We heard from a lineup of award-winning CEOs, investors, advisors and successful entrepreneurs. Their speeches equipped us with the resources and tools to succeed as women in business.

In case you missed it, or you want a recap from any or all of the sessions, we have the recording available for you in full right here:

Cheryl Contee

Riding the Mechanical Bull: How You Can Achieve Startup Success

See recording 3:16 – 29:55

Let’s be real: achieving startup success is never easy — but it is especially hard when you are a woman, minority, or both. Cheryl Contee has done it though — and in her keynote speech, she shared with us many words of wisdom and inspiration. 

From understanding that plans don’t always go our way, to realizing that we have the power to create the change we want to see in the world, sit back and listen to Cheryl Contee’s amazing speech. 

Codie Sanchez

Making Money & Doing Deals the Contrarian Way

See Recording 29:56 – 1:12:14

‘I don’t think it matters if you’re a woman or not, you have a vagina or you don’t, for you getting after it for business.’ With Codie Sanchez, our second speaker for the day, things got even more real at Her Future!  

Throughout her career, Codie Sanchez has worked at the intersection of marketing and money, finding contrarian ways to invest. She’s always balanced her profession with non-profit service to empower women.

Codie took the stage with the aim at empowering us with the tools to become financially free as a dealmaker and business owner. Ready to take some notes?

Dr. Cheryl Robinson

Power of the Pivot

See recording 1:12:15 – 1:35:16

What does pivoting actually mean? This is the question Dr. Cheryl Robinson asked our audience. The answer is different for everyone: it could be a new job in a new company, it could  be transitioning to a higher position. It could be starting your very own company. 

In her speech, Dr. Robinson equipped us with the tools needed to pivot successfully in our professional journeys. Find the inspiration you need by listening to her speech.

Jennifer Pereira

Taking on Wall Street by Buying up Main Street 

See recording 1:35:17 – 2:04:50

What is the secret to becoming ultra wealthy? Jennifer Pereira’s speech was all about making buying and owning a business available, and setting yourself up for success.

In her session, Jennifer gave us access to wealth building strategies through business acquisitions. 

Kaitlyn Knopp

Conscious Compensation

See recording 2:04:51 – 2:38:30

Do you own a company with a team in place, or want to hire employees for your business? Then you want to listen to Kaitlyn Knopp’s amazing session. 

Kaitlyn has over a decade of experience in compensation as an analyst and leader of compensation teams in the tech industry with companies including Google, Cruise, and Instacart. In her speech, she taught us best practices for creating and maintaining an equitable compensation program. You may want to get pen and paper for this one… there’s plenty to learn! 

Carrie Kwan

Harmonizing: The Art of Balancing Motherhood and Entrepreneurship

See recording 2:38:31 – 3:08:51

How do you balance motherhood and entrepreneurship? Carrie Kwan seems to have found the perfect formula to do both. She’s a speaker, communicator and mentor, proud mum and business owner. 

If balancing everything seems impossible, get comfy and listen to the wise words of Carrie Kwan, because you can do it all, even when it seems impossible.

Lara Morgan

Maximizing Your Business Growth Strategy

See recording 3:08:52 – 3:40:39

The final session of Her Future was a hit, and starred the incredible Lara Morgan. 

Any business owner can tell you that scaling a business is not easy. And for Lara Morgan, setbacks are at the order of the day. 

In her session, Lara shared the formula to successfully growing a company. So if you are ready for success, you’ll love every minute of this final talk. 

Closing remarks

See recording 3:40:40 – 3:42:06

As a small business owner looking for opportunities in the online retail marketplace, Lazada represents a fantastic opportunity to leverage its established payment and logistics infrastructure for profit-seekers. But many sellers don’t know where to start with the online shopping platform.

We’ve put together this complete guide that explains the sign-up process for the online store and shares some tips for how to boost sales on Lazada. 

Key takeaways:

• Selling on Lazada is simple with the right advice.
• Know and understand your competition.
• Good quality product images are crucial.
• Impeccable customer service is essential.

How to become a seller on Lazada

There are three simple steps to start selling on Lazada.

Step 1: Create your Lazada account

Head to the Lazada seller center and create a seller account. There are three account options to choose from. 

• Option 1: Sign up as a Lazada Seller. This option is for local sellers only. It lets Singapore-based retailers sell products on Lazada with zero commission fees. This option is only applicable if you are a seller based in Singapore.

• Option 2: Sign up as a LazMall Seller. Owners of trademarks or authorized distributors may choose this option. LazMall sellers have special access to specific campaigns and extra seller resources. Commissions are only collected when an item sells.

• Option 3: Sign up as a LazGlobal seller. Becoming a LazGlobal Seller is the best option for you if you are based abroad, notably in Japan, South Korea, China, and other Asian countries. Registered firms who want to reach international customers should use this option. You transport goods through a Lazada global shipping facility and only pay seller fees when an item is sold. 

For this article, we’ll assume that you’ll be signing up as a Lazada seller. The platform will direct you to a sign-up page where you must provide basic information, such as full name, location, and email or phone number. 

Then, they’ll send an OTP to your registered phone number or email. Use this to authenticate your account with the rest of the required information. 

Step 2: List your items/products

After signing up for the account, you can start selling online, but you’ll need to update your shipping details and start product listing. 

The site will direct you to the Seller Center. Here, you can start completing a to-do list. Add in your address and shipping details before clicking ‘Upload SKU’. This button will take you to the product listing process. 

You’ll be glad to know the process is relatively simple yet can be time-consuming if you have many products to list. 

First, checking that your product is not on Lazada’s list of prohibited items is vital. Generally speaking, the lengthy listing process has benefits since it complies with Lazada’s strict requirements for independent businesses.

Identify each product name/product title and product category. The product category could be “electronic devices,” “Personal Care,” or “Home Products.” Then, write a comprehensive product description sharing the necessary product information. 

We recommended using bullet points for product descriptions to enhance readability for the consumer. You’ll then need to fill out other fields, such as weight, dimensions, returns policy, and warranty details. Filling out as much of this information as possible will improve the shopping experience for consumers who like to see lots of information about a product. 

Batch uploading is available if you want to upload multiple products that fit a similar template. This batch uploading automates a part of the process to reduce manual effort. It’s worth noting that Lazada provides a training session for Lazada sellers that goes through numerous aspects of the eCommerce store. 

