Browse Tag

business funding

4 mins read

5 Ways to Get Funding for your Web3 Startup

Raising funds to get your Web3 startup off the ground can be challenging and overwhelming. However, there are a few tried-and-tested methods that you can try to attract capital for your Web3 venture. This article will explain some of these methods to you.

1. Self Investing & Asking Peers

Some founders of startups choose to invest their own money into the startup. Investing in your own idea is a sign of trust and confidence that could appeal to potential external investors. It shows them that you have faith in your project and are willing to take financial risks for it.

Also, if you’re a founder of a Web3 startup, don’t overlook your personal network as potential investors. If you know friends, family, neighbors, or colleagues looking for new investment opportunities, pitch your idea to them.

However, you and your peers alone cannot fund the entire startup. Once you’ve garnered as many funds as possible from your peers and contacts, you need to look to other external sources to get your startup on its feet.

2. Grants from Traditional Entities

Grants are pretty popular among the Web3 community as they are an important source of non-repayable funds. You also don’t have to give up any equity in your company when you accept a grant.

You can take advantage of this by applying for grants offered by traditional organizations that are part of the public and the private sector. Some of these organizations are looking to grant funding to promising startups aiming for innovation in the Web3 space.

When applying for grants from traditional organizations, however, remember that they come with specific stipulations, so read the fine print.

3. Grants from within the Web3 Industry

Many renowned organizations within the Web3 industries are looking to offer grants to startups that use their particular technology. For example, big names like Ethereum, Solana, or Cardano can offer you substantial funding, but the competition can be too fierce.

You could also consider grants offered by newer blockchain players in the market. Establishing your startup on one blockchain network can help you raise funds to expand your idea to others.

4. Web3 Accelerators & Incubators

Startup accelerators and incubators are typically designed to help fresh entrepreneurs grow by providing training, education, and a sufficient workspace. While they may not always be direct sources of funding, they do prepare you for the next steps in fundraising.

If you’re still developing the skills or confidence to build your startup and pitch to potential investors, accelerators and incubators could be of great help to you. However, ensure that when choosing an accelerator or an incubator, you pick one that caters specifically to Web3 startups.

5.   Web3 Crowdfunding

While crowdfunding isn’t a new concept, it works slightly differently for a Web3 startup. Mostly because crowdfunding for new Web3 projects happens on blockchain networks. You can find various decentralized crowdfunding platforms that aim to raise funds from the wider Web3 community to help DAO projects. You can browse through your options and create a crowdfunding campaign for your startup!

Do extensive research on how each of these funding sources could benefit the startup idea you have in mind. Before approaching potential investors for funding, think of optimal ways to create and market your brand and get comfortable with pitching to investors.

Tony O. Lawson

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5 mins read

Buying a Business VS Starting a Business: Which is Right for You?

Buying an existing business might be a good fit for you if you are concerned about starting your own business from scratch and the costs associated with a new business. When you buy an existing business, it involves taking over an operation that is already profitable and generating cash flow.

These businesses typically have a strong customer base and reputation, as well as employees who are familiar with all aspects of the business. Moreover, there is no need to set up new procedures, systems, and policies, since a proven formula for running the business already exists.

Though it can be more expensive to purchase an existing business than to start from scratch, it’s actually easier to procure financing for an existing business than for a new one. It is generally easier for banks and investors to deal with a business that has already proven its track record. You can also obtain valuable legal rights such as patents or copyrights if you purchase a business.

Buying a Franchise

Many feel that buying a business is less risky than starting your own, especially if you can find a well-managed, profitable one—and negotiate a good price. An existing business provides immediate cash flow, and the difficult start-up work has already been done.

You’ll have a customer base and suppliers. The business’s financial history shows what to expect—and often makes it easier to get loans or attract investors.

However, you will need to invest a large amount upfront, especially if the business hasn’t been profitable lately.

Franchising allows a business owner to open their own branch or branches of an existing brand. A franchise license entitles the holder to market particular products or services under a brand or trademark according to prearranged terms or conditions. In exchange for fees and royalties paid to the parent company, the franchisee can use the business format and systems of the franchisor.

The main advantages are a proven market for the product or service, and tested and specific operations management policies. The main disadvantages stem from the power that the franchisor has over the franchisees.

Purchasing an existing business makes it much easier to plan and raise capital, because of the historical records.

Franchising is becoming an increasingly popular method of establishing and operating a small business. Many entrepreneurs find the opportunity to operate their own business with slightly less risk an attractive option, but operating a franchise is more restrictive than the other two forms of ownership.

Starting Your Own Business

There are plenty of advantages to starting your own business. You are the boss! You can set your own schedule, conduct your business your own way, and do things in your own time. If you buy a franchise, you still have a “parent company” overlooking you and your business. Starting your own business means it’s all about you!

This also means you can bring something new and unique to the market. You don’t have to sell what others want you to sell, it’s all up to you! Plus, depending on your business, you will be paying much less than buying a franchise.

However, when starting a new business, it may take a while for you to become profitable. This may take months or even years before you start seeing a positive change in numbers. You’ll have to keep your head on straight if you start your own business.

Lendistry is a Black owned fintech firm that provides economic opportunities and progressive growth for small business owners and their underserved communities as a source of financing and financial education. Contact them today if you would like to learn more!

4 mins read

How I Raised $1 Million in Business Funding

Roughly 45% of businesses don’t make it past the five-year mark. One of the most common reasons for this failure rate? A lack of business funding.

