Your business is meant to make you money, but it likely won’t turn a profit for the first few months, or even years. Businesses need capital investment to pay the bills in the early going. This article will list many sources of business funding, then explain the common factors in winning over investors.
This article is part of a series inspired by the YouTube video, “7 Leverage Tools The Rich Use To Make Money,” by The Better Men Project. It covers Tool #3 listed in the video, leveraging other people’s money. Understanding how the very wealthy get to their positions can help common people prosper in ways that are fair and equitable.
Freelancer.com published an extensive list of ways to finance a business (“Funding Your Startup.”) Some of these methods have very strict standards, while others require the ability to pitch ideas and sell yourself.
Bank Loan/Line of Credit: This is borrowing money to fund your business, and paying it back later with interest. Loans require detailed business plans and regular payments. Lines of Credit are like credit cards; they give you a reserve of money to use as you need it, and only pay back what you spend. Both loans and credit lines usually require you to have been in business for a set length of time, and already making revenue.
Grant: A grant is a gift or subsidy that doesn’t need to be repaid, offered by governments, corporations, and other large institutions. They’re usually given to achieve a certain purpose, and are common for nonprofits and scientific research. It’s standard practice to write a grant proposal, and grant writing is a booming business in itself for freelance writers.
Peer To Peer (P2P) Loan: This is like a cross between a bank loan and crowdfunding, in which a group of investors pool their money to loan to a business. The Freelancer article mentions Upstart as the standout example of P2P Lending platforms.
Credit Card: Similar to a line of credit, having a credit card lets you spend what you need and only pay that amount back. It requires you to have a decent credit score.
Angel Investors: These are high net worth individuals who invest in a business. They then have equity in the company and are entitled to part of the profits.
Venture Capitalists: Whereas angel investors are individuals investing their own money, a venture capital firm is a business of its own representing its investor clients. Both venture capitalists and angels are very picky because of the huge numbers of startups pitching to them.
Crowdfunding: This is raising money from large groups of people. In some cases, it’s charitable giving; in others, investors get perks in your business or preorders of your product; in other cases, investors get equity in your business like angels and venture capitalists. Today it’s common to crowdfund on online platforms like Kickstarter, IndieGoGo, and GoFundMe.
Friends and Family: Pitching to your social circle can be very informal, but it’s best to have a clear plan like in the other methods.
Draw On Retirement: In the United States, one can draw business funds from their 401(K) or IRA (Roth IRA’s are ineligible.) You must set up your business as a C-corp, be employed full time by it, and have $50,000 or more in your retirement plan.
Microloans: These are small loans, originally started for entrepreneurs in developing countries, but now available elsewhere. Microlenders are nonprofits and tend to serve disadvantaged groups and individuals.
Presell A Proof Of Concept: This is for when your business sells a product, and you get customers to pay for it before it’s made. This is different from crowdfunding in that it’s one-to-one selling. You must deliver your product on schedule and in good quality.
How To Pitch To Investors
Loans, lines of credit, credit cards, and drawing on retirement necessitate previous income history. To get funding from angels, vc’s, grants, and crowdfunding, you need to develop your pitch strategy.
Be to-the-point and clear on value: As I mentioned earlier, your business’ value is the focal point of the pitch. Experts differ on how much detail to give in your presentation, but it’s best to lead with value and have your other points support it. (Related: https://xiphoswebmarketing.com/value-the-edge-of-your-sword/)
Great content: While you must be clear on value, the way you express it should engage the investor. You’ll need to read the room; some investors are very serious, while others are personable, and others appreciate humor.
Social proof: Similar to marketing to the public, pitching to investors can benefit from social proof. This can take the form of experience in a related field, testimonials from earlier customers, and endorsements from influencers.
Know how big the market opportunity is: You need to research your potential market and find out how many customers you can sell to, and for what price. Market research happens to be a built in feature of crowdfunding, as a way to gauge the public’s interest.
Incentivize your audience: This should be obvious, because investors expect a return, but explore extra ways to sweeten the pot. This could be additional perks for sharing your business with others, partnerships with other businesses, etc.
This article will explain how to hire a freelancer for your business. Even if you’re a solopreneur working out of your spare bedroom, your business can benefit from outside freelance help. The nature of work is steadily moving to an on-demand model, away from the traditional employer-employee framework. Individuals like the flexibility of being in business for themselves, and businesses can save money hiring for projects rather than year-round work. Also, a freelancer has skills in a field that you may struggle with. Outsourcing troublesome tasks will enable you to concentrate on what you’re good at. Freelancers even work for other freelancers by subcontracting.
