The world has turned upside down. (As a Broadway fan, I have the Hamilton version of that line running through my head on repeat these days.) Small businesses all over the nation find themselves in a rapidly changing climate and making decisions based on state requirements needed to combat the spread of the coronavirus. Small businesses in the time of COVID-19 are faced with brutal choices and will need to employ creative solutions as the pandemic changes the landscape of our lives.
If you have a service that meets the needs of your community during the pandemic, getting information out to potential customers is a necessity. People right now want to help small businesses thrive, and they are looking for ways to spend their money conscientiously. What are some ways to navigate the balance of marketing a product during difficult times?
Before we look at marketing, it’s important to look at your business: Right now, more than ever, it’s crucial to understand what is an essential business and what is not. I just watched in real-time the complete viral annihilation of an owner’s decision to keep her consignment mall open because she deemed her store and all the vendors paying rent in her store (and all their employees) as “essential business.” (She, herself, was self-isolating in a different state. And three hours after her initial post, she changed her mind.) People are dying — if anyone susses out that you are here for profit/being greedy/to exploit a tragedy — I guarantee the karma (Facebook’s comment section) is swift.
Merchant Maverick’s COVID-19 hub has many resources to weather the storm, but if in doubt — sit it out.
And if your business has a role here as we move forward, then keep on reading, and we’ll explore the best practices together.
The Best Marketing Channels For Small Businesses
Parts of the nation are on full shelter-in-place orders, and others may soon follow. That means that millions of workers and their children are home, in their family rooms, most definitely on their computers or phones, with near-constant access to the internet. We are lucky to live in a digital world that can adapt to the needs of consumers during this pandemic — and the digital world is where you are going to access your potential customers.
Building a newsletter is an essential part of doing business. Why? Because when you have access to someone’s email, you have direct access to that person. They may not open your newsletter, but when they check their email, they will see your name and your subject hook: It’s the best resource you have. Building a newsletter should be seen as an essential part of doing business.
(How can you tell a writer has been a little too self-isolated? I just deleted an attempt to write this section to the tune of Over the Rainbow. I wish I were kidding.) Social media is where you will find your people. Maybe you already have a thriving community on your social media, or perhaps you are building one. Either way, it’s important to think of ways to use various platforms: Instagram, Facebook, YouTube, Twitter, TikTok, Snapchat…maybe in that order, depending on your marketing audience.
Direct communication is the best! If you have access to phone numbers, maybe send a quick text update. A skincare business in Portland I have been to once texted to let me know its physical store was closed but is still selling products and gift certificates online. If you have a website, consider blogging about your own experiences. Now is the time, more than ever, to tell your narrative and build a community around your business’s story. Who are you, and how is this pandemic affecting you and yours?
The Ground Rules For Online Marketing
The entire world is really hoping that we can all flatten the curve of this virus and return to normalcy. However, until then, every person and every business needs to make socially responsible choices. That means your business needs to comply with social distancing and follow your governor’s mandates. As with any marketing campaign, be sincere and run your words by many different sets of eyes to ensure your tone is professional and sensitive to the mood of the nation.
If you are asking people to opt-in to your newsletter for freebies/deals, make sure you follow local privacy laws. Also, a good tip is to require only two fields (say: name and email) — any more will cause hesitation, and you might lose the lead.
Build An Email List
One small business owner mentioned that he sent out a newsletter, not to pitch anything, but simply to ask his subscribers how they were doing: How are you? Are you okay? Do you need anything? Small businesses are the bedrock of the community, so first, reach out to your community and see how people are feeling. With self-isolation in full swing across the nation, many people need your words of comfort and offers of help.
You can also use this time to build your list by offering discounts or freebies to people who sign up for your newsletter. (For a gym or yoga studio: If they sign up for your newsletter, maybe they can receive free daily quarantine exercises?)
Create A Social Media Following
There are opportunities to pay for ad campaigns within social media platforms, but it’s important to use your platforms to communicate with your customers and community directly in addition to running ads. People want to help small businesses in their community, but they need to know who is open and how social distancing needs are being met. Use your social media channels to inform and engage.
Keep Your Customers Updated On Changes
I have a local store I love, and I went to all of its social media pages for a COVID-19 update and didn’t find anything. Tell your story and make it easy for people to support you and to know how — put that information far and wide.
If you can still provide curbside or delivery during the pandemic, your business has pivoted and adapted with the changes, or if you are changing your hours or working with a reduced staff, let people know. Use all necessary means to communicate with your customers and encourage people in your community to share your message far and wide.
Use Hashtags & Branding
A hashtag is a way to group your message in with broader messages to attract new followers. As you can imagine, right now, pandemic hashtags are trending along with #stayhome, #stayhomesavelives, and #socialdistancing. Creative hashtags such as #savesmallbusinesses can gain momentum across platforms and will help categorize your information. You can create a hashtag specifically for your business to boost name recognition and your business’s story. Our local used bookstore (and Portland icon), Powell’s, had to shut its doors and lay off the majority of its staff, prompting a #savepowells hashtag to surge and ignite a successful online buying campaign to help keep it afloat.
If you are using your social media consistently to communicate, think about your company’s branding — can someone look at a post and identify your company? What is the overall tone of your company’s message? Keep your social media messages consistent and on-brand. Branding also means you understand your audience and their needs: If you are in a community that is struggling and feeling scared right now, you might want to avoid a tone that feels trite or dismissive of the current news.
