Many people dream of starting up their own business and escaping the rat race. However especially in this era of uncertainty, many are stepping away from taking risks as they are wary of losing a large amount of capital. The digital economy offers a variety of ways to fund and grow your business, through better loans to contra dealing opportunities.
Increased crowdfunding is helping companies raise funds whilst contra dealing is at the forefront of assisting companies to share their trades and skills. Here are 3 of the trends that are helping small businesses to increase their profits.
Peer to Peer Lending
Peer to peer lending is an industry under increased financial scrutiny in recent years however it is still a good way for small businesses to fund their business without going to a high street bank.
The idea is to essentially allow individual investors to lend their money to small businesses through a third party, and the investors enjoy higher returns than they would see in a regular retail bank. The third party charges a servicing fee while you are free to enjoy the interest earnt on the loans.
As with peer to peer lending contra dealing has seen a surge in popularity recently as barriers to trade have been reduced on the internet. If you are offering a service that is marketable and in demand, there is nothing stopping you from offering that service in exchange for something your business urgently needs. Adopting a bartering mindset is a fantastic way to grow your business organically without investing huge sums of money.
Crowdfunding is similar to p2p lending except for this form of raising funds can involve the use of rewards and products in exchange for an investment in the business.
Kickstarter is the most famous of the crowdsourcing platforms and is a great way to offer customers exclusive access to goods and services in exchange for upfront investments in your business.
Think differently to get the most out of your business
The modern digital economy offers a huge amount of opportunities for small businesses that are willing to take risks on new technologies and platforms. Experimenting with contra dealing and other forms of fundraising will help to keep your business competitive. If you have any contra dealing related questions feel free to contact us with your queries.