You are a fitness entrepreneur. Maybe you have been running your own company for a few years now. It has been filled with lucrative periods, as well as fiscally deficient ones. You understand the current financial position of your company and have decided that it is time to better that position. How is this possible when cash flow may prevent you from accomplishing this feat?
When we think about technology, what tends to come to mind are social media and member database platforms. Though social media and software are very necessary elements to both maintaining and growing your business, there are some uses for technology of which you may not be aware.
It does not matter if you are a personal trainer in need of a better ride to get from client A to client B's house, or a gym owner looking for new equipment or a larger space. Operating a successful business comes down to the same for everyone - money. Cash flow and how many liquid assets you have available to accomplish this business objective can make or break a company regardless of its size. Like the old adage says "it takes money to make money." Unfortunately, if you are a business owner then you understand this statement intimately.
Now-a-days getting a business loan is nearly impossible if your business is less than five years old or cash flow is a problem. So, the question is how can technology help? If you have a well devised plan and people who believe in you, then the battle is half won. There are several ways in which to raise funds via the internet. Some platforms on the web allow you to raise money for funding your dreams. Those ideas might include growing your current business or raising cash to start a new one if you have not yet made the leap as an owner. Crowdfunding may be an effective way for you to raise capital online.
What is crowdfunding? Crowdfunding is just like it sounds; it is money raised or funded by a crowd of people that want to help you succeed. It is associated with the term donation. The difference between crowdfunding and donating is that crowdfunding is tied to the JOBS Act, which has not been passed yet. Therefore, you can embrace this method of funding as long as you do not sell any stock.
There are a variety of sites to aid you in your funding efforts. Before you get started, do your homework on the best ones available and how they differ. SoMoLend, Kickstarter, IndieGoGo, and GoFundMe are just a few that provide this type of service. Each one works a little differently, but will allow you to start a project for funding and then track donations. Some sites function more as a collection-point for donations, while others track payback and interest due, like traditional loans. Fees vary from site to site and can range from 2-15% based upon the total raised. Not only does this give you an alternative to the typical personal or business loan approach to obtaining working capital, it is a great opportunity for publicity to gain market awareness.
Here are a few things to keep in mind when trying this approach.
- Have a detailed plan. You never know who may see your project and want to invest or donate a big dollar amount.
- Be prepared to demonstrate the viability of your business idea with a business plan that includes financial data.
- Market, market, market your project! Do not fall short of your goals by relying on the crowd funding sites to promote your idea for you. These websites can definitely help you with visibility and reaching a larger market, but you have to do the foot work to make it happen.
- Create a multifaceted marketing campaign. This should include regular posts to social media sites, a website or blog with daily updates of your progress and/or activities and a YouTube video that tells your story.
- Keep in mind that backing a project is more than just giving someone money. At the end of the day, people invest in you above your idea.
There are several sites on the web that allow for this type of capital raising opportunity. Once again, do your homework before getting started. To find out more about this type of technological opportunity check out http://www.hongkiat.com/blog/crowdfunding-sites/.