As well as teaching you how to navigate the eCommerce platform and handle inventory management, they offer weekly tips on product promotion and advice on how to increase sales. In addition, they offer fantastic tips on how to become a successful seller.

Step 3: Link bank account

The last step is connecting your Lazada account to your bank account or other payment options so that you can receive payment for any sales on Lazada.

You must activate your Seller Wallet by providing further required documents.

There are different requirements for corporate sellers and individual sellers.

Corporate sellers must provide:

• Legal company/business name.
• Business license/registration number and address.
• information from the seller’s ACRA business profile.

Individual sellers must provide:

• Full legal name.
• ID type.
• NRIC number.
• Residential address.
• Mobile phone number.
• Date of birth.
• Nationality.
• Coloured scan of NRIC (front and back).
• Bank statement.

Once they verify all the legal documentation, you are ready to start selling on Lazada.

How to become a top seller on Lazada?

To be a successful online seller in the Lazada marketplace, you must take numerous steps to obtain a competitive advantage. Let’s examine a few techniques to give you the best chance of increasing sales.

1. Know your competition

All business owners should know that success often comes from knowing your competition. As such, you need to keep track of what others are doing to understand how to optimize your efforts. 

One aspect of this is to keep track of keyword use. First, analyze the keywords used for those titles at the top of the product rankings. Then, check those high-performing product descriptions and product names and try to emulate them as best as possible while attempting to differentiate your products. 

This keyword research should be part of an overarching strategy to try and enhance your searchability so that users find your products — a fundamental principle of online selling.

As with any business, you must also compare your pricing with your competitors. Are their products cheaper than yours? Can you lower the price without affecting your profit margins? Can you offer any enticing bundles of products or promotions to attract customers?

You must always frame your products not as standalone but with others in the eCommerce market.

2. Upload clear imagery of products

High-quality imagery can make or break an online sale. Consumers want to see the products they are buying so they know what to expect when the product arrives.

Your image quality also reflects your professionalism as a seller. Blurry, unclear images do not give the user a great first impression of your products. Avoid this potential obstacle by uploading several high-quality product images from different angles to demonstrate to the consumer that you are a professional business owner. 

Depending on your product, uploading images with helpful infographics can be a fantastic addition. For items of furniture, where measurements can be essential, showing the item’s dimensions in an image can benefit a user. 

‘Lifestyle’ images can also help create an emotional connection to the buyer. Lifestyle images show the product in use in a real-life setting.

3. Provide customer care

The customer is king, which has never been more apt than in the modern, online retail environment. Great sellers provide an excellent customer experience; otherwise, users will head and shop elsewhere since there is so much competition. What does excellent customer care look like?

Ensure customer inquiries are dealt with promptly and take note of customer feedback, both negative and positive. Listening to customer feedback, and adjusting accordingly, should be a fundamental building block on the way to building a successful eCommerce store. 

Of course, if you pay attention to the customer experience and reap the significant rewards of positive reviews, this can act as fantastic social proof for your products and service. For example, Lazada shoppers regularly check reviews to see if they want to do business with a Lazada seller.

The modern customer appreciates choice, so offer numerous payment methods and shipping fee options at the checkout. 

4. Inventory management

Keep an eye on inventory with an inventory management system. It’s essential to keep track of the ins and outs, whether a particular item is low in stock or if a specific item has gone missing. Knowing precisely what is selling and what stock seems to be sitting at Lazada’s fulfillment center can help inform your future business decision-making. 

5. Invest in digital marketing

It is helpful to explore the power of different channels to bring traffic to your product pages. There are various digital marketing strategies to employ to do this, each with its multiple pros and cons.

You could try:

• Paid ads on social media.
• A comprehensive content marketing scheme based on search engine optimization, including blog writing on your website. 
• A b2b marketing strategy, including email campaigns, for example.

Through social media marketing and other strategies, you can raise awareness of your product offering and hope to improve conversion rates for your business. Experiment with these strategies to see what works best for your context.

Lazada selling fees

There are no fixed fees, listing fees, or hidden costs when selling with Lazada Singapore. Lazada does, however, charge a commission fee between 1 and 4%, depending on the product category. 

Lazada Singapore activates its commission fee on your account once you’ve sold the items and they reach the customer. Besides Lazada’s commission, you must also pay GST or value-added tax. 

The GST applicable to Lazada SG is 7% of the product’s price, but this percentage will vary depending on the country you are operating in. Likewise, your shipping fees will also vary depending on the product item and which country you are shipping to.

Finally, the total sale price is also a 2% processing fee. These costs are relatively minimal compared to other online retail stores, enabling sellers to start selling on Lazada without too much initial investment. 

Summing Up

Lazada is designed to make shopping easy for customers through mobile and web access. It offers multiple payment methods, excellent customer care, and free returns. And sellers also access customer analytics and sales and marketing metrics from the Lazada seller center to track how well your business is doing.

Frequently Asked Questions

Is it easy to sell on Lazada?

It’s very easy to sell on the Lazada marketplace. You simply need to fill out the registration form, and then you are ready to sell your goods. 

What are the fees for selling on Lazada?

There are no fixed payment fees, listing fees, or hidden costs for online merchants on Lazada. However, there is a commission fee, so check the details before signing up.

Can I sell as an individual on Lazada?

Yes! Anyone with a bank account can apply to become a marketplace seller on Lazada.

Can I sell in Lazada without business registration?

Registration and a business license are not always required for eCommerce sellers on Lazada. The individual seller account is for people who have just started selling online. New businesses are provided with an individual seller account that doesn’t need a business license.

The contest was won by Dana Wilde, the #1 bestselling author of Train Your Brain, who delivers motivation, marketing ideas, and business tips designed to break through limiting beliefs, and manifest freedom and success in one’s business. 

Dana Wilde was ecstatic to find out that she was the lucky winner picked for the opportunity to choose the business of her dreams and run it. 

Flippa couldn’t be more excited to provide a first-time buyer with the chance to start their entrepreneurial journey online with a Stacked Marketer partnered contest.

A Once In a Lifetime Opportunity

Dana first learned about the opportunity after reading Stacked Marketer’s newsletter about the contest. 

“When I saw the chance to win a $25,000 business, I had to do it!” Dana said. “Flippa has been out in the market for a very long time. Very reputable service, it’s really incredible that they exist.”

Although Dana had known about Flippa for a while, she never considered herself to be someone who was in the market for purchasing a business. 