5 Marketing Tactics You Can Use To Keep In Touch, Inspire, Motivate & Otherwise Encourage Customers
We are not living in the same world that we were a few months ago. Consumers and attitudes have shifted, thriving businesses have shuttered for the time being, and people have major anxieties. They are scared about the virus, worried about the health of loved ones, scared about their jobs, scared about the overall health of our economy, maybe food insecure or feeling alone, and/or possibly balancing remote work/home school for the first time. Right. So when consumers are dealing with a national emergency, priorities shift. Consider that as you move forward with a marketing campaign.
Marketing is two-fold. Yes, you want to sell the product/service you can offer, but you also want to market your story/your company’s ethos. Here are some marketing tactics that might work well as you look forward.
Promote A Good Cause
Larger corporations have made donations of coffee and sandwiches to health workers, and many smaller businesses are reaching out with offers to donate a percentage of proceeds to nonprofits helping assist communities most impacted by COVID-19. Can you provide free food for kids or the elderly? People want to spend money and know it’s helping small businesses and the people impacted by this emergency: What does your community need, and how can you help?
Run A Contest Or Challenge
Can you drum up some business by offering a contest or challenge to your customers? A game store in Kansas is offering up a $50 gift card to the store to anyone who shows their “19 painted miniatures in 19 days challenge.” A bakery in a suburb of Portland is offering “frost your own cookie kits,” selling them curbside and then highlighting the beautiful cookie art with a hashtag; daily winners via votes get a gift certificate to the store. Take an opportunity to engage your community with an activity or challenge (Bake with Me challenge or Tap with Me challenge; a toy shop near us that sells Legos is running a 30-Day Build-It challenge). All of these things build brand awareness and provide your potential customers with something to engage with.
Use Promo Codes For Online Orders
Are you moving your business online? Or have you already been equipped for online ordering but need to get the word out? Provide a financial incentive to order from you! I ordered some books from a bookstore owner directly over the phone, and she shipped the books free (and they arrived the next day!), and online delivery services are running promotions for free delivery. Entice new customers with a first-time buyer code or offer deep discounts for large orders.
Sponsor A Giveaway
At this point, I’m sure you’ve seen it, too: the toilet paper giveaways. Order a pizza? Get some TP. Drive-thru to our coffee shop? TP while it lasts! If you don’t have 2020’s luxury item on hand to pass out with your product, that’s okay; there are many other things besides toilet paper you can give. This might be an opportunity to team up with a collaborator (another small business in your community) and give away gift certificates to a different business in the neighborhood. If you are a clothing boutique, can you have some fun with quarantine-outfits and sponsor a giveaway of clothes that are perfect to wear at home? This is about what you can offer and how you can help while building your brand and responding to the virus ethically.
Feature Your Customer/Community Stories
This is what speaks straight to my heart: stories. We are all a giant community of humans, and it is local families and local businesses that keep things afloat. Tell your own story but also reach out and see if you can feature other stories, too. Build a community from this isolation, and encourage people to reach out and connect with you and others. Also, feature people who may be asked to work as essential employees — put a name and story to the faces of the people in your business: Let the community know who they are supporting. They are not supporting a business; they are supporting the people behind the business.
The Bottom Line For Online Marketing During A Pandemic
How you face this pandemic can say a lot about your business and your brand. Don’t take the messages you send lightly, and run them through a filter of sensitivity and practicality. But if you have a service you can offer safely to others, yes, communicate that in any way you can to get the word out about how you can help people in your community. Email your list, send a newsletterÂ or a text; be sure to communicate honestly and often, and let people know how they can help you. Have you seen any brilliant or cringe-worthy marketing campaigns related to the pandemic? Share with us in the comments! And stay safe out there.
The post 5 Clever Marketing Tactics For Small Businesses During The Coronavirus Pandemic appeared first on Merchant Maverick.
This post originally appeared at Tailor Brands Review: Pros, Cons & Alternatives via ShivarWeb
Tailor Brands is a suite of branding & design tools powered by machine learning for non-technical users.
They allow businesses, organizations, and individuals to create an entire “brand identity” with logos, typography, color patterns, and other elements across the web & print.
See Tailor Brands’ Current Plans & Pricing
In other words, Tailor Brands a toolset that makes your project “look good” everywhere from your Facebook page to business cards to website.
There are plenty of Tailor Brands reviews on the Internet – some good, some bad. This Tailor Brands review will look at how the software works, the upsides, downsides, and ideal use cases for the product based on my experience as a digital marketing consultant.
What is Tailor Brands?
Tailor Brands is a suite of tools to help you create & manage your business designs everywhere that your brand appears. They were founded in 2014.
They use software & artificial intelligence to not only create your business’ look and feel but also maintain that look and feel everywhere that you want.
Their main tool is their logo maker. Rather than use templates or quiz questions like traditional automated logo makers, they have you answer whether you like or dislike styles. Their AI does a version of NetFlix’s recommendation algorithm but with design styles.
Once you approve a certain design style, their software creates an entire brand identity and uses rules to apply it to applications ranging from a stand-alone logo to Instagram profiles to website headers to presentation headers.
Background on Tailor Brands
There has always been a plethora of DIY design tools on the Internet. I use Stencil for my Featured Images. I’ve used Canva for social images. I’ve used native tools with Buffer & social networks to customize my logos & images. I had a guy from Fiverr help edit my website CSS to match with my logo colors. I had a professional graphic designer on UpWork create a custom blog image for me. I’ve run contests for clients on 99designs.
In other words, the world of DIY design has been here for a while. You don’t need a Mad Men-esque setup of paying $$$ for graphic designers to create a pitch deck.
