In today’s world, we all know someone starting up a business or has one vital thing that has shaken the world, like the pandemic. We all want new ways to support our locals.
The problem most businesses face is called cash flow. You see, cash flow is like air to your lungs, it keeps you breathing, and you can’t stay without it for long. The problem with most start-ups or small business owners is that they cannot get loans or affordable loans because the tax rates are too high. Banks establish rates according to the business risk.
Since you are new and don’t have a record, the risk is high; therefore, the tax rate is high.
Now, the question is… how can you get money and support for free?
Traditional ways to get money:
- Getting a loan is not an option. It is very expensive. Banks usually won’t take up the risk of your new business.
- You probably used your savings when you were starting out. This is one of the primary ways of funding.
- You got a loan from friends or family. People who want to help you probably lend you some money, but this can’t go on forever. You need other ways.
- Getting a fundraiser? People want to give away money to feel better but usually do it for causes they believe in and support.
- Credit cards are as expensive as bank loans, or they could be more expensive.
Do you know the red ocean, blue ocean analogy?
Let me explain to you what this is.
Now a red ocean is a place where there is a lot of competition, it was a pretty good idea and worked for someone, so now everyone is doing it. A red ocean is a place or marketplace where prices are very competitive, and everyone is doing the same thing. Like pasta restaurants or blogging, they were successful initially or just for a few. But the large majority is not succeeding in them because the market is too competitive.
Blue Ocean strategy is a brand new ocean of opportunities. A market with no competition and a void or gap in the market that no one is fulfilling. This could be the remake of an existing idea or a very disruptive innovation. Netflix, for example, saw a current void that blockbuster was leaving on the market and decided to go all in.
Creative ways to get money:
We must think of creative ways to get money and funding for our business. We must think of the blue ocean of loans and cash.
1.- How can you ask for money before producing/ delivering the goods? If you cannot get a loan, how about an upfront payment? How about asking for money first and doing the product second?
2.- Creating passive income: What if you could start a blog, social media account, or something that could give you passive income to fund your project? You need 0 to start, which can turn your business into a success!
Spread the word
One of the best ways to support a small business is by helping them spread the word. By sharing, commenting, and endorsing them on your social accounts, you can send them traffic, give them validation and let your friends know that it is a trustworthy business. Imagine if you could do this with 100 friends, who each have at least 200 friends. That’s the power of communities.
People buy what others buy, right? Have you ever thought about why you choose to teach in a restaurant? You see the number of reviews, comments, and tables they have. You don’t want to risk yourself getting sick. We all go to places others like and trust. That’s the power of validation.
Now, if you could get 10 testimonials from your friends and share them on your social media, you would validate your idea and let the world know that everyone likes what you do.
There are many ways to support a local business. The goal is to get creative and not fall in common. The hardest part in any business is to get the ball rolling, and that stage usually lasts 2 years. If you can keep going no matter what and get the help you need, you will succeed. Remember that anything is monetizable. You just need to learn how to put it into words and find market validation.