The business of selling black soap online is really just any other business in that you need to raise funds in order to get started and to keep things going. This is especially true if you are making your own soap and not selling someone else’s product. Thankfully for you, raising is not so difficult these days, what with the proliferation of crowdsourcing website.
What is crowdsourcing and how does it work? Crowdsourcing is basically collecting small amounts of money from different people to raise a target amount. There are many crowdsourcing websites out there, however, for your own business, make sure that you only deal with those that cater to business startups.
Definitely, the top website for business crowdsourcing is IndieGogo, although there are many others like Rockethub, Peerbackers, Kickstarter. The good thing about crowdsourcing websites is that you do not need to pay anyone back. The money is not treated as a loan. It is more like a donation where people give you money out of the goodness of their heart, however, this has not stopped entrepreneurs from offering incentives for contributing money to their business.
We saw a Kickstarter page for a bar where the owner offered free drinks to anyone who donated. You could do the same and offer a free basket of soap to anyone who makes a contribution.
In order to raise a substantial amount of money for your business, you need to be clear about the kind of business that you are trying to build. More important, you need to have a Unique Selling Proposition for your business. What would set you apart from the thousands of other people who are selling black soap? Above, tell your story and let people in on the backstory on your business. In other words, tell them why you are doing it.
The crowds that frequent crowdsourcing websites often have an emotional response to pages. If it talks to them, they will donate.
Another option to raise money for your business is peer-to-peer lending. P2P lending is basically asking for a loan from another person with a promise to pay the money back plus interest. The most notable P2P lending websites to date are SoMoLend and Endurance Lending Network. The people who lend you money are individual investors who are looking to make a profit from the interest rate. If you plan on raising money this way, make sure that you have a sound business plan for making your business work.
You could also get your money from equity investors on websites like Growth Venture Community, MicroVentures, Angel List, and Circle Up. These websites are basically crowdfunding websites for accredited investors who invest money in lower amounts of $1,000 to $5,000 per investor.
As you can see, there are many sources of funding for your black soap business. Now the only thing you need to do is polish your presentation to convince people that you are a legitimate business and that you have what it takes to become profitable.