But the world of DIY design is also a bit of a frustratingly hot mess. It’s a world that’s good enough to be dangerous.
In other words, it’s accessible enough to let non-designers think they are designing a nice brand…when it’s a jumble of mismatched fonts, misaligned layouts, and conflicting colors.
It’s the difference between “Yeah, that’s nice” and “Damn, that is right on! How’d you do that?”.
Tailor Brands is an interesting product that is trying to use software, AI, and automation to take those details away from humans and just automatically apply it wherever you need it – to create a “brand identity with a stylebook” as it were.
How Tailor Brands Works
Tailor Brands works by moving you through its logo maker, which doubles as a brand identity developer. You are given options…and you can run the software as many times as you want.
Once you’ve approved your design, you’re taken to a studio with mockups & style guidelines. You then have a choice of 3 pricing plans*.
First, the $3.99/mo plan provides access to your logo, social media tools, and graphic design library. You can also connect your domain to a basic landing page builder.
Second, the $11.98/mo plans provide access to EPS vectors (for outdoor and print use) in addition to a full website builder and advanced design tools.
Third, the $25.98/mo plan provides access to social media schedulers and analytics so that you can bring your social media management under a single platform. You can also accept payments and run an online store.
*Note – you can cancel and keep all your design assets. So technically, if you just need a logo – you can get that for less than $50 (the $3.99 is billed for 12 months).
The plans all provide ongoing access to tools to manage your brand designs. You retain full ownership of all brand designs & assets even after you cancel.
Pros of Using Tailor Brands
For a relatively new product, Tailor Brands’ actual product is well-executed. There are few bugs or real complaints that I found with the actual core product.
Their real advantage (and disadvantage) is their unique positioning as a tool suite. Here are some of the main pros of using Tailor Brands not only for logos but as a design management tool suite.
Product Focus on Branding over Assets
As mentioned in the introduction, one big issue with the DIY design tool world is the focus on design assets. It’s easy to create a Facebook post on Canva or bulk generate Google Ads with Display Ad Planner. Those tools are easy and usually free. But they are inherently separate. *You* have to manage your images across different tools.
A huge pro for Tailor Brands is that they have an entire tool suite that focuses on unifying your entire brand everywhere. They focus on keeping that brand identity right on, rather than focusing on giving you the best kerning tool or biggest font library or the most intuitive CSS editor.
If you look at some of their design tools one on one with direct tool competitors, they may or may not be “the best”. But Tailor Brands can keep everything looking good everywhere, which is their main pitch to customers who would benefit from their product.
In my experience especially with small and local businesses, it’s a consistent brand identity (paired with a good product / service) that allows them to compete with established big name brands.
If you can just remove the infamous pixelated cover photo, you’ll probably beat your competition. And if you can ensure that your new assistant can quickly handle good looking Instagram posts…all the better.
That outcome is Tailor Brands’ main focus, and it comes off well in the product.
Pricing Structure & Cross-Sells
Every software as a service (SaaS) struggles with business models and pricing. You want your service to be accessible, but also profitable.
This balance is especially hard to strike with design assets where it’s usually a one-and-done proposition.
Tailor Brands runs on a subscription business model. But the subscriptions focus on the design tools rather than the design assets.
This structure creates a couple of of useful incentives.
First, it means that there’s no question of ownership of design assets. You own your brand, period.
In fact, it means that you can get a really cheap logo if that’s all you want. You can pay for one month, download your assets, and cancel. You’ve got a high-quality logo in a range of file types for less than $50.
Second, it means that while Tailor Brands has to keep optimizing their logo maker to bring in more customers, they also have to keep developing better design tools to keep customers around. There’s no disincentive to extort customers over their design assets or to drag their feet over product development.
Third, the subscription encourages use from customers rather than a one and done download. The real productivity boost for businesses is having a go-to design tool with everything in one place where you (or a new team member) can quickly create new designs & assets on an ongoing basis. And usually, the more you use a tool, the better you can get.*
*also you’ve got software that will adapt to frequent social media image requirements.
Ideally, there’s a virtuous cycle for everyone involved. Tailor Brands is one of the few companies where I think the cross-sells and upsells are not annoying, and generally useful.**
**also, small quibble, but do note that the prices are billed annually – so you are purchasing a full 12 months of access, even if you only pay monthly.
Turnaround Speed & Feature Versatility
Since Tailor Brands is fully automated, there are no constraints on time, speed, revisions, requests, or redos.
If you want to try graphic design a 2 AM Eastern, you can. If you want to completely redo your design, you can. If you need a mockup right now, you can get it. There’s no delay in turnaround or schedule to meet.
There’s no back and forth or waiting for your designer or virtual assistant. There’s just the software that is working 24/7/365. That’s a huge advantage for Tailor Brands. It works on your timeline.
And if you are trying to actually run a business, working on design any time means that it will get done. If you are running your business full-time, you likely don’t have time during business hours. And if you are working on a side project…you have to work on it outside business hours.
Additionally, since Tailor Brands has a whole suite of design tools, there’s no downloading or cropping or exporting or importing. Everything is just there to use.
Convenience generally beats everything. And when it comes to branding, Tailor Brands makes brand design convenient above all else.
Backend Quality & Usability
Even though Tailor Brands focuses on the branding aspect of design across their suite of tools, the tools themselves are high-quality and rock-solid.
They’ve built some tools in-house, but others they’ve high-quality 3rd party tools and customized them. For example, their website builder is built on top of the Duda website builder, which is one of the best website builders that I’ve used.
