Whether your company is selling shoes online around the world or offering a service to local real estate agents, there is one thing that all businesses have in common. They need money to operate. While some companies have or make enough to always cover their costs and grow further, this isn’t always the case.
Raising money for your company isn’t always simple, but technology (primarily in the form of the internet) has made it easier. The internet has provided us with many tools and different avenues to successfully get the cash our businesses need to not only survive, but thrive. With that in mind, this blog post is going to go over a few ways the internet can help your business raise the funding it needs.
Social Media Can Help You Make Connections
Social media is one of the best ways to make the connections necessary to facilitate the raising of money. If you click here, you’ll see there are different types of investors, and social media can help you potentially reach all of them.
With billions of people actively using social media, it is one of the best places to potentially meet your next investor. If you participate in conversations, build relationships, and show the value or potential of your business, you could be well on your way to finding an interested investor.
These are people you generally would have never met otherwise. Social media offers a unique way to connect with someone who might turn out to help save or grow your business. Of course, you need to know which social media platform to use, and how to organize your profile and content to attract the right investor.
Companies can also utilize social media to understand the types of investments being made, as well as the pitches your competition is making. Social media can also help you get the word out about your company. So even if you don’t make a direct connection, a potential investor could discover your company organically, and an investment or partnership could form from that.
The Modern Viability of Crowdfunding
In the past, many companies got their funding from large venture capitalist firms or banks. While this is still an option, there is another attractive option for businesses looking to grow. Of course, we are talking about crowdfunding. Crowdfunding helps millions of companies from all over the world raise billions of dollars.
Platforms like IndieGoGo, Kickstarter, and many others allow businesses to share their great ideas and plans with the world. This allows people from anywhere to help fund your business in return for a discounted product or other benefit or incentive. It helps you get the money you need, without having to give up any equity in most cases. In addition to getting you the money you need, crowdfunding can often be a great promotional tool, as well.
Makes Research Easier
While technology has made it easy for many small businesses to get the funding they need, it is by no means perfect. You still need to find quality investors who are legitimate and have strong track records. Not only that but you still likely have a lot of competition for funding in your space. Thankfully, the internet makes it easy to research not only potential investors but also your competition.
A quick search should help you find out more information about the person or company interested in investing in your business. This will help you identify their history, potentially their past investments, and what sorts of things they can bring to the table. Anyone can look like a viable investor in an email or two or on social media, but it is this research/legwork that will help you decide whether or not you bring them in or not.
In conclusion, technology can play a major role in helping your company to raise the funding it needs to thrive.