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How to Raise Funds for Your Ecommerce Site

how to raise money for your ecommerce store

Fund Your Ecommerce Store!

Are you a retailer looking to create your ecommerce site? With so many business tools around, you can have your fully functional online store in a few days. But, you may need to hire a team of developers and shell out of some money.

Below are a few steps you can take to raise funds for your Ecommerce website:

1. Start a Crowdfunding Campaign

In this day and age when everyone is online, you can find anything from people who would pay for overnight shipping to those wanting to buy your product. Therefore, instead of wasting time in approaching investors or banks, you could start a crowdfunding campaign on any good crowdfunding platform.

2.  Bootstrapping

Bootstrapping is the practice of building or growing something without outside help. You can bootstrap your ecommerce business by spending some time to build it yourself, rather than hiring a team of developers. Though you need to hire experts who would guide you in this process, still, the ownership will be yours. It will give you the freedom to set your own business rules, instead of following someone else’s.

3. Equity Financing

This is the most commonly used method of raising funds for your ecommerce business. You can approach an investor who would provide you with money in exchange for equity in your company. However, it is not that easy to get investors into your company; especially if you are starting out with little or no revenue.

4.  Raising Capital from Family and Friends

If you belong to a family having a business background, this might be the easiest way to raise funds for your eCommerce business. Plus, there is no situation of rejection which you may have encountered while asking investors. Instead, people would feel honored that their money has been chosen by you. Since they are close to you, you can  get money without any problem.

5. Credit Cards

Though it might seem like adding more debt to your life, you can actually get a credit card with an interest rate of 0% for up to 12 months. Plus, if the balance is transferred within the introductory period, then there will be no interest charges on that either. With cashback offers on online shopping sites, you can earn enough to pay off the credit card. Thus, with no interest charges for a year, your cash flow will become more positive.

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