This article is the first in a series inspired by the YouTube video “7 Leverage Tools The Rich Use To Make Money,” by The Better Men Project. Hiring a freelancer can cover Tools 1 and 6 mentioned in the video. At first, I found the wording used in the video to be distasteful, but understanding how the wealthy get where they are can help other people prosper in more equitable ways.
Determine The Scope And Requirements Of The Work
The work you need done must be made clear. This includes the project’s goals, milestones, deliverables, and timeframe. Factors can change as the project progresses, so set some rules between you and the freelancer so neither of you get cheated out of time or money.
Assess What You Can Pay
No one likes a cheapskate. Because of the Internet, there are freelancers available in countries where the cost of living is cheaper, therefore their rates are lower. But often it’s beneficial to hire someone in your own country, because of shared culture or shared local community. In any case, if your freelancer feels your fees aren’t worth their time and effort, the project will suffer. Your business project is an investment, and you should treat it like that. Consider using credit to pay for the work. I wrote an article about funding sources for small business that you can read here.
Search Your Network And On Freelance Websites
Your first step in finding a freelancer should be asking for referrals. Ask people in your industry, community, and on social media who they recommend. Freelancers are in business for themselves, so they might have their own websites that you can find in Google search. If those options run out, that’s when you go to freelance websites and job boards.
The biggest freelance sites are Fiverr, Upwork, and TopTal, but there are many more. Hostinger.com lists the best for freelancers to find work in this article: “18 Best Freelance Websites To Find Work In 2020.” Generally, Fiverr is a budget site and good if you’re a solo businessperson with a limited budget. The rest are for small to medium-sized businesses with multiple members. When posting your project, go back to your notes from determining the scope and requirements of the project. The more clear and specific, the better.
You should narrow your search to 4 or 5 candidates. You can do this by reading their reviews on the job websites, reading their testimonials, or viewing their portfolios. If a freelancer is new to the business and wanting to prove themselves, they might put out a blog post or white paper demonstrating their knowledge.
Interview And Negotiate
Sometimes you can treat the candidate interview like you’re hiring an employee, but you should remember that freelancers are in business for themselves, and they’re interviewing you, too. It’s possible they see you as a prospect to sell their services to, and they’ve been in talks with you and other business owners for some time. Read my review of David A. Fields’ book to see the independent contractor’s point of view (“How To Get Clients: 6 Steps From An Expert.”)
It’s important that you and your freelancer are compatible, in more ways than one. Their qualifications are vital, but perhaps even more important is their personality and how well they work with others. Treat the interview like a conversation when you hash out all the project details.
When you decide on someone, the project scope, requirements, schedule, and fees must be put into writing. You and the freelancer should record this while you’re searching for each other and during the interview. Compromises can be made, as well as contingencies for the unexpected, but the terms of the deal need to be explicit and spelled out so there are no regrets (or lawsuits) later. If the project costs more than $600, you’ll need to provide a 1099 tax form to the freelancer.
You’ll be surprised by the variety of jobs freelancers can fill. Follow the affiliate link to Fiverr below, and browse around. You may even be inspired to start your own freelance career.
This is the final article in this week’s series on video conferencing software. Discord is a freemium web application that combines text chat and forums with video and voice chat. It was created with gamers in mind, but is steadily growing as a solution for creating other types of online communities. This article will explain how Discord works, and how to use it in your business. Discord is an appealing alternative to Slack as a team collaboration tool. Also, online content creators like YouTubers and bloggers can create communities for their followers and make money in the process.
How Discord Works
Discord is free, with 2 premium versions, and can be used in a web browser or standalone app on PC, Mac, smartphones, and game consoles. Its communities are called “servers,” and a user joins one by being invited or creating it. Discord is not a social network in the same sense as Facebook or Twitter, but there are separate websites for finding new servers and making online friends. You can also connect your Discord account with your profiles from other social networks.
Servers are divided into “channels” which are created by community members, and center around different topics. There are channels for forums, text chat, and video chat. The servers you belong to, and each server’s channels, are listed in a menu on the left side of your screen. Servers require moderators, like forums and message boards in years past.
Digitaltrends.com goes over the text, voice, and video functions available in Discord (“What Is Discord?”) Texting is the simplest, by which you type messages in the bottom of the main content section. You can also upload images, GIFs, links, and outside videos. To use voice chat, you enter a voice-enabled channel, or click the telephone icon in your friends list.
“Go Live” is the video streaming feature in Discord, and it must be enabled by the server’s owner. Then, a server member can click the Go Live button and share his or her screen in a channel’s main content section. Other members can watch the streamer by clicking the “Join Stream” button.
On May 14, Discord’s official blog announced Server Video, a full-fledged video conferencing option in response to the COVID 19 pandemic. Before, video chat was limited to 1-on-1 direct messaging, but now up to 25 server members can have an online meeting a la Zoom or Google Hangouts.