Same with their social media tools. It looks like they’ve white-labeled a 3rd party tool. But whatever it is, it’s legit and high-quality. Same with the design editor and others.
Each tool is solid & highly-usable on its own. But when they are all bundled within Tailor Brands’ suite, it makes each tool even more useful than it would be on its own.
Cons / Disadvantages of Using Tailor Brands
Every product has disadvantages, but especially a relatively new product like Tailor Brands.
Here are a few tradeoffs & complaints that I found with Tailor Brands. Some are simply the flip side of an advantage, but some are inherent to their approach.
Branding Process & Revisions
Tailor Brands’ fully automated, AI-powered design process leaves humans out of the process deliberately. That choice cuts costs, increases efficiency, increases choice, and makes the platform what it is.
But the tradeoff with this choice is that…it leaves out humans.
And humans are still critical to produce truly unique or truly outstanding brands. Brands are built on stories, and stories are what makes us human.
Humans can also ask pertinent questions, push-back on scope, implement creative deadlines, and invent completely new concepts.
Tailor Brands’s software can create a brand design and a brand style guide, but it cannot assign meaning or purpose of symbolism or even provide a reason why a certain design works over another – it only knows what “works” based on other user data.
The story / meaning part of branding is either your job or a job for another human. If you assign it to another human, that’s going to cost time & money.
And if you take on the job yourself, it’s something to be aware of and learn about.
Either way, it’s something to keep in mind when using Tailor Brands. There’s no process of “brand discovery” or mapping your customer’s psychographic persona. There are no revisions based on client feedback.
All that is for better and for worse. Before online design tools, agencies gave away the process and sold the assets. Now, you can get the assets affordably, but you still have to understand a bit about branding.
And that leads to the next tradeoff.
Customer Education & Brand Identity
Even though Tailor Brands does a lot of the branding & design work for the customer, they still leave a lot of creative work up to the customer.
The tradeoff of any service that claims to do “everything” for you is that the customer’s expectations are not set correctly. When it turns out that there is *some* work to be done, it’s easy to bail instead of figuring the work out.
A Tailor Brands customer still needs to be prepared to think through where, when, how they’ll need to use designs. The logo maker sequence is great, but after creating the logo, there’s very little guidance for a new customer.
There’s a ton of options with no real onboarding guidance or customer examples. Their welcome email series is limited to deals & coupons rather than “here are common next steps” or “here are some common use cases”.
I can imagine that customers who don’t have a strong sense of direction would churn quickly after getting a logo idea.
If you do end up using Tailor Brands, do note that you should have an idea of what *you* need to get out of it, rather than just using it for using a new tool’s sake.
Platform Product Lock-in
Tailor Brands is a hosted platform that focuses on convenience. And there’s usually a direct tradeoff between convenience and control on the Web.
The more convenient a product is…the less control you have. And the more control you have…the less convenient the product is. Think about RSS vs. Twitter. Think about hosted website builders vs. self-hosted CMS’. Think about an Amazon Seller listing vs. your own ecommerce store.
Tailor Brands makes everything downloadable. And they ensure that you truly own all your intellectual property.
However, like a hosted website builder, your work is inherently tied to their platform in many ways. The longer you commit to their platform, the harder it becomes to leave.
That’s not a good thing or a bad thing. It’s just a disadvantage that’s the flip side of their big advantage.
But it’s an important tradeoff to understand. If you use the Tailor Brands’ platform over your own copy of Adobe Illustrator, email or Paint, do ensure that you are downloading and backing up *all* of your brand assets on your own computer for the sake of preserving your own intellectual property.
Company Structure, Age & Competition
Tailor Brands has been around since 2014. They are still considered an “early-stage venture-funded” startup. In other words, they are privately held and using investor money to focus on the product rather than profit or market share.
Like the platform lock-in tradeoff, this disadvantage is more of a consideration. Right now they are still at a stage where pricing & product can change rapidly. They also probably have a small team with limited resources. They also will have copycat competition from publicly held competitors like Wix, Fiverr, Squarespace, Vistaprint, and others.
The upside to being a customer at a young venture-funded company is that you can count on more resources going into a better product. The downside is that there’s still a risk that they could get bought or “pivot” in the future.
Tailor Brand Alternatives & Use Cases
A product / service is only as good as its customer fit. Tailor Brands is not for everyone. But for some, it would be amazing.
Here’s 3 use cases where I think they’d be a really good it.
New Business or Organization w/ No Brand Assets
If you have a new business or organization with no brand assets and no large budget for a human-led design process, Tailor Brands would be a perfect fit.
Now, I would think through which features & tools that you’ll need from them. If you need a more robust website presence and/or email with lots of features, you might want to look at a dedicated website builder, ecommerce platform, or even shared hosting. You could use Tailor Brands strictly for design tools and social media. Either way, a new small business is their bread & butter. You can get try out their logo maker for free here.
Personal but Online Project w/ No Brand Assets
If you have a small personal project that you want to look just right – think resume site, hobby site, non-profit idea, family project, etc – Tailor Brands would be a solid fit. You can get try out their logo maker for free here.
Existing Business or Organization w/ Redesign
If you have an existing business or organization and you want to refresh your look without committing to a design firm or outsourcing to several providers, Tailor Brands would be a good fit. You can use what tools you need. You can also download & use the EPS file to get any signage or custom assets made offline.
Now, Tailor Brands is not for everyone. If you feel comfortable coordinating designs and brand assets across different platforms or if you have the budget to pay a human for graphic design, then something else might be a better fit.