True to her brand of having a positive mindset, Dana shifted her way of thinking about what she wanted. “I started thinking about this, and thought, I could win this. I would like to win this. I knew there were certain steps I had to take to prepare my brain for winning,” she says. 

In her positive mindset, Dana explains that in order to attain something, you’d have to train your brain to prepare for that “something” as if it were already there.

She applied this thinking into practical, actionable steps and went on Flippa’s website in search of possible businesses she could purchase for $25,000. To become familiar with the process of acquiring a business on Flippa’s marketplace, she purchased a business for $150 before actually winning the grand prize.

Immediately, the self doubt started creeping in.

“You’re getting push back. You start to have that argument in your head with your brain, then find a different way,” Dana said. “In this particular case, I let go of the outcome. I knew I wanted to get to the feeling like I already won.”

Dana started with positive affirmations about winning the business, like, “winning this business would be fun”, “this sounds like fun”.

Ultimately, Dana told her email list subscribers about the contest and the benefits of the opportunity, presenting the opportunity as a fun project to manifest. 

“I don’t get many opportunities to manifest, so I love using my brain to get what I want,” said Dana. 

And she did. When she opened her email one day and saw the announcement that she had won, immediately she knew her brain had allowed her to elevate her training to a different level, in what she calls “brain power.”

Finding a Business on Flippa Successfully

After receiving notification that she won the $25,000 business prize, Dana met with Craig from the Flippa Finder concierge service. Craig Matlock. 

The free service teaches buyers how to use Flippa’s marketplace and find the exact listing potential buyers want. 

For first-time buyers, acquiring a digital business can be daunting, by offering the Flippa finder service at no charge to the buyer, Flippa can give new users the support they need to find removes the obstacles holding potential buyers back from acquiring the business of their dreams.

Through Flippa finder, Dana was able to receive a step-by-step walkthrough of the platform and understand how she should think about her listings search. 

Dana was then presented with a set of listings for review based on her listing mandates and criteria and was provided with an in-depth analysis of what Flippa did and did not like about each deal. 

Through Flippa finder, Dana was able to receive a step-by-step walkthrough of the platform and understand how she should think about her listings search. 

“I was beyond excited to start jumping into this,” says Dana. “This is a viable investment strategy that I never thought of before, being able to have businesses that work for you.”

—

Ready to own the business of your dreams? Check out our First Time Buyer’s Guide.

If you want to shift the way you think about the world around you in a positive way, listen to Dana’s podcast at danawilde.com/podcast.

Learn how to train your brain with Dana Wilde at danawilde.com.

At the age of 22, like many aspiring entrepreneurs, Jessica from Perth, Australia had various ideas for businesses to jumpstart, which ultimately led to an exit with Flippa.

Ultimately, her love for fashion and Instagram won over, and with a background in digital marketing, Ete swimwear was born in 2016.

In less than 7 months, the swimwear ecommerce business transformed into a full-fledged operating business with international warehouses, systems, and processes. 

“I’ve found my passion in helping other women build their confidence, business, mindset, and really make anything possible,” Jessica says. 

This confidence is a trait that Jessica possessed in herself. In 2019, she was running a total of 5 businesses.

But as any entrepreneur can attest, running various businesses had its challenges. Ensuring that these businesses were operating and scaling successfully led to burnout.

“I thought, there’s no point in holding onto this,” Jessica says. “That was amazing, that was part of who I am, my journey, but I am opening myself up now to what gets to be my new chapter.”

This new chapter meant discovering Flippa.

Finding the perfect buyer pool

“Being on Flippa allowed me to reach people all over the world,” says Jessica. “This is awesome because it opened me up to a global buyer base and a lot of my customers and warehouses are in the U.S.”

Like many business owners, building a business from the ground up was personal. It meant hours of work, dedication, creativity, and perseverance. It only made sense that whomever was to acquire Ete Swimwear was going to possess the same level of passion and connection to the brand. 

“It was really amazing – there was a lot of interest in the brand,” says Jessica. “It really came down to one buyer that was really passionate about taking the business to the next level.”

No setbacks, just gains

When it comes to selling a business, Jessica is cognizant of the hesitation some business owners may face.

Many entrepreneurs who start a business don’t necessarily have an exit in mind. Selling a business shouldn’t necessarily be perceived as failure, but rather as an opportunity to regain one’s sense of time, freedom, wellbeing, and financial freedom. 

For Jessica, though her business did not take up much time, an exit allowed her to free up mental capacity, improve her overall wellbeing, reduce stress, and attend to other areas of her life.

“Flippa has changed my life in being able to sell my business,” Jessica says. “Other people will find Flippa helpful because the alternative is to either sell it to people you know or an old school broker who quite doesn’t know how to sell online businesses or ecommerce.”

Today, Jessica is a business and mindset coach. You can visit her website at https://www.jessicawilliamson.com.au and listen to more from Jessica when she joined us on Humans of Flippa.

This doesn’t mean that earning a passive income comes easily. It is usually the result of a considerable amount of time and effort poured into a business venture. It is a reward for hard work and wise business decisions over time. Plus, it’ll help you to put more money into your savings account and get rid of any student loans or credit card debt that you might have.

If you’d like to explore the potential of earning a passive income, this article will discuss how you can get started and important things to consider beforehand. We’ll also discuss seven business ideas that have successfully generated passive income for others.

What is passive income?

Most businesses require continuous effort and allocation of resources to maintain a stable financial future. If the owner steps away from the business or withdraws its support, keeping it afloat may be a struggle. This is the fundamental difference between passive income businesses and traditional ventures. 

While both businesses take the same amount of upfront time and effort to get running, there will come a turning point where a passive income business owner can step away to focus on other things. In contrast, the business continues to generate revenue. 

As with any business venture, passive income businesses also carry risks. For example, the environment in which a passive income stream thrives can shift over time and make a previously profitable idea no longer viable. Even with the best passive business models and infrastructure, business owners must remain vigilant and react to these possible changes. 

Before you get started

Like all businesses, passive income sources will not start generating substantial income without a proper plan in place. If you have no experience running your own business, you must consider a few simple things beforehand. 

Firstly: Be realistic about what you will achieve through this venture. Passive income is not the get-rich-quick answer often touted to budding entrepreneurs. You may initially see very little return for what will likely be considerable early groundwork. This can be disheartening if you enter your business expecting to be financially free after only a short period. Try not to be too attached to outcomes and understand that it may take time to see a return. 

