This is a guest post by Matt. You can read the guidelines for guest posting at our write for us page.
If you are looking at launching an online business, whether this is a full blown e-commerce site or simply a blog in order to make affiliate sales, there is a high probability that you will require some initial finance for things like hosting, outsourcing and digital products.
In this article we look at why you should consider borrowing a small loan over a short period of time as opposed to getting a business loan from your bank.
The bank is there to help though, right?
This is true – your bank will be more than willing to assist you in your new venture. However, to essentially obtain a business loan you need to have produced a full business plan complete with financial broadcasts and profit/loss estimations.
For the very small business owner, this information is not always easy to put together and some would argue that for a small online business it is not particularly relevant. That being said, the banks will still want to see it before they consider processing your loan application.
Looking elsewhere
Looking outside of the obvious there are many small loan providers which can offer finance very quickly and do not ask questions. Typically these carry a higher rate of interest but if you want to kickstart your online business quickly there is no better way than obtaining a short term loan. This will give you the capital you need to get going.
Calculating how much to spend
If you are new to internet marketing you should consider employing the assistance of a professional. Factor their time into your costs along with your immediate expenses to figure out how much you need to borrow.
At this stage it is important to develop a strategy by which you intend to earn money from your online business. If you are straight up selling products, this need not come under too much scrutiny but if you want to monetize in other ways you may need to explore what possibilities are out there.
Paying back
If you have planned effectively and offer a good service or product, you should be able to start generating revenue from your site within a month. This is even true without paid advertising. If dealt with smartly, an online business model is a very viable way of making money in a reasonably short space of time.