Here are a few direct competitors to Tailor Brands and how they compare.
Tailor Brands vs. 99designs
99designs is a contest-led marketplace for graphic design. You set a budget and run a “contest” among human designers based on your design briefing. I wrote a 99designs review here. But in short, 99designs is sort of the halfway human point between Tailor Brands and an agency. 99designs is much more expensive than Tailor Brands, but you do get human ideas based on a design brief. 99designs also has a huge range of design contest options…but not the design management tools of Tailor Brands. Technically, you could (and should) check out both. See Tailor Brands here and 99designs here.
Tailor Brands vs. Fiverr
Fiverr is a huge marketplace for humans working on “gigs”. You think of a task that you need to be done, find a person to hire, and quickly get it done for you within Fiverr’s platform. Fiverr is also a halfway human point between Tailor Brands and an agency. The price ranges depending on skills and reputation. While you can great design assets from Fiverr, you are also in charge of managing all your design assets. You also have to expect to pay for several logos / designs before coming away with a good one. Tailor Brands would be a simpler, more affordable, and versatile fit.
Tailor Brands vs. Wix Logo Maker
Wix is the big brand name in the website builder world. I wrote a Wix review here. Technically Wix competes directly with Tailor Brands, even if they have a different focus. Tailor Brands focuses on how your brand designs are presented *everywhere*. Wix has similar tools, but really focuses their tool on website applications. In other words, Tailor Brands is a design tool with a website builder and Wix is a website builder with a design tool. Check out Tailor Brands here and check out Wix’s logo maker here.
Tailor Brands vs. DIY Tools
Between Canva, Stencil, and every other random logo generator on the Internet, Tailor Brands has plenty of competition for DIYers. If you have the time and wherewithal, you could get everything that Tailor Brands offers for free. The issue would be that all your designs would be dispersed among a bunch of tools…and you would be relying on your own design taste rather than a professionally built tool. In the end, I think that Tailor Brands is worth the money for the convenience and the designs. But for a quick sketch up of something you have in your head, Stencil is the simplest.
Next Steps & Conclusion
Tailor Brands is a unique and useful addition to the design world. In fact, for many businesses, it could do a full end around the traditional “upload your logo to a website builder” model.
By bundling design management tools, including a social media editor and quality website builder with an automated logo & brand designer, Tailor Brands has figured out something new & different.
If you are a non-designer trying to build a consistent brand identity across the Web & offline, Tailor Brands is worth a try.
See Tailor Brand’s Current Plans & Pricing
You might also be interested in my review of 99designs, my post on layouts, and my post on color palettes, and my post on hiring a web designer.
Good luck with your project!
Tailor Brands Review: Pros, Cons & Alternatives
Tailor Brands is a suite of branding & design tools powered by machine learning for non-technical users. They allow businesses, organizations, and indi
The Tuesday after Thanksgiving in the United States is officially known as Giving Tuesday, a kick-off to a celebration of charitable giving throughout the world. What started in 2012 as a small act of community activism to rebut the holiday season’s abundant consumerism has turned into a global movement of generosity for individuals, small businesses, and corporations. Giving back to your community is one of the most meaningful acts you can do as a small business. If you are looking for a way to capitalize on Giving Tuesdays’ influence and reach, keep on reading to find out how.
What Is Giving Tuesday?
Giving Tuesday is a global social media campaign started by the 92nd Street Y and the United Nations Foundation. The campaign’s goal is to combat the commercialization of the holidays and raise charitable giving to organizations across the world. According to the Giving Tuesday organizers:
When GivingTuesdayÂ launched in the US in 2012, we believed that technology and social media could be used to make generosity go viral; that people fundamentally want to give and to talk about giving; and that the social sector had the capacity to show more innovative leadership, creativity, and collaboration. People and organizations around the world proved us right. In just seven years, GivingTuesday has radically changed how we think about generosity and showed just how much power communities everywhere have to create change.Â
In 2018, Giving Tuesday donations in the United States exceeded $400,000,000 and received over 14.5 billion social media impressions. Each year, the media attention and hashtag activism create a surge of momentum, and the stats show that consumers (Millennials, especially) make purchasing decisions based on a company’s charitable giving.
The concept behind Giving Tuesday is to create a day where our energy and attention focus on how we can help our communities; how you embrace this pseudo-holiday is entirely up to you and your staff. We live in an age where social responsibility matters for your business branding, and it also helps target potential customers who share in your cause. The movement’s website does have a way to search for nonprofits seeking assistance in your area if you’re looking for a place to start. And if you’re wanting to check a charity rating, you can do that through the Better Business Bureau’s Wise Giving Alliance.
When Is Giving Tuesday?
Giving Tuesday is set to take place every Tuesday after the US Thanksgiving holiday. This year, the day falls on December 3, 2019. The celebration of giving lasts twenty-four hours.
5 Fun & Effective Giving Tuesday Ideas For Small Businesses
If you don’t know the best way to incorporate Giving Tuesday into your small business, Merchant Maverick has some tips for you. Here are five fun ideas:
Choose A Nonprofit Through A Contest
Every year, my credit union holds a contest to donate $10,000 to a local nonprofit in the area. Five charitable organizations are plucked from a bevy of nominations, and customers and people on social media vote for the winner. In this particular version of the event, the nonprofit that wins the contest receives the big prize, but all nonprofits receive a small donation regardless. You want your customers to care about the organization you’re backing, so offering the community a chance to nominate their favorite nonprofits is a fantastic and fun way to encourage participation and buy-in. Some companies share their winners on Giving Tuesday, but if that’s too late a start for marketing, you could start the contest on Giving Tuesday and extend it through the holidays.
