social media can be a gateway to finding investors who are willing to finance your project. Many well known entrepreneurs have employees that search for start-ups with potential, so they can help finance them in the initial stages. As is expected, they also search social media platforms for businesses to elect for financial help from their superiors.
Many social media content creators sell merchandise on their pages, and start-ups can sell products prior to their launch at a special price in order to finance production in the initial stages.
Although they may seem outdated, some traditional ways to finance a start-up are still viable. These methods can also be combined with social media to further increase the chances of finding adequate investment.
- Find an investment bank for a loan
Many banking institutions are made for the purpose of financing start-up businesses. You should try to contact these institutions and apply to them directly.
- Find a silent partner
If you are willing to share the revenue of your start-up, a silent partner is a viable option to finance your business. A silent partner is one that provides financing in exchange for a portion of the revenue. They are generally not involved in the daily management of the business. Also, sometimes the burden of losses is shared, reducing the risk you need to take as an emerging business. Silent partners are also often available for advice.
- Personal Investment
If you have your own savings (however small) you may be able to invest in your start-up idea by yourself, and expand on the business via investors later on. Although your capital may not be as much as you’d hoped for, this method gives you more control of your company as there are no other parties to weigh in on any major decisions, and pressure you into decisions you do not completely agree with. However, it should be noted that this is considered a risky endeavour.
Although the above methods are traditional and do not necessitate the use of social media; using those platforms to find investors is also an option. Additionally, in today’s market, start-ups with significant social media engagement from their target audience are seen as more likely to succeed – thus increasing the chances that traditional financing avenues can lead to a successful launch.
With the right strategies, entrepreneurs can bring their start-up products or ideas to market in a relatively short time. Whether using traditional or modern methods to finance their projects – a social media presence is a must.