Ever heard of a single item, being sold free of cost without spending a single penny? In this material oriented world nothing could be bought without spending those bucks. Similarly in case of online business also you will have to spend a significant amount based on various dependencies. But yes, it could be less than what you spend on the infrastructure, resources, mortar and bricks shops and other pre-requisites of a conventional business. The costing or the finance would depend on the requirement and motive of the project or business you are planning to expand. For becoming a successful brand like Google and Amazon.com, you will have to spend or invest more capital than the usual ones. However, one must not forget that Rome wasn’t built in a day. So to begin with you need to build on fragments and keep aiming high!
Some of the instructions which one should follow before moving ahead with the financing of an online business are-
1- You will have to write a specific online business plan. The plan should cover all the aspects with respect to the business in which you would be describing about the services and the products which you would be catering to and the target audience and market should also be quite clear. There should be no confusion while implementing your ideas. With regards to the financial section you will have to provide the details with respect to the current financial status and the estimated costs for running the business and the expected projection of the project. In case you are approaching the banks or any other medium for sourcing the funds for your business, then you should ensure that you are attaching the copies of the brochures, licenses, details of the websites etc. so that they could get an insight of your working and they could value the idea and plan their funds clearing activities accordingly.
2- For initial investment you should try to utilize all the current assets available with you or take out an ISA, equity of your home or valuables which could be sold or could be used as the collateral. Most of the lenders do consider direct investments from your side as well.
3- For borrowing the money you could use your credit cards, but surely you should be careful and ensure that you don’t get deep into the debt by taking the loan. For obtaining the loan you should have a strong business case and goal of your business. You must be able to provide records of your credit worthiness, filling out the paper work et-al. In case your entire business is online in that case you will have to prepare the presentation or the visual aids which could help you showcase your strong points.
4- You can even seek help of local authorities or Government organizations who can provide you details about the funds permission from the grants. Grants are provided to specific businesses which are related to technology or those focusing on the minority areas or the regions. According to the grants you will have to create the proposal according to your requirements.
5- There is a plethora of websites working across the world, for lending funds from peer to peer. Such lenders generally ask for lower rates than the financial institutes or banks. But they look at receiving higher returns on the principal amount and sometimes involve unethical ways to receive the returns. So read carefully between the “microscopic lines”.
6- In some cases you can even purchase a used domain and site with higher page rank (PR) which has been already created and customize it according to your requirements. There are many companies who offer such sites on easy installments as well; in such a scenario you will have to decide which option you should select.
Having said the above, the fact still remains that if you are a newbie to the online business world, financing your venture can make you run corners unless you have good financial backup or other avenues from your previous ventures. However once you have established your online business getting returns will be only a matter of time!