Throughout most of recent history, businesses were either small, locally run shops like bakers, joiners and tailors. Or, they were large and long-lived multi-generational companies, passed down (usually) from father to son. The bar to start a business was extremely high, and in many ways, it still is. However, the internet has lowered that bar drastically, enabling and empowering so many people to start wonderfully unique and niche businesses. Let’s explore these ideas in more depth.

Bricks and mortar

There is a huge cost to set up a new business, and for most of recent history, only the wealthy could afford to do this. They could afford to buy a shop, a storefront, and start selling their wares. The more successful the business, the more likely they were to see an increase in profits, and for some, this was the primary goal. For many of these businesses, this is still the case today. If you weren’t privileged by your birth to have access to the substantial means to start a business, then there were few other options. Take for example, a loan from a bank, or raising investment. Back in the day, both of these means of financing were locked away from minorities and women, for centuries even. In order to apply for a business loan from a bank in 1800, you essentially had to already be a financially successful, “upstanding” white male. The banker was also a white mate, and if you were fortunate enough to attract investment, it was in large part in your ability to move among circles of white men. In some ways, this aspect of raising funding has not changed: most Venture Capitalists (VCs) are still white males. However, back then, almost all businesses were physical businesses, aside from the odd accountant or draftsperson (“draftsman” at the time). Now, we are seeing many businesses appear that do not require bricks and mortar at all. Thanks to the internet, there are now many cheaper ways to start a new business, and it is no longer necessary to own a physical shop to sell your wares or services.

Alternative funding sources

There are of course, still some businesses that require a lot of money, bricks and mortar. But, thanks to the internet, there are many ways to start a business with little or no money, and not a lot of bricks and mortar. There are many, many ways to raise money for your business now, and many of them are easier to access than ever before. So, you don’t have to be a white male to get funding. Let’s explore some alternative ways to get funding for your business. Most of the examples listed here are forms of crowdfunding. Crowdfunding is a great way to raise money for your business, and again, the internet has made it possible for crowdfunding platforms to exist. In fact, there are so many crowdfunding platforms out there now, it can be difficult to decide which one to use.

Crowdfunding platforms

• Kickstarter is a very popular crowdfunding platform, and it is a great way to raise funds for your new business. Anyone can kick off a campaign on Kickstarter, but it is usually the people with an existing product or service who are most successful on the platform. If you are running a Kickstarter campaign and you need a bit of help to make it successful, then please get in touch with us.
• Indiegogo is another crowdfunding platform. They are also very popular, and they are used by people who are starting businesses all the time.
• GoFundMe is another crowdfunding platform. It is a great way to raise funds for your business, and your start-up costs. Often the site is used for non-profits and raising funds for charity too.
• Patreon is a great way to access ongoing funding for your (already running) business. It is also a great way for your customers to support your business emotionally and give feedback.

Note: You will need to decide which platform will best suit your needs, this is not financial advice!

Popular and boring

In the 1800’s, if your livelihood depends on your new business succeeding financially, then you had better decide to sell something that you absolutely know people want and need to buy. Bread, ice, meat, clothing, etc. There’s nothing wrong with that, there is honor in that. But it is, you know, a bit boring. Why couldn’t we have many varied and interesting businesses? The answer is that if your business served a niche need, in 1800, there simply were not enough people in your town, village or city to generate the interest and demand to keep your business afloat. However, now thanks to the internet, there are literally billions of people online, and if only a tiny fraction of those people are interested in your niche, you can readily access many thousands of them. So you can carve out an almost infinitely specific niche for yourself. Who would have thought that cat urine enzyme cleaner would be a great business? Complete with celebrity appearance by rapper Snoop Dogg? Before the internet, a niche business like this would have never been able to reach enough customers in a small town, or perhaps even a city. However, thanks to the reach and depth of niches on the internet, this is now a real business, solving a real problem for real people.

Conclusion

More people than ever before can start a business. It can all be done from the comfort of your living room, without the need for a shop. There is no need to beg elites for funding, you can start a business without huge amounts of capital. The number of businesses that you can start has exploded; there are more niches than ever before. The internet has leveled the playing field for the better, now everyone can participate. The internet has truly democratized business.