Secondly: You can quickly become jaded with your business if it’s not something you are passionate about. Many sources of passive income are mechanical. This means there is little need for creativity and expression once the infrastructure is in place. 

If making money is your sole objective, then this may be no issue, but if you want something meaningful as well as profitable, then you might want to set up a business that you are passionate about. 

With these two considerations in mind, the best way to generate passive income is to start small and find a business niche you are interested in. You will be far more invested when you’re putting the work into something you care about.

Top 7 passive income ideas

If you’re not sure what kind of passive income stream to go for, consider the following business ideas that have been proven to work for people worldwide.

1. Start a dropshipping business

Dropshipping is considered to be one of the most accessible routes to starting a business, especially for those with limited experience. With dropshipping you will set up an eCommerce store to advertise and sell products from other companies.

The reason why dropshipping is so simple is that there’s no need to maintain your own stock. Instead, orders placed on your eCommerce site are sent straight to the manufacturer, who coordinates packaging and shipping. 

Your main role with dropshipping is to advertise the manufacturer’s products. You’ll start seeing a passive income when you successfully build an audience that repeatedly returns to your eCommerce store. 

Check out our beginner’s guide to dropshipping for more information on how you can get started. 

2. Sell digital products

Selling digital products is another great way to secure a passive income without worrying about stock inventory or management. Digital products you can create and sell include high-quality ebooks, online courses, or stock photography. 

The easy thing about selling digital products is that you only have to create the product once, and then you can focus all of your efforts on marketing and optimizing your online store. If you have the skillset to create any of these products, you may have a lucrative passive income business. 

3. Start a print-on-demand store

A print-on-demand store is a natural hybrid of the first two options and another effective way to generate a passive income through eCommerce.

This type of online business involves creating your own graphic designs, which you can then print on clothing, mugs, and other accessories. Most print-on-demand platforms rely on dropshipping services, so when a customer orders one of your designs, it goes straight to the manufacturer, who then takes care of printing and shipping. 

Print-on-demand can be an extremely lucrative passive income stream if you already have some form of an online following or loyal fanbase. You can also collaborate with other designers and websites to broaden your potential audience pool.

4. Peer-to-peer (P2P) lending

This passive income stream involves lending money to individuals in need of financial assistance and earning interest through repayments. The more you lend, the more income you will receive.

P2P lending carries a potential risk not found in other passive income streams. Although you can use reputable facilitators to check someone’s borrowing history, you still lend money to people you do not know. Individuals using P2P lending platforms may have been rejected from traditional bank loans due to bad credit scores. 

To mitigate the risk, it’s a good idea to spread your wealth across several small loans until you have built an in-depth knowledge of the process and risks involved.

5. Create a job board

A lesser-known passive income idea is to create an online job board and charge businesses to post their job vacancies. Recruitment agencies and companies will always need a place to post their jobs, so why not provide them with one?

Job boards don’t require much upfront cost but need a considerable investment of effort in order to become viable. If your job board gets no traffic, then businesses will not see the benefit of posting their job opportunities. As a result, you’ll have to work numerous hours to build a large pool of potential candidates or website traffic before businesses consider working with you. 

6. Buy and sell websites

Many entrepreneurs are steadily building wealth and turning a profit each month by buying and selling websites. This may require a significant initial investment, especially when purchasing a website that already generates good revenue, but the payoff will be worth it. 

Many websites that are bought and sold, such as successful dropshipping and affiliate sites, already have the ideal infrastructure and connections. This means you may not have to put much effort into reorganizing the business and can reap the benefits of a passive income once you have paid off your initial investment. 

Check out our ultimate guide to buying your first website or our top advice for successful affiliate marketing if you want further guidance on this passive income stream.

7. Purchase vending machines

Buying a vending machine can be a viable source of passive income. The first step to earning a passive income through vending machines is to secure a good location and buy a machine. After that, you have to take care of product delivery and occasional maintenance costs. 

Then you can step back and let your vending machine earn money for you. Once the sales revenue from snack purchases matches your initial investment, any subsequent money you earn will be passive profit. 

Side hustle ideas

Here are some side hustle ideas to get those creative juices flowing, which will help you come up with ideas to generate some extra money online.

• Start building a blog.
• Selling stock photos.
• Rent out your car.
• Lease out unused parking spaces.
• Earn thousands of dollars by becoming a social media influencer,
• Start a YouTube channel and earn money from the YouTube Partner Program.
• Starting a blog and selling online sponsored posts.
• Join an affiliate program and get started earning commissions.

Final thoughts

Generating a passive income to secure an optimal work-life balance remains the dream of many. Suppose you’re prepared to do the initial work, manage the initial costs, and execute your plans carefully. In that case, you may one day find yourself in possession of a lucrative passive income business.

At Flippa, we’ve been helping new and experienced entrepreneurs buy and sell their online businesses since 2009. With over 3 million users and 300,000 digital assets sold, we have the necessary tools and expertise to help you maximize what can be achieved with your business.
If you’d like some guidance on buying and selling your first business, or for any other inquiries, don’t hesitate to contact us. To keep reading our insights, check out our guide to what buyers are looking for in an online business.

Raising business capital can mean the difference between success and failure, whether you’re funding a start-up company, entrepreneur, or established organization. You might have heard a range of stats about small businesses failing — with 80% of startups failing within their first year, funding is vital to ensure your business ideas get off the ground. 

How do you raise capital to start a business?

Setting up a new company requires more than an inspiring idea and business plan. You need start-up capital for business ventures to come alive. Businesses are expensive; you must pay for resources, employees, licensing, insurance, marketing, and more. Money doesn’t grow on trees, but there are plenty of ways to secure funding for your business.

Funding strategies range from launching a crowdfunding campaign to approaching investors or applying for loans. Throughout your organization’s lifetime, you might need to secure capital for your business to scale, modernize, and thrive.

Whether starting a side hustle for passive income or launching your new career, start-up capital is vital for success.

Why seek funding? 

Whether your business is brand new or you have big growth plans, you may need additional funding for corporation finances. Sometimes, it might be as simple as boosting production, improving cash flow, or buying another company. Alternatively, you may need to apply for loans or seek new investors. 