Now, this isn’t to say that money isn’t available—the chances are that if you’re got the fundamentals of your business laid out, the money is out there.

Ultimately, it comes down to how you manage to acquire it. And that’s exactly what this article is going to cover.

How I Raised $1.07 Million for My Trucking Business

2020 showcased a remarkable accomplishment for Pierre Laguerre, the founder of Fleeting, who became the first Black man to raise the maximum amount possible ($1,070,000) through crowdfunding opportunities in the span of 12 months.

Fleeting is a platform that connects companies with experienced and qualified CDL drivers. Since trucking is a critical part of the supply chain, which constitutes the backbone of the economy, many investors quickly took the chance to weigh in.

How to Raise Capital for Your Business

When it comes to the trucking industry, entrepreneurs might find that they need more than just dedication. Starting a trucking business is an excellent decision because the trucking industry isn’t going anywhere, but it often always requires high capital investment for startup and operations.

That said, there are still several ways you can finance your business:

1. Use Equipment Lenders

With a well-managed business plan and some existing capital, you stand a higher chance of getting financing from equipment lenders. Many lenders provide tailored solutions that you can use for your trucking business, which will eventually help you bring in more investors.

2. Crowdfunding

When compared to other methods of raising capital or financing a business, crowdfunding is definitely a newer option. Despite being new, however, it’s quickly risen in popularity as a way of funding, and we’re no exception to this.

Crowdfunding functions much like a loan, pre-order, or investment—just from several people instead of one person or entity. As an entrepreneur, it will be your responsibility to sell your business on the crowdfunding platform, including your goals, plans, amount of funding required, etc.

3. Enter a Franchise Agreement

Entering franchise agreements with interested parties can be extremely useful to grow your business quickly. This arrangement allows other owners to use your name for their business while paying you a franchise fee as well as a portion of their profits.

4. Look into Freight Bill Factoring Financing

A problem you’re likely to run into in the trucking industry is delayed revenue. In some industries, this may not be a problem, but a trucking business will rack up operational costs that need to be paid off.

If you’re just starting out and don’t have an immediate cash flow, freight bill factoring financing can help. Freight factoring companies essentially buy your invoices for immediate payment, and then wait to be paid by the clients.

Ultimately, there are several ways to grow your business, depending on your needs.

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5 mins read

5 Reasons Why the SHOPPE BLACK Global Business Directory & Agency are a Game Changer

Since 2015, we have profiled thousands of businesses and interviewed hundreds of entrepreneurs and professionals from New York to Nigeria, all in the name of celebrating Black Business excellence and encouraging our community to invest in itself and to SHOPPE BLACK.

Now, we’re officially launching a Kickstarter campaign to raise funds that will get several initiatives off the ground, including:

  • releasing our highly anticipated international business directory
  • expanding our content
  • launching a business agency

Additionally, we’ll be traveling to cities across the country and the Diaspora to connect with entrepreneurs and folks who are invested in creating holistic and prosperous communities.

black business directory
SHOPPE BLACK Co-founders – Tony and Shantrelle

Reason 1 – More than just a Business Directory

Attracting customers (online or offline) is one of the top challenges that business owners face.  What better place to showcase your business or service than through a website that Google has ranked at the top for searches relating to Black owned businesses?

We won’t just list your business on our directory and pray that potential customers find you, we’ll become actively involved as an extension of your marketing and promotions team.

This will allow you to leverage our expertise as a platform that attracts hundreds of thousands of visitors monthly, has amassed over 90k email subscribers, and has grown a highly engaged social media following of over 200K people that are passionate about supporting Black owned businesses.

Reason 2 – Access to Business Funding

Jerry Maguire Money GIF - Find & Share on GIPHY

It’s clear that one of the biggest challenges for Black owned businesses is access to the capital needed to start or grow.

In order to do our part to bridge the funding gap, we’ll be offering access to a variety of business loans and credit via a strategic partnership with a Black owned business funding company.

We’ll also offer access to credit repair services for those who need help qualifying for funding.

Reason 3 – Business Services

Our agency will provide business owners and professionals with several services including:

Customer experience training – We’ve all heard about how the customer service at Black owned businesses, well…sucks. However, let’s be clear, this is a generalization. I know from personal experience that many offer excellent service.

For those business owners who want and need to improve in this area, we’ll provide training on how to build an army of lifelong customers that will sing your praises. This training will allow your customers to have a more pleasant experience with your business and feel good about spending their hard-earned money with you.

Branding – When it comes to the look of a website or images on a business social media account, we’ve seen the good, the bad, and the “could use improvement”. ?

Many businesses are getting it right, but many need some guidance. We’ll be enlisting the services of a team of professionals that will assist in making businesses look like they mean business.

Reason 4 – Results and Receipts

We can talk all we want but at the end of the day, what you need is results, and that’s what we offer.  We have a track record of helping businesses boost their brand awareness and increase sales.

black business directory
Results! – Boon Boona Coffee

 

black business directory
More results! – Nick’s Jerk Seasoning

 

Reason 5 – Support for Black Business Supporters

For individuals who are having trouble finding a resource that offers an accurate and up to date listing of Black owned businesses on a global level, we offer an online community that includes thousands of Black owned businesses and professionals from around the world.

Unlike most other business directories, we offer you the opportunity discover, connect and gain insight into these businesses via features, interviews, product reviews and more.

Stay tuned. The best is yet to come. We’ve got much more in store.

 

Click HERE to support!

 

Peace,

Tony x Shantrelle