One of the most important problems for entrepreneurs at all levels is collecting money and selling stocks.
It is also one of the most daunting, time-consuming and wasteful roles they face. Fortunately, with the passing of the Employment Act and the development of funding websites, as long as prospective buyers are led to the Securities and Exchange Commission-registered financing site where their shares are being sold, entrepreneurs can now use the internet to broadcast their offers.
In the current climate, this is especially important. Here are 10 reasons why entrepreneurs should boost online capital:
- Meetings face-to – face are not needed.
The “death by 1000 coffees” process of hopping from meeting to meeting with potentially qualified buyers who can listen to your pitch and determine if they want to buy your stock is the conventional mechanism for raising money. This archaic mechanism has ground to a halt with the latest COVID-19 pandemic, leaving many entrepreneurs emphasising what to do next.
- Set up painlessly
You should be able to get live on an online fundraiser website within a couple of weeks if you are a real running company and have your financials and documents reasonably structured. We had a business go live with us at Netcapital just six days after the first phone call.
- Make it simpler to get a “YES” decision for investors.
It is impossible to distinguish $25,000 or $100,000 from purchasing shares in a start-up venture. Prior to signing a check in the six figures, even the richest ought to have a talk with their significant other. The small investment sizes are far more achievable via online platforms. Closing for $5,000 is potentially much better for investors than closing for $50,000. Especially in times like these, where wallets are tightening, it is particularly important to make it easy for investors to say “YES.”
- Investing in the enterprise digitise and simplify.
Speaking of making it easy for investors to say “YES”-online portals spare investors the usual hassle of getting 10 pages of deal papers to print, sign, scan and return and then go to their bank account to wire funds to a designated account and routing number. They simply press one major investment button on a portal, attach their bank account, and buy.
- Empower people who care most about you and your industry to take part.
On an online platform, you can collect money through the new JOBS Act and encourage any investor to join in your bid. You are not limited to the richest and most well-connected anymore, but you can now go to those who are most enthusiastic about your business. Five years from now, you don’t want to have to justify to your uncle at Thanksgiving dinner why he never had the opportunity to invest in your rocketship business, so give him the chance now!
- Create brand loyalty.
Your clients are one of the most influential people who would continue to participate in your company if you give them the chance. There is no better option than enabling certain clients to own equity to develop brand loyalty and create brand ambassadors. It would be more beneficial to customers who are economically incentivized for your accomplishment than you can imagine.
- Get your team engaged in a vital part of your market.
Too much, conventional fundraising depends on only one person’s contributions. Founders / CEOs bear the burden of raising capital alone in a manner that restricts the success of fundraising to the network of only that person. Your whole team will help raise money by online channels. Have your CTO report to her on LinkedIn that the business is collecting funds. Ask the person in your operations to tell all of her Facebook friends they have the potential to invest. In a time where we are both apart, let the team feel more together.
- Integrate the raising of capital into your tasks.
For the CEO, conventional fundraising is a major time investment that requires a great deal of time away from more vital areas of the organisation. Either you get a huge check written and it was a decent use of your time to fly out to Sand Hill Road, or you didn’t get the money and you didn’t earn anything for your efforts. The efforts, money and resources expended on the road fundraiser is subjective. Utilizing an online network helps you to incorporate your fundraising with other primary programmes. Active ad campaign running? Conduct any commercials leading customers to your investment offering. Sending out your base weekly emails? Notify them of the investing potential. Make a new app? Guide consumers to the prospect of investment as they try it out.
- Release stress contract.
It makes the debates more lively when you put the terms up front and give investors just one decision to make (yes or no). You constantly avoid answering the same 20 questions and the answers to the obvious questions can be found on your offering page by any interested investor. The simplicity of decision-making when leaving out redundant talks makes it easy for an investor to say “YES” and makes your life easy as an entrepreneur.
- Take power of your fate.
Do not rest on your hands and wait until this worldwide pandemic has ended. Take measures that encourage you to do exactly that to build value-online fundraising platforms. It also encourages you to set the criteria that you feel are fair, and tells the world that there is a need to invest in your business.
Now is the time to explore, if you have ever felt that an online forum could be an productive way of fundraising for your company. All is left working from home, investors are disappointed by the public markets’ uncertainty and all is glued to the internet waiting for something interesting to entertain their minds. Publish an offering page and excite the world by contacting your network and telling them to read your storey for 10 minutes and give you some suggestions.
To enter the digital era, it’s time for capital raising. To make it possible, COVID-19 might only be the trigger.
Article Credits –
#OnlineCapitalRaising #SellingStock #Entrepreneurs #COVID-19 #WFH