You might need to seek financial capital because:

• You need sufficient working capital to fulfill growth ambitions.
• You need to purchase new assets or equipment.
• You’re still in the start-up stage and need funding to get your feet off the ground.
• You need funds to expand operations.

Whatever your goals and fundraising methods, it’s vital for business owners to have a strong pitch. Communicating your business’ prospects strongly will support your funding efforts. 

What are the three sources of capital?

There are three sources of capital: working capital, debt capital, and equity capital. You’ll typically rely on debt or equity capital as a start-up founder. However, established businesses already have revenue streams. 

• Working capital represents the operating liquidity available and refers to a business that raises money by increasing production.
• Equity capital refers to businesses that issue shares or stocks to investors. In return for funds, shareholders own part of the business and receive dividends.
• Debt capital means taking on business lines of credit and loans to fund operations. You have to repay debts with interest.

Equity vs. debt capital

Businesses can use debt or equity capital to raise money for business finances. Debt financing usually costs less than equity, given debt has recourse—but both have pros and cons.

What is the difference between debt and equity capital? Debt usually comes in the form of bank loans or corporate bonds. On the other hand, equity financing is a form of cash exchanged for company stocks. Debt holders charge interest, while equity investors depend on stock appreciation or dividends for returns.

While borrowing money is a common capital-raising strategy, many businesses prefer not to take on debt (or more debt). Private equity firms may need to go public by issuing an initial public offering (IPO) for equity investments. Public companies may raise capital through an angel investor or VC firm.

Pros and cons of equity vs. debt capital

The main benefit of raising equity capital is that the company does not have to repay investments. Instead, shareholders rely on returns from market performance, receiving wealth from dividends and stock valuation.

However, the disadvantage of equity capital is that shareholders each own part of the business, diluting ownership. Shareholders each have a say in business decisions to ensure the company remains profitable. 

On the other hand, corporate debt bonds pay a higher yield because they carry a higher risk. While this is an excellent method for funding your business, the downside is that you have the additional burden of interest. Interest payments are unavoidable and payable regardless of business performance. In a bad economy, businesses might find debt capital outweighs revenue.

How to raise capital?

There are many approaches to raising capital for funding operations. Depending on your business models, you might adopt one of the capital raising strategies below.

1. Bootstrap your business

If you’re operating in an industry that doesn’t require a lot of start-up capital, you might be able to fund your venture. Bootstrapping is a self-starting process that grows without external influence or assistance.

Even if you don’t have enough in your savings account, you might apply for low or no-interest business credit cards. A credit card will allow you to borrow smaller amounts of cash without interest payments. Banks might look at your credit score if you have no evidence of business finances. 

Funding the business carries risk, but if you believe in your vision, you should feel comfortable investing in yourself. Moreover, investing in personal savings shows confidence that might boost your chances of external investment down the line.

2. Launch a crowdfunding campaign

Last year, according to data from Fundera, there were 6,455,080 crowdfunding campaigns. With the rise of social media, crowdfunding sites have taken off. Businesses use crowdfunding to raise money to launch their start-up, produce new products, or grow. Crowdfunding allows connecting with like-minded people who care passionately about your industry and business idea. 

Unlike venture capitalists or investors, anyone can crowdfund. You might find loyal customers or members of the public donating as little as $10 or established investors offering large sums. Moreover, crowdfunding can help gauge interest in your products and services to understand what’s resonating with people and what’s not. 

3. Apply for a loan 

We mentioned debt capital. Business loans are the primary source of funding for small businesses. Small business loans offer favorable rates and terms. When applying for personal loans, you might need to meet the following requirements for approval:

• You have been in business for two or more years.
• Your business has a strong annual revenue (typically $100,000 or more).
• You have a good credit score.

You could opt for invoice financing if you have outstanding invoices to get money more quickly.

Alternatively, consider SBA loans if you cannot get a loan or line of credit from traditional financing institutions.

4. Ask friends and family

Asking friends and family to fund the business is a viable option for many. Consider people you know who might believe in your business plan and feel passionately about your vision. Ensure you are clear about the risks and be realistic about how much money you will need. Additionally, agree on what form the funding will take; it could be a loan or equity in your company.

5. Find angel investors

Accredited angels invest in businesses individually. An angel investor has a net worth exceeding $1 million or an annual income of more than $200,000 and typically operates alone. 

To seek your source of funding from angel institutional investors, you should put together a solid business plan and prepare an excellent pitch. You need to capture their attention with enthusiasm and promising future business potential.

6. Venture capitalists

A venture capital (VC) firm typically wants to invest in more mature companies than angel investors. Therefore, venture capitalists are a good funding source for growing businesses with proven and scalable products. Venture capitalists are more involved in investor relations and may wish to have more say in managing daily operations. 

Investors will want a pre-money valuation and regular post-money valuations to ensure you put their money to good use and practice proper wealth management.

Best practices for raising capital

The process of raising money for your business might seem intimidating. Here are a few best practices for raising capital.

• Due diligence: No matter the funding type, you must practice due diligence to ensure you get a good deal — especially with financing, venture capitalists, or angel investing.
• Organise yourself: Ensure you keep proper bookkeeping, whether a small business or bootstrapping. A venture capital firm, investors, or other financial institutions will determine whether your company’s books are in order. Ensure you have all the necessary documents and evidence to ensure your business checks out. 
• Business pitch: Fine-tune your value proposition to sell yourself to others to convince them to offer the money to fund your organization. Showcase the aspects that make your business unique. 
• Creativity: The fundraising process is competitive. On average, four million new businesses start every year in the US — meaning you have a lot of other entrepreneurs to compete against for start-up funding. Get creative with your fundraising efforts.
• Enthusiasm: Sharing your passion for your industry and your business idea will drum up more support, especially when crowdfunding. 

How Do I Find Investors? 

Reaching out to investors might seem intimidating. How do you get in contact with them? What should you say? 

When approaching friends and families, you should prepare your pitch and professionally approach them. If you’re considering reaching out to angel investors or venture capitalists, you’ll need to get their contact details. Several online platforms connect business owners with investors.

Alternatively, you can speak to a broker about investment opportunities. A broker will help you organize a business valuation and match you with potential investors. They’ll provide expert advice throughout the transaction. 

Businesses raise capital for all sorts of reasons. Whether an emerging company or a well-established online business, raising funds is vital for growth and success. With many opportunities to secure funds, ensure you carefully consider your options. Each business model will have different requirements. Think about the best approach for success.

