Unless you’ve been living under a rock for the past decade, you must have come across at least one article preaching the gospel of starting an online business. Now, unless you were born into 3rd generation family wealth, chances are, you must have bought into that particular gospel. The reason for this is simple.
Online businesses or startups have evolved from being mere hobbies to becoming one of the surest paths to financial independence. And so armed with your billion-dollar idea(s), you set out to create the next big online business. But like many others before you, you hit one small snag. One which has plagued business enterprises for as long as we can remember. The problem of funding.
As you must have guessed, lack of funding for online businesses or startups is perhaps more detrimental than outright failure in the business itself. This is because while entrepreneurs may learn from their mistakes and bounce back, those who lack funds never get the chance even to start. And so, they’re deprived of the extra income and business experience, and the world, of the next big thing since Facebook.
So, we come to the big question, how do you raise funds for your online business or startup?
Fundraising 101
While the traditional methods of raising funds for your business are still valid, there are more creative ways to do so for your business. Below are some of the more creative options for you out there.
1. Crowdfunding
You’ve probably heard a lot about crowdfunding and are probably wondering why it’s on the list. But the truth is, there are few things as creative as financing your business with the help of total strangers who want nothing but your success. Crowdfunding, as the name implies, is the practice of sourcing for funds from “crowds.” Rather than seeking out a single investor, funds are pooled from different businesses and individuals on platforms created for that purpose.
How do you get started? Get on one of such platforms like Kickstarter and pitch your business idea. The more impressive your pitch, the more likely you are to gain support. One of the advantages of crowdfunding is that you retain 100% ownership of the business most of the time, unlike some other options.
2. Venture Capitalists (VCs)
Apart from crowdfunding platforms, venture capitalists are another way to raise funds for your cash strapped business. This is a funding option that sees investors invest in upcoming enterprises that have a high potential for growth and monetary returns. Because of this, this may not be the best option if your business isn’t profit-oriented. Also, your pitch must even be more impressive than would be the case in crowdfunding. Your growth projections and accounts must completely be in order. Now, if you don’t have a good grasp of accounting principles, you can use accounting software to solve all your accounting-related problems.
You must note that unlike crowdfunding, venture capitalists always look for equity shares in the businesses they invest in. And in addition to this, they are also vested in having a say in decision making.
One significant advantage of fundraising through VCs is that you can raise more substantial capital than you would in crowdfunding. That being said, a great alternative to venture capitalists are angel investors.
3. Vendor financing
For those new to the online business world, you probably may not have heard of vendor financing. And that’s simply sad because it is one of the most creative ways to raise funds. It is a goldmine for those who wish to deal with tangible products but lack the capital for inventory.
How does it work? When you need products but lack the funds to purchase them, you can convince manufacturers and distributors to defer your payment till you sell your goods. So instead of the usual 30-day period, you get an extension that can last for months. This naturally would depend on your creditworthiness and, of course, extra fees.
We advise you to explore this option only when you’re sure of the demand for your product and the direction of your product offering. To do this, you would need a product roadmap template to help you forecast your product’s development over time and align it with the expectations of stakeholders. This way, you don’t run into debt trying to cover expenses when you’re yet to make a profit.
4. Purchase order financing
This is another creative means of raising funds for those who deal with physical products. It is used by businesses that lack the cash flow to purchase inventory to meet customer demands. Here, a financing institution pays your suppliers for the products which you sell to your customers. To take advantage of this method, you need to sell finished goods to business-to-business or business-to-government customers with at least 15% profit margins.
Like vendor financing, your creditworthiness goes a long way in your ability to utilize this option. It also helps if both your customers and consumers are well established and trustworthy as well.
One of the many advantages of purchase order financing is that it creates opportunity for revenue growth without the problem of taking on debt or selling equity shares of your business.
5. Microloans
This is a fundraising option usually reserved for non-profit businesses. Here, finance institutions grant loans to startups that do not qualify for bank loans. The loans can be up to $35,000. Examples of where you can get funds via microloans are Patriot Express Loans, groups like Kiva, and the Small Business Administration, which has its upper limit at $50,000.
In conclusion
Funding an online business or startup is by no means easy. In fact, it’s probably the only barrier between you and the financial independence you’ve longed dreamed of. As you can see, however, it doesn’t have to be the herculean task it was ten years ago for the first set of brave entrepreneurs. By using one or more of the methods discussed above, you’re likely to solve most of your fundraising problems. And the best part? You can still combine these creative modern methods with older traditional means like personal savings and donations from family/friends.
As a guide to pricing comps, I normally charge full design rate. The reason being, is a comp takes as long as the final art in most cases. The idea, creative direction and set up is all in place even when designing a comp. As for spec work, that is always free. I do not recommend ever doing spec work unless you feel that you stand a chance to get the job. Chances are that the prospective client will take your idea and take it someplace else for cheaper. About 98% of the time, I do not touch spec work. If I feel lucky or I know I could get the job, I will do a job on spec. As for an hourly rate to charge, that will all depend on your skill level. I bill between $60 and $100 an hour for design or comp work. My suggestion is to never go below $50 an hour; you have to run a business and anything less will not pay the rent. For some ways to protect your work, you will need a contract, and possibly a copyright ownership agreement.