Have Your Entire Company Donate Time/Resources
Giving Tuesday could be an afterthought to an already hectic holiday season. It shouldn’t be. There are numerous ways your employees can donate time and resources in your small business’s name. Several larger corporations give their employees time off on Giving Tuesday to work/donate their time to a nonprofit of their choice, and other businesses go together as a group to volunteer locally. It’s up to you on how you share the news of your giving, but it’s more meaningful to focus on the impact you and your business can make to the community. Find places that need you, find a nonprofit that merges well with your business style, and ask how you can help.
Give A Portion Of Your Sales To A Nonprofit
This is an oft-used, tried and true method, but it still has an incredible impact for you and for the nonprofit you raise money for: give money from sales or give goods/services. You can hold hourly contests with giveaways for reaching certain sales goals or keep an updated real-time calculator for social media showing what you’ve earned. When consumers know a percentage of money is going to an organization they care about, they will be more likely to spend money with you. Is there a special product you could release where 100% of profits go to a charity of your choice?Â (Think: LUSH Beauty’s Charity Pots or Portland’s Ex Novo Brewery, where 100% of beer sales target specific nonprofits in the area. Portlanders are always down for drinking with a cause.) There are other ways to use this model that do not cut into sales. There is the TOMS Shoes model (you buy shoes, they give a pair of shoes to someone in need), or the Barnes and Noble Buy a Book campaign for local school children. Is there a product people can buy from you for others? Pick a method that works for your company, whether you are brick and mortar or online, and advertise those Giving Tuesday plans.
Get Your Clients/Customers/Employees To Participate In The #UNselfie Campaign
One of the reasons why Giving Tuesday has momentum and staying power is because of its tireless connection to social media campaigns. The hashtag game is strong with #GivingTuesday. One of those important hashtags is the #UNselfie. An unselfie is a picture posted on social media that lists the reasons why someone might give or where someone is giving their time and resources. The pictures usually involve someone holding up a piece of paper over their face listing the best reasons to give and what specifically is important to them. You can ask customers and employees to take an #UNselfie and post it with your company’s hashtag to draw awareness to the day and what your small business is doing. (Maybe hold a random drawing for one customer who posts! Be sure to like and respond to posts, too. Engage with your customers/clients.)
Focus On Storytelling And Go Big On Social Media
I’m a loud and intense proponent of using storytelling to grow your business and help the world. As humans, we are drawn to stories. We want to know who people are, what makes them tick, how we can help. There are many ways to use Giving Tuesday as an opportunity to tell your story or the story of someone who needs help from the community. If you are collecting money for a charitable organization, think about setting certain price-anchors for donations and telling your customers what impact that donation has. (For example, a $10 donation plants a tree; a $100 donation sends a kid in your community to camp.) No matter the organization you choose, it’s up to you to tell that story and get the word out. The more relational your Giving Tuesday campaign is, the more success you’ll have.
3 Ways Your Small Business Can Benefit From Participating In Giving Tuesday
It’s important to note that Giving Tuesday is about giving. Can you benefit from participating? Of course! But the who and the why of this day are far more important than the how. Shoppers are savvier than ever before and they know what they like in a business, and they can also smell inauthenticity from miles away. If your Giving Tuesday campaign is too focused on you and not focused enough on who you’re helping…you’re doing it wrong and it will feel forced and backfire. Getting excited about Giving Tuesday starts at the top and works down, so you set the barometer as a business owner. Still: that doesn’t mean the attention to Giving Tuesday isn’t worth it for your business. Here are 3 ways you benefit from participating:
Improve Employee/Customer Morale:Â Today I cried watching a viral video of a little boy finding an empty candy bowl on Halloween and filling it with his own candy before leaving the house. We are moved by selfless generosity and love for others, and when feel-good stories are short supply, boosting morale is no small task. Work is work and business is business. For business owners and employees alike, taking the time out to do something important and generous will boost mood and overall company self-esteem.
Receive Tax Deductions: Tax deductions are helpful and we cannot ignore that they are a benefit to donations. Check out your state and local requirements for tax deductions on charitable giving and follow all the rules.
Establish Yourself In The Community:Â Your small business is part of a larger community and serving that larger community is a huge benefit to you, your employees, and your customers. Whether it’s getting your name out as a partner or ally, communicating your business values, or setting up a system of giving that extends all year long, Giving Tuesday is the perfect place to start your campaign.
Pay It Forward With Giving Tuesday Campaigns
Doing good for the world and your community is good for business. Shoppers care about their communities, they also care about knowing where their money is going, and they want to shop for a cause. While the Giving Tuesday media ramps up and before the hashtags start to fly, decide on the most practical way to contribute this year and build off that foundation. What has your small business done for Giving Tuesday in the past? Do you have any ideas and success stories to share? Tell us in the comments below.
The post Giving Tuesday for Small Businesses: Why Your Company Should Get Involved, Plus 5 Fun And Clever Ways You Can Participate appeared first on Merchant Maverick.
So, you’ve started a nonprofit. You’re passionate about your cause and have put together an inspiring team, united by your shared mission to make a positive difference in the world. But you need some money to help finance your venture. Unfortunately, in our profit-motivated society, it can be extremely difficult to find a lender or other party who has financial incentive to extend you some capital. Whether you need an infusion of capital to maintain your existing nonprofit, or you want to secure financing to get your fledgling nonprofit off the ground, you may have to turn over a lot of stones before you find an interested lender. However, obtaining financing as a nonprofit is not entirely impossible, as long as you know where to look.