Frequently asked questions

What is the cheapest way to raise capital? 

The cheapest way to raise capital is to use retained or working capital — your funds and revenue from production. However, the best long-term solution might be to seek investors or apply for a business loan. That said, equity and debt capital costs more.

How can I raise money to start a business without a loan?

Business loans aren’t the only way to raise capital. Seeking investors or asking friends and family for funds is a viable way to raise money to start a business. Investors typically take a share of the company, diluting ownership. Friends and family might also take shares or offer the money as a gift or on a loan basis.

Now more than ever, Americans across the country are prioritizing flexibility over pay. If the pandemic taught us anything, it’s that time is precious. It’s a commodity.

The working class is catching up: they want freedom, they want autonomy, they want to be their own boss. 

But when we talk about freedom, we can’t leave out equity. 

The question is, what does this “freedom” mean for women across the world?

With more than 11.6 million women-owned firms generating $1.8 trillion in sales, now more than ever, more and more women are seeking financial independence. 

Here at Flippa, we strongly believe that women have purchasing power, which is why we’re aiming to make the space of buying and selling digital assets accessible for women across the globe. 

We know that buying businesses eliminates the initial hurdles of building a business from the ground up, which is why we’re proponents of acquisition entrepreneurship and believe that women everywhere can take control of their financial future through this viable career path. 

This begins with education, resources, and the tools to succeed. It also means telling the stories of those who were brave enough to take risks and pivot in their professional journeys.

Meet Stacy Caprio

Our team caught up with Stacy Caprio, native of Chicago, now living in Austin, Texas. 

Stacy has previously shared her story about buying sites on Flippa and the lessons she’s learned. 

At some point in our lives, we may have experienced this feeling in our 9-5 jobs in one form or the other: it doesn’t matter how much value we provide, or how much work we do, the feeling of being limited to an office space can be taxing to the body and mind.

Stacy knows this feeling all too well.

Going on long walks during her lunch break provided that break in routine, but even then, the thought of having to go back to work for someone else loomed at the back of her mind. 

“You’re kind of trapped even if you do an amazing job until you increase revenue,” says Caprio. “Your salary doesn’t really double. The effort you put into it isn’t correlated with what you get out of it. I was so unhappy with my lack of freedom. It just culminated to the point that I was so unhappy that I was looking everywhere for how I can do something that is not this.”

That all changed when Stacy started reading more income-report blogs on how others made money online. With plenty of trial and error, this led her to start buying content sites on Flippa and ultimately running a portfolio of digital assets. 

A life of financial freedom and flexibility 

Today, she lives not too far from downtown Austin, her condo in the West End neighborhood overlooking the blissful skyline of the Texas capital. 

In the mornings, she has the decision to work wherever: her condo, a space with natural light and calm, or just a few feet away outside her door, where she walks to the common area with a cup of coffee, the skyline backdrop brimming just a few miles away. 

It’s a life of comfort, flexibility, and hustle, but she wouldn’t have it any other way.

“I love having control over my time each day and how I make money,” says Caprio. “Flippa enabled me to have control over my time, which to me, is the biggest benefit over money.”

“Flippa enabled me to have control over my time, which is the biggest benefit over money.”

She recalls a time when the highlight of her day was looking forward to stepping away from her cubicle for a walk. Now, she decides when or where she can go for a run between work and has full agency over the strategy of her investment portfolios.

For Stacy, these simple life joys make all the difference. 

“I really like seeing my effort produce results that I get to benefit from,” she says. “For me, money is actually a big motivator. But it’s more my financial freedom.”

Investing in Digital Real Estate for Real Estate

Now, Stacy is a certified realtor and is diversifying her income portfolio by investing in real estate. She’s recently purchased a few expired domains and real estate websites, and just went under contract for a second duplex outside of Austin. 

“I’m using all my profits from my Flippa sites to buy two duplexes,” she says. “My biggest income is my Flippa sites, which has enabled me to work for myself for the past 7 years.”

“My biggest income is my Flippa sites, which has enabled me to work for myself for the past 7 years.”

In conjunction with her Flippa profits, she’s also pursuing standard revenue financing to invest in physical real estate.

Although Caprio does see the importance of investing in digital real estate, she strongly believes that women should diversify their income portfolio if they’re looking to make consistent revenue streams. After all, this is a lesson she’s learned when it comes to dabbling in online assets.

“Websites can be a little more volatile even though they have high returns,” says Caprio. “I think it’s good to have online assets but also physical assets. You don’t want your money eaten away by inflation.”

And she’s right. This year alone, the U.S. Bureau of Labor Statistics reported an increase in consumer prices up 9.1 percent, the largest increase in 40 years.

Gaining confidence in a male-dominated industry

Attaining financial flexibility can be intimidating, especially in a male-dominated industry where a culture of financial inequality persists. 

Although the gender gap in pay has remained relatively stable in the U.S. over the past 15 years or so due to measurable factors like educational attainment, occupational segregation, work experience, and an increase in higher-paying jobs traditionally possessed by men, women as a whole still continue to be overrepresented in lower-paying occupations relative to their share of the workforce.

According to research by My Confidence Matters, 70% of people admit to regularly lacking confidence in themselves when it comes to their careers and speaking up at work. However, there was a notable disparity between men and women’s confidence levels, with more women than men experiencing a lack of confidence in the workplace (79% of women vs 62% of men).

When Forbes looked into what specifically at work left women feeling skeptical, over 75% respondents said they aren’t confident in their work relationships, and lack of supportive environments, growth and development opportunity and professional networks.

It’s crucial to note that this onus should not be put on women entirely. Rather, women are likely equally confident. It’s the responsibility of the workplace to make institutional changes to ensure equity.

It’s the responsibility of the workplace to make institutional changes to ensure equity.

“When I worked in online marketing, a lot of the women even though they could do something just as well as the men, they wouldn’t have the confidence in it, especially if it was their own idea or direction,” says Caprio. “I think you have to believe that you can even do it to purchase a business. You have to have the confidence to take the first step.”

For Stacy, the confidence to become her own boss started with reading case studies of women who were pursuing the same path she was interested in. 

“Really I was inspired by other people,” Caprio says. “I wouldn’t have been able to do it if I didn’t see other people succeeding doing the same thing.”