The form you are getting your freelancer to sign is really more for an employee of your firm or more of a permanent freelancer that you hire on full-time to part-time basis. My suggestion is to use a “work-for-hire” agreement. This form will protect you from all sorts of stuff and will act as a confidential agreement. If this person does not want to sign this form, I would advise to use caution when using them.
As for the rate of $125 per hour sounds fine. By looking at a currency converter, your $125 an hour rate is about equal to $77 per hour here in the USA. However, I would suggest calling up a few local design firms and do a little price checking. Also, depending on the Australian economy, will depend on how much you can charge. You might even consider having 2 rates, one at your regular rate and the other a little lower for lesser budget clients or bad economy issues. I have my rates between $60 and $100 US dollars per hour which would equal to about $97 to $162 AUD.
CreativePublic has partnered with Fix The Photo to offer our members discounted photo editing tools and restoration services. Here are a few options below to review:
You are automatically protected by US copyright laws. You own your artwork and as long as you have not transferred the rights to the designs to the client, you still own them. The only thing you can really do to protect yourself is to place the copyright symbol on each logo and state that these logos are property of your company and may not be reproduced without your permission. If they take your design without paying, then hire an attorney an go after them. One other thing to consider is not doing this type of “spec work”. You are opening yourself up for someone to take advantage of your hard work and not pay you for your ideas. Many clients try to get ideas from designers and go other places to get the work done cheaper. Your portfolio should be enough to let the client know you can do the job. However, I understand that there are times that you need to do this to land a big deal, just be careful.
Getting Clients in Tough Times: Interview with Jason Vaughn, owner of CreativePublc.com
by Sessions.edu
Getting and growing clients can be difficult for designers at the best of times. But in today’s volatile economy, it’s feast or famine. One minute you’ve got swarms of clients, and they’re getting under your feet. Next, you’re running around town trying to find just one of ’em.
Sessions.edu Faculty member Jason Vaughn (developer of the Graphic Design Business course) founded CreativePublic.com in 2001 to give designers tools for the freelance environment. We asked Jason for his tips for client acquisition and the design business in general.
In today’s world, websites form an important part of most businesses. UI/UX design web content has emerged as necessities rather than luxuries for firms. Trained professionals are hired to take care of this aspect that makes the websites more engaging and attractive for users. UI/UX design webpages are very important to boost sales and garner profit.
Here are a few tips by which you can enhance the quality of
your web page.
Focus on the content on your website
As is the popular saying, Content is King. Users will not be impressed with fancy designs if the content in your website is substandard. Most UI/UX design tips include suggestions for improvement of the content. It should add to the UI/UX design web page and complement it. The site will be flawless only if it has great content in it.
Write the text in an engaging manner
Tips for UX design not only focus on the content but also on the way it is presented on your webpage. For the users to understand and connect with whatever it is that you have on your page, they need to be extremely well presented. Check the font size and spacing for UI/UX design inspiration. Make sure that the entire content is properly visible and looks attractive
Use contrasting colors and designs for more effective presentation
The choice of color and patterns are extremely important according to most UI/UX design agencies. Anyone with a UI/UX design course will be aware of the importance of contrasting colors on a public web page. This makes the content more attractive and pleasing to the eyes.
Use pictures and other pictorial representation smartly
According to most UX design tips, users connect more with
web pages that have a higher number of pictures. The inherent characteristics
of human beings are to understand graphs and pictorial representation of data
better than other forms. Thus, include pictures in your website wherever they
are relevant. It should not be abrupt and complement the topic. This way you
will be able to attract higher traffic to your website with ease
Make sure of the quality of the images that you use
One of the Fundamental UI design tips is to always use high
definition images. If not only makes your website look good but also makes sure
that people operating various browsers connect equally well with the content on
your web page. Using standard definition can often result in poor image quality
in some devices and browsers.
Employ an interactive design
Most UI/UX design agencies employ an interacting button system so that the people feel like they are clicking one on screen. Even though the purpose is served if you use just flat buttons, the webpage becomes less engaging and users lose interest pretty fast. An interactive user interface makes sure that all your visitors are converted into leads.
Use touch gestures to make your website more interactive
To make your web page more interactive and user-friendly,
you can use touch gestures in them. Add these gestures to visual
representations of data and graphical icons and you will achieve a higher level
of aesthetics on your website. Apart from making your page look attractive,
they will also act as a major fascination for visitors.
Boost your sales with a trained developing agency
Using these tips, you can easily improve the build quality of your UI/UX design webpage and attract more viewers. Get in touch with us to get the best web solutions and make sure that your website is unique and out of the box.
Conclusion
All the potential customers will perceive your website as the very first impression. Quality websites are a must for maintaining a robust online presence. Follow these UI/UX design web tips for attaining the best quality of your website pages. Get in touch with us today for availing finest services from our design experts who will create the best websites.
Author Bio:
Manan Ghadawala is a regular contributor to Writerzone.net and the founder of 21Twelve Interactive which is one of the best mobile app development company in India and the USA. He is an idealistic leader with a lively management style and thrives raising the company’s growth with his talents. He is an astounding business professional with astonishing knowledge and applies artful tactics to reach those imaginary skies for his clients. His company is also recognized by the Top Mobile App Development Companies.
It’s sad to say, but we have all had asshole clients and they never seem to go away. This is a great article with charts explaining the asshole client. Enjoy!