Is a business loan a viable option for a nonprofit organization? Where else can nonprofit businesses get financing? Read on to learn the answers to these questions.
Why Nonprofits Have Trouble Getting Business Loans
Nonprofit organizations are, of course, not about turning a profit. Any money they make—if they bring in any money at all—is meant to be reinvested in the organization. Banks, which are all about profits, have little to no interest in helping nonprofit organizations. Lenders consider nonprofit organizations to be “high-risk borrowers,” because they do not trust that you will make enough money to repay a loan. If they do not receive any additional financial incentive to do so—for example, a government subsidy or a “corporate giving” PR campaign—banks typically will not lend to a nonprofit that is not bringing in significant revenues. Such is capitalism.
7 Ways To Get Financing For Your Organization
Fundraising, donations, and member fees are typically the main sources of funds that drive a nonprofit organization. If you need additional money on top of what your organization is able to bring in through these channels, you’ll face a pretty steep climb. However, while it’s not easy, there are ways to finance your nonprofit, even if you can’t get a loan. Also, a loan is not necessarily out of the question, particularly for a more established nonprofit. The appropriate type of funding for your organization will depend on various factors, which I’ll describe in more detail in the sections below.
1) Community Development Financial Institutions (CDFIs)
Short for “Community Development Financial Institution,” a CDFI is a financial institution with a mission to facilitate community growth by providing financial assistance to businesses and consumers in low-income or disadvantaged areas. CDFIs are typically not-for-profit or nonprofit organizations, but may take the form of traditional banks/credit unions or venture capitalists. Usually, they do not operate on a national scale, so you will need to seek out CDFI opportunities in your local area.
CDFIs may be microlenders offering loans of $50K or less, while some CDFIs also issue larger loans to more established businesses. City First Bank in Washington D.C. is an example of a CDFI that offers loans to nonprofits.
While CDFIs can be a viable source of capital to nonprofit organizations, particularly to those that operate in disadvantaged regions, there are some downsides. CDFIs usually charge higher rates than banks do (though lower than you’d get with short-term or payday loans) and typically require you to submit a lot of documentation. It can also take a long time for the funds to come through.
Learn more about CDFIs by reading our comprehensive CDFI loans article, and search for CDFIs in your region on the CDFI Fund website.
2) Banks & Credit Unions
Though it’s much harder to qualify a loan from a traditional bank, there are some banks that offer loans to nonprofits. Big corporations — banks included — often like to flex their philanthropic muscles via nonprofit grants or loans programs. However, banks may charge higher interest rates on loans to nonprofits due to the higher risk involved, and you will likely have to have an established nonprofit with documentation to show your revenue, expenses, fundraising plans, and other financial information.
Credit unions, being nonprofit themselves, are more likely than traditional banks to offer nonprofit loan or grant programs (or serve as CDFIs). As nonprofits, credit unions do not have to pay taxes and can offer very competitive interest rates. A credit union may also be more likely than a bank to extend a loan to a newer or smaller nonprofit. Credit union loans are typically offered in smaller amounts than bank loans and you may have to have a checking or savings account with that credit union in order to qualify.
It’s important to only apply for funding to banks and credit unions that specifically advertise that they work with nonprofits/have a lending program for nonprofits. These institutions will better understand your needs as a nonprofit, and will be more likely to accept your application.
Learn more about credit union loans for businesses (including nonprofit businesses) and how they differ from bank loans.
3) Crowdfunding Platforms
For startup nonprofit organizations that are less likely to qualify for bank loans, crowdfunding can be a good option. There are various types of crowdfunding, but charitable/donation lending is the one most suited to nonprofit businesses. Depending on the crowdfunding platform you use, you may be able to obtain free capital for your nonprofit, in the form of online donations you do not have to repay. Or, you may qualify for a no-interest crowdfunded loan, and you’ll only have to repay the principal on the loan.
It is extremely important to familiarize yourself with the laws regulating nonprofit fundraising in the state or states in which you will be operating. You may have to register your charitable nonprofit with the state before you begin soliciting donations.
If you’re ready to explore fundraising online, start by looking at these 6 platforms that do crowdfunding for nonprofits.
4) Nonprofit Grants
Business grants are another form of funding that nonprofits may be eligible for. Grant money for nonprofits can come from government sources, business associations, corporations, or other nonprofit organizations. Typically, grant money is intended for very specific purposes, and government grants, in particular, require a rigorous vetting and application process. Additionally, they will want to see what you’ve achieved with your nonprofit thus far. Most non-government grants are for smaller amounts (less than $50K) and may resemble a contest or competition in which you’re competing with other organizations. Make sure you check that the grant you’re interested in is open to nonprofit businesses; some grants only apply to for-profit businesses.
When searching for grants, you can check grants.gov, the centralized source for all U.S. government grants. You should also do a more targeted search for grants in your particular region, as many grants only apply to applicants living in a certain state, city, or municipality. For example, the state of Maryland has a lot of business financing programs including grants, many of which apply only to applicants in certain counties. If you operate in an economically distressed region or serve a disadvantaged demographic, you might also be eligible for special grant opportunities. For example, there are business grants for women, business grants for minorities, and business grants for veterans.
You can learn more about business grants for nonprofit organizations by reading our nonprofit grants article.