Caprio has always known that she wanted to work for herself in some capacity. It also helps that she comes from a family of entrepreneurs. At a young age, she would run lemonade stands and started her own swimming lesson business. Her father and sister work in sales and her mother has her own business in exercise consulting, artwork, and lettering. 

Advice for women

“Decide what your end goal is and be clear on that and make sure to write it out,” says Caprio. “You have to really know what your goal is in order to get there. Once you have that, start making a plan with actionable steps, and work backwards. Use case studies of successful people so you know what you need to do each day. Without action, you won’t get there. Write it down and make sure you’re taking action every single day.”

—

You can keep up with Stacy Caprio at her.ceo where she discusses all things making money online, and listen to the her.ceo entrepreneur podcast and learn from those who have already achieved their dreams so you can learn how to start working toward yours.

If you haven’t already, be inspired and step into your power at Her Future 2022. Snag your FREE ticket at https://flippa.com/events/her-future.

When it comes to knowing a thing or two about starting a business, Mark Segal is no stranger to the act. After all, he holds 15 years of startup experience under his belt.

The business owners resides in Cremorne, a mini version of Silicon Valley, an inner-city suburb in Melbourne, Australia, located just Southeast of Melbourne’s Central Business District. Flippa is a neighbor right next door.

Just a few years ago, when the online business space experienced a burgeoning swell of Amazon businesses coming to the forefront, Mark came across an ad on Facebook advertising Amazon FBA training and learned how to operate an ecommerce business.

That’s when the idea for a designer wall clock company blossomed to an ecommerce store called Marksson. Soon, Mark found himself flying out to China to meet with suppliers. The business was a mid-range, affordable luxury sort segment where Mark could create something that looked high end, but priced somewhere in the middle.

He set systems and processes in place until the business came to a position where it was running on autopilot. As his focus began shifting away, he knew it was time to find a new owner and place the business up for sale on Flippa. His digital and design agency business was taking up more of his time and Mark knew he couldn’t devote the attention that his business deserved.

Instantly, his listing received massive buzz on Flippa’s marketplace.

“I really sort of put it on there just to gauge the market. It exceeded my expectations. It was pretty quick from then on,” says Mark. “The team from Flippa was really like a major help. It was kind of like a concierge service where the guys jump on and they give you all sorts of advice, whether it’s optimizing the listing, or helping with valuation.”

A Speedy Sale

Mark knew the business had to go to someone who wanted to own a designer homewares/lifestyle brand without all of the headaches of creating the actual business. At the time of sale, the business was a perfect springboard to expand into a D2C (direct-to-consumer) company where the new owner could build on the brand and introduce other home and office products.

When Marksson was bought, the 3-year old profitable Amazon FBA ecommerce business had a seller rating of 91%, and was sold along with brand assets, social media accounts, and more.

Marksson was listed in a 30-day auction and in just 1 week, the deal was closed and the business was sold.

“I was comfortable in the end having it sold on Flippa,” says Mark. “There’s so much opportunity that I feel like there’s a lot of talk around buying investment properties. But I feel like you can get the same benefit from the right assets online. You can jump on Flippa — there’s a lot of opportunity there.”

Today, Mark operates a successful SEO agency where he works with various kinds of businesses and provides services like website speed optimization and spec link audits to clients.

Ready to buy your first online business? Check out our First-Time Buyers Guide: Buying Your First Online Business.

With this grit and hunger for success, it only makes sense that the strategic business owner resides in Las Vegas, a burgeoning hub for entertainment, tourism, and bustling entrepreneurship.

For Ron, the flexibility of having agency over his schedule and becoming his own boss was too alluring to pass up. So in 2014, Ron made the pivotal decision to quit his 9-to-5 job.

Today, Ron’s lifestyle allows him to live comfortably, set his own schedule, and enjoy the fruits of his hard work.

A Successful Exit With Flippa

Getting to a successful exit required risk-taking, and as Ron puts it, “an element of creating your own luck”. He knew he was no different to hundreds of other entrepreneurs out in the world dreaming of success. So when he saw an opportunity he knew he’d have to work hard to create his own luck and take advantage of every chance he had to succeed.

Tired of the daily grind and the corporate bureaucracy that he’d lived for many years, Ron took a big risk and quit his job. It was a risk, but he was willing to take it.

Now that he was technically unemployed, he needed to make his next move. He bought a website which he initially saw as nothing more than a small side project. The website was JobsForFelonHub.com, the #1 online resource to help former felons find employment after returning to the community.

What began as a side hustle, turned into thousands of hours of work. Ron saw the gap in information in the niche and set to work creating a one-stop-shop for users.

By the time Ron was ready to sell his business, JobsForFelon was more than just a one dimensional resource. It was a business with a recognisable brand, trusted by users in the space, with an engaged community on social media.

Ron had built a Facebook community of 10,000 followers and an email base of 20,000 subscribers. Along with an engaged user base, another appealing factor for buyers was the businesses growth potential. Easy wins such as reviewing and revising content for search engine results page (SERP) ranking, selling informational products, and selling leads to lawyers, were all possible growth channels that buyers could see.

Ron sold the business on Flippa’s marketplace for $500,000, a sum that surpassed his initial expectations. Support from the Flippa Team helped Ron to realise the value of what he had built, setthe price accordingly, and find the right buyer for the business.

“I was blown away because there was a lot of hands-on help,” says Ron. “Account Managers had calls with me explaining, how I should list the business, and how much I should set the price for. They really helped me with the valuation and it actually went over what my expectations were.”

Related: What Sellers Need To Know About Valuations

“[Flippa] helped me with the valuation — it actually went over what my expectations were.”

— Ron Stefanski, Website Entrepreneur

This wasn’t Ron’s first experience on Flippa, but it was his most successful. Ron has known about Flippa for years, previously selling a small site on the marketplace for $18,000.

“This big exit that I was able to have was definitely life-changing.”

— Ron Stefanski, Website Entrepreneur

More Than Just a Business

What made JobsForFelon appealing was how quickly it gained popularity due to its detailed resources.

“I never expected it to grow as large as it has and it’s been an amazing ride,” says Ron. “This is one of the few opportunities where you get to buy a website and feel genuinely good about what the business does as it’s not just very profitable, but also incredibly helpful to an underserved market that genuinely needs this resource.”

For Ron, owning the business was personal. 

As he was scaling the company at the time, he was approached by someone he knew with a drug problem and multiple felonies on their record. Ron was able to assist the person with finding a job, and the individual ultimately turned their life around for the better. 