There are 2 premium versions of Discord called Discord Nitro ($10 per month, or $100 per year) and Discord Nitro Classic ($5 per month, or $50 per year.) The main benefit of these upgrades is improved video quality over the free version. They also include fun treats like exclusive emojis and artwork.
Using Discord For Business
As mentioned before, Discord is like a casual counterpart to Slack, with the added bonuses of voice chat and video. Users can organize inside their servers to take on projects or get a multiplayer gaming party together. How-To Geek compares it to Slack and Microsoft Teams, and notes its pros and cons (“Is Discord Right For Your Business?”) The first problem is your organization doesn’t have exclusive rights to its content in Discord. If you have confidential or vital information for your team, there’s no guarantee it won’t be deleted if Discord chooses. The article concludes it’s better for communication with the public rather than internally in a company.
As a public relations/marketing/community app, however, Discord is great. Game developers make their own Discord servers to interact with their customers. Also, as I mentioned in an earlier paragraph, many YouTubers, Twitch streamers, and bloggers are turning to Discord to further serve their audiences.
There is a market of 3rd party extensions for Discord called “bots,” and they can be found at https://top.gg/. A very popular one is the Donate Bot (https://donatebot.io/) which lets server owners make money. The Donate Bot links to one’s PayPal account. A content creator can publicly share their server’s invite link, and either charge for admission or collect tips from members.
Because of the limited viewer count in Discord Server Video, Discord is not suited for marketing webinars like Zoom is. Discord is better for more close-knit community building, so as to encourage trust and customer loyalty. A server probably places in the “Like” and “Trust” phases of the marketing funnel. There are better apps for internal project management and growing initial brand awareness, but Discord is great for deeper business/customer relationships.
Google offers 3 different services for video conferencing: Google Hangouts, Google Meet, and Duo. This article will help you tell them apart, and whether any of them can help in your online business. As you will see, Google’s products are in transition, so users should always be prepared to adapt.
Google’s conglomerate runs many successful businesses and apps, but it has created many more that failed or have been phased out. This is the same for other tech companies including Facebook and Amazon. Businesses must always try new things and not give up if they don’t work out. We’re seeing many industries and brands collapse because they didn’t change with the times.
Google Hangouts is a free video chat service available to users with Gmail accounts. It was included in the floundering Google+, and has lived on by integrating with Gmail. It enables video calling for up to 10 people, phone dialing, and text messaging. One needs a Gmail account in order to start a Hangouts session, but can invite non-Gmail users by sending invite links through email.
Google Meet is the paid enterprise version of Hangouts, and has different pricing tiers based on the size of your organization. It is part of G Suite, which is a bundle of business apps beyond just video conferencing. Users can host up to 100 or 250 meeting participants depending on their tier. You can record meetings with Meet and save them in the cloud, which is not possible in Hangouts. Both Meet and Hangouts support screen sharing when on a desktop web browser. They’re both available on mobile devices through apps.
Google Duo is a free person-to-person video chat service meant to compete with Apple’s Facetime. However it has grown to support up to 12 users per chat. Users call other people through phone numbers or email. The Pocket-Lint article surmises that Google Hangouts will be discontinued either this year or next, and consumers will be left with either Meet or Duo.
How To Use Google Meet In Your Business
It’s apparent Google intends for Meet to compete with Zoom. Starting at $6.00 per month, you can subscribe to G Suite and use Meet along with all the other included apps. Zoom’s paid plans start at $15 per month, but you can host more participants.
You can read my previous post about Zoom for ways to make money with video conferencing. These are 1-on-1 consulting, selling tickets to events, hosting video meetings with paying website subscribers, and running webinars for subscribers and for marketing purposes.
Currently, Zoom has more features than Meet, notably the ability to host webinars. There is the current and frequently updated WordPress plugin to integrate Zoom with your website, which is great for taking ownership of your conference content. I haven’t found an equivalent plugin for Meet, and all the corresponding plugins for Hangouts haven’t been updated for several years.
This doesn’t mean Meet won’t have these uses in the future. Last year, Google released an official site kit plugin for WordPress, which means it takes WordPress-based businesses seriously. Keeping WordPress plugins up to date is a crucial security concern, so it appears Meet should be used only in Google’s environment, for now. Google Meet is actually free for consumers until September 2020, likely to assist businesses during the COVID 19 pandemic, but possibly to also grow its installed user base.
For the time being, Google Meet is best used as a meeting app for businesses with several employees. Its feature set doesn’t benefit solo entrepreneurs or freelancers wanting to use their websites to power online business. Google Duo is preferable for communicating with clients that you can invoice for services rendered.
Zoom Video Conferencing is one of the rare success stories during the COVID 19 pandemic, when other businesses are hobbled and must rely on digital communication. This article goes over basic functions of the service, how it became so successful, how to use it safely, and ways your business can make money with it.