And there were others who saw the benefit of the work Ron was doing. At the time of sale, the site had garnered support from government agencies, reentry programs, and educational institutions. 

The Strategic Mind Behind the Business

The business that we see today has grown in leaps and bounds from what Ron initially acquired.

When it came to scaling JobsForFelon, Ron was extremely strategic with his approach. He developed an email list and asked people what they needed, expanding the website to meet the desires of his target audience. 

Leaning on his historical success in the job market, Ron was able to find a few businesses in the same niche as his, identifying the gaps and building a strategy to organize key information to fill those gaps that competitors were missing. 

“If I see a hole in the market, I will go and attack it,” says Ron. “I’m ferociously competitive.”

Ron also emphasizes the importance of buying a site that’s already established, even if it’s smaller. All that’s left to do is to pour gasoline to an existing business and ignite the flames of potential.

Related: 20 Questions To Ask When Buying a Website

Today, Ron manages a portfolio of digital assets and lives the life he always dreamed of.

“I don’t need to be a multimillionaire. I just don’t want to stress out about my next paycheck,” he says. “Now we’re comfortable – that’s probably the best thing it has given me.”

For Ron, having a laptop and internet connection, as simple as it may be, opens a world full of possibilities. Today, you’ll find him exploring these possibilities under the Las Vegas sun.

Ron is a well-known expert in the online business industry and has a whole portfolio of websites and YouTube channels that take up most of his time. If you want to learn more about, or from him directly, visit OneHourProfessor.com.

Next Steps

Inspired by this story? Read up on others who have successfully bought and sold their businesses here.

If you’re ready to sell, check out our First Time Seller’s Guide, or start looking for a website to buy.

“School was not my thing,” says Josey. “I’ve never really done well with authority so I tend to work for myself.”

This unconventional path led Josey to Flippa, where he spent a decade going to the marketplace periodically to see the types of assets and business models users were interested in and ultimately purchased Body for Golf for $250,000 and Easier Golfing for $101,000.

“The platform is easy to use, you can get a hold of somebody in the Flippa team if you need to ask questions,” Josey says. “And [Flippa] does vetting and verifying for the seller before they are able to list. There’s a certain amount of safety involved with that.”

In the past, Josey had always started his own business. This time things were different: he decided to take a different approach and buy a business instead.

Finding the Perfect Fit

Josey knew exactly what kind of business he was looking for: digital information products and monetizable newsletters. He knew that he wanted to build upon an existing business and sell the digital products an infinite amount of times. 

That’s when he came across the listing for Body for Golf, which instantly piqued his interest.

Maliha, Flippa’s Account Manager, encouraged Josey to hop on a call with the seller, and immediately he began conversing with the seller on Flippa’s deal room messaging app, a feature that allows sellers to facilitate evaluation and management of various interested parties.

The seller was ready to start a new chapter in her life and was particularly adamant that the golf business went into the hands of someone who was passionate about the sport.

After all, the seller spent almost a decade working in online golf marketing, attended a high-performing golf academy, and worked on professional golf tours.

There were a stream of offers coming in, but ultimately Josey won because the seller felt reassured about Josey’s love of the game and genuine understanding of the business, an area that other potential buyers lacked in.

“I come from a family of golfers,” says Josey. “It’s a sport I’m passionate about. You’re going to have different experiences with different sellers. In this case, she built the business from the ground up. She had worked at it for a long time. That’s your life for a while – you want to make sure that whoever is taking it over cares about it.”

Merging One Business with Another 

At the time of sale, Body for Golf was a long-running top producing golf offer on Clickbank, had a high-converting email list of 8,000+ dedicated golfers, low time investment, and high profit margin. Affiliates drove most of the sales for the digital informational products, and the second stream of revenue was the email newsletter where affiliate links were included and the email list of users would purchase assets. 

Around the same time of purchasing Body for Golf, Josey was in contact with another seller for a business called Easier Golfing. 

Initially, he wasn’t planning on purchasing two assets, but the more he talked with both sellers, the more it became clear to him that the two businesses were complementary to each other. 

Easier Golfing sold a physical product and Body for golf sold digital info products and both assets had a newsletter. So Josey acquired both businesses for a total sum of $351,000 and merged the two businesses together, using Easier Golfing as the holding company.

“I thought there was an opportunity with direct sales to the digital products”, says Josey. “On the easier golfing side, I felt there was an opportunity to cut costs and increase the profits in terms of shipping cost.”

Once Josey set up a new shipping house for Easier golfing, it immediately freed up 10% of profits. 

Conducting Due Diligence

Due diligence throughout the process of purchasing both assets was important to ensuring a seamless deal-closing experience.

When it came to Body for golf, Josey found the process to be straightforward, with the seller providing proof of financial transparency.

“I had questions about prior efforts to sell the business, whether or not there was any organic social activity being done, and beyond the numbers, what sort of marketing activities had been tried and tested,” says Josey. “I was determined to discover the low-hanging fruit and pinpoint opportunities to quickly increase sales and profits in any way.”

The same kind of questioning applied to Easier Golfing, since most of the traffic to the website was paid. Josey inquired about the website’s organic traffic, the newsletter performance, click-through rates, and product reviews.

“We went through the due diligence, going through all the numbers, making sure that everything was true,” says Josey. “I thought it was a fair deal and went for it.’’

After both assets were transferred to Josey, both buyers stayed on board for a total of 90 days, assisting Josey with any questions about the businesses. 

Plans for the Future

Now, Josey is gearing up for sales during the fall season. 

“We’ve been very focused on increasing our margins,” says Josey. “We’ve wanted to keep the sales level the same and focus on how we get more profits, hopefully ready to see some growth in the fall and holiday season.”

When asked what advice he has for entrepreneurs, Josey says,  “There’s a lot of benefit to acquiring. Once you have experience running a business, it’s much easier to buy one. I’d tell them to go out and make their mistakes and learn, and then pull the trigger and buy one.”

“The first goal is to turn [your business] into a cash-producing asset,” Josey continues.  “Once you do that, you can decide whether or not you want to sell it depending on the cash flow.”

Today, Josey lives in his hometown of Philadelphia with his wife. The two are excited to welcome a baby girl in the fall. 

Ready to buy your first online business? Check out our First-Time Buyers Guide: Buying Your First Online Business.