How To Use Zoom
This video by the YouTube channel “Every Bit Helps” is a great beginners’ lesson in using the service. Most users have some idea how it works, but there are important features one may have missed.
Why Zoom Is So Popular
This article by Drift explains that Zoom already had a solid business foundation before becoming the de facto video conferencing app during the pandemic (The 3 secrets behind Zoom’s triple-digit growth). The three factors are, a customer-first culture driving a positive user experience; making a product that can sell through word of mouth; and advertising the brand in areas with the most impact.
Customer experience is a lynchpin in business success, and Zoom continuously tracks data and collects reviews from users. This led to its adoption of the “freemium” business model. You can use Zoom for free, but for only 40 minutes at a time. If you want to hold longer meetings, you need to upgrade to one of its premium pricing tiers, based on the size of your business. Zoom’s developers strive to make the free version reliable and easy to use.
In the early days of Zoom’s business, they focused their advertising and brand awareness in the San Francisco Bay area. They ran billboards along Silicon Valley’s Route 101, and ran banner ads at Golden State Warrior games. Being a tech company, they wanted their fellow software developers to be early adopters, who could most effectively attest to the product’s quality.
But is Zoom high quality? We’ve all seen the backlash against it as Zoom meetings have been intruded upon, and the app’s security questioned. Facebook’s Messenger Rooms make a point of preventing this in its press releases.
Fortunately, Zoom can be made secure with some basic precautions. The Verge lays out a plan, and notes that Zoom themselves are modifying the app to make security easier (again with user feedback!) The first factor in Zoom meeting security is creating meeting passwords, and sharing them only with the people you invite. The Verge article lays out the steps:
From the main Zoom page, click on “My Account” in the upper-right corner, and then click “Schedule a meeting”
If you wish, you can enter a meeting topic and description. Put in the date, time, and duration of your meeting. (If you’re on the free plan, you’ve got 40 minutes.)
Look for “Meeting ID,” and select “Generate Automatically.” This will generate a unique ID for that meeting rather than use your usual meeting ID.
Make sure “Require a password” is checked. Zoom will generate a random password, but you can also create your own.
Below that, make sure “Enable waiting room” is checked (and it’s a good idea not to check “Enable join before host” since that would let participants wander into the meeting before you do).
Click on “Save”
You’ll be brought to the meetings page where you will see all of the options for that meeting. Halfway down, you can click “Copy the invitation” to put all of the info into your buffer so you can send it to your participants. When you’re ready, click on the blue “Start this Meeting” button.
If you’re using the Zoom app:
Click on “Schedule”
You will be offered essentially the same selections as in the web app. If you want to make sure the waiting room is enabled, click on “Advanced Options” at the bottom of the page.
Click on the blue “Schedule” button
You’ll be offered the chance to put the meeting into your calendar. After that, you’ll be brought back to the main window. The scheduled meeting will be on the right; if you want, you can click on the three dots to the right of your name to make changes or copy the invitation into buffer to send to your participants.
Another helpful feature is the Zoom’s virtual waiting room. You can require guests to wait to enter the meeting while you verify they were actually invited. Also, if you know that all the invited meeting participants have joined, you can “lock down” and prevent anyone else from joining.
How To Make Money With Zoom
How can you use Zoom in your business, besides running team meetings? How can a solopreneur use it to make money? Here are some ideas that combine Zoom with other tech solutions. Most of these methods can be used by hosting meetings on your business website. There is a WordPress plugin that lets you embed Zoom meetings on your web pages (Zoom WordPress plugin: https://wordpress.org/plugins/video-conferencing-with-zoom-api/)
Coaching/Consulting: An obvious use for video conferencing in business is holding coaching appointments with clients. You can send your client a link to the Zoom meeting, have your session, then invoice them later.
Sell tickets: You can host live video events on your website, and sell tickets to it with a WordPress plugin or Eventbrite. The Events Calendar WordPress plugin has a paid extension that enables you to sell online tickets, and announce them on your site’s calendar. This is useful for entertainment or fitness classes.
Paid membership: You can install a membership plugin on your WordPress site, such as MemberPress or Paid Memberships Pro, and host Zoom meetings among your site’s paid subscribers. This is useful if you run a blog with free content, and want to offer premium perks. Membership plugins work by blocking off certain pages to everyone except subscribers, and hosting your exclusive content on those pages. You can record your Zoom meetings, and keep them in an archive behind your paywall.
Webinars: Video conferencing apps like Zoom are ideal for webinars, which can be either paid ticket events, or a marketing tool. It’s common to host a free webinar in exchange for someone’s email address, then use email marketing to promote other products or services.