5) Nonprofit Loan Funds
Nonprofit loan funds are another viable source of capital for nonprofit organizations to investigate when looking for funding opportunities. These institutions, often nonprofits themselves, offer loans to nonprofits in need of funding, and especially to nonprofits in underserved communities. Typically, nonprofit loan funds charge less interest than do traditional lending institutions; in some scenarios, the loans may be interest-free.
Some nonprofit loan funds include:
Nonprofit Finance Fund
Growth Partners Arizona (formerly the Nonprofit Loan Fund of Tucson and Southern Arizona)
The Loan Fund (New Mexico)
Open Road Ventures
Propel Nonprofits (created from the 2017 merger of Nonprofits Assistance Fund and MAP for Nonprofits)
Nonprofit loan funds differ from nonprofit grants in that you will have to repay whatever you borrow. Nonprofit loan funds may also be CDFIs. As with other loans, nonprofit loan funds typically require an operating history—meaning your nonprofit startup may not be eligible.
6) Online Loans
There are various types of online business loans that your nonprofit may be eligible for. Generally, online loans have higher rates and more relaxed requirements compared to loans from banks or credit unions. More established nonprofits may be eligible for a medium-term online loan with a decent interest rate, while newer organizations may have to settle for short-term, high-interest loans. Despite their higher price tags, one benefit of online loans is their speed and convenience; often, an online loan’s time-to-funding—the amount of time from when you apply to when you receive the funds in your account—is only a few days.
For nonprofit startups without any track record, a personal loan could be an appropriate online loan option. You can apply for this type of loan from a personal lender, and the only thing the lender will typically care about is your personal credit score. Personal loans are usually for $50K or less. As these loans come with high interest rates and a short repayment schedule, you might only turn to this type of loan as a last resort. Still, if you choose a reputable personal lender, you will get a better deal than you would from a payday loan or from a cash advance on your credit card.
Some, but not many, online lenders have special loan programs for nonprofits. Accion is an example of one online lender (also a CDFI) that lends to nonprofits.
Note that online loans may require you to sign a personal guarantee which states that you—not your organization—are personally responsible to repay the loan balance.
7) Corporate Giving Programs
Even if you cannot secure a sizable loan or grant, you can benefit from contributions from corporations and even smaller businesses in your community. Whether motivated by generosity or just good PR, it doesn’t really matter: businesses increasingly want to “give back” to their community, and that includes helping nonprofits. Companies in your city or county may have various programs or policies you can benefit from as a nonprofit:
Sponsorship of fundraising events (dinners, dances, 5Ks, etc.)
Paid-release days (days employees are paid to volunteer for a charity)
Taking advantage of corporate giving programs requires some creativity and hard work, as you will have to work together with local businesses to figure out how they can best serve you, typically in combination with your own fundraising efforts. You will also have to generate awareness in your organization about corporate giving programs in your region and frequently reach out to local businesses. The good thing is that businesses are generally happy to display their generosity to the community, as this benefits their organization as well.
How To Improve Your Chances Of Getting Approved
Once you decide to apply for financing, it’s time to find a potential lender and start putting together your application package. If you take the time to properly prepare for the application process, there is a much higher probability that a lender will decide to take a chance on your nonprofit. Here are a few important tips to keep in mind.
Make Sure You Meet The Borrower Requirements
Nonprofit loans are a very specific type of financing, and if you bark up the wrong tree, you’ll just be wasting everyone’s time. Make sure that your organization meets all the minimum borrower requirements for whichever loan you’re considering before you apply. Or if you’re applying for a personal loan, check your credit score to make sure you meet their minimum accepted score. A lender will not make a special exception for you, no matter how awesome your nonprofit sounds.
Choose The Right Type Of Financing
In addition to meeting the minimum requirements for a loan, you also need to choose a loan that will work best for your needs. For example, maybe a line of credit will better meet your organization’s needs than a term loan. Even if you are pre-approved for a loan offer, you must also consider whether you can reasonably afford the loan repayments and are comfortable with the repayment timeframe. If not, you should apply for a smaller loan or consider applying for grants, ramping up your fundraising efforts, etc.
Have A Strong Business Plan
Just like a for-profit business, a nonprofit business needs to have a solid business plan in place, especially when applying for financing. The lender will want to see a specific plan detailing both how your nonprofit organization meets a need in the community and how you plan to use proceeds from a loan, all supported by thoughtful research and strong financial documentation. They’ll also want to see that your organization can successfully raise funds.
Have Your Documents Ready
Whether you’re applying for a loan or a grant, you will be asked to submit certain documents. It is best to have all of these materials on-hand when you apply so you are ready to supply them when asked. Some items you might need include:
Driver’s license or other government issued ID
Your organization’s fundraising case statement
Proof of 501(c)(3) (nonprofit/tax-exempt) status
Recent tax returns
Recent bank statements
Other financial documents such as income reports and cash flow projections
Proof of collateral
Keeping strong records, particularly of your organization’s financial information, will make you better-prepared to supply documentation that supports your nonprofit’s need and eligibility for financing.
Need more loan application help? While we wrote the following articles mainly with for-profit businesses in mind, the same tips for business loan applications generally apply to nonprofit business loan applicants as well:
How To Get A Small Business Loan: The Step-By-Step Guide
20 Tips To Improve Your Business Loan Application
Although the nonprofit’s business model is in some ways very different from that of a for-profit business, nonprofits operate similarly to regular businesses in many respects. Working capital, operational expenses, and expansion of services are valid reasons to seek financing, regardless of an organization’s business model. While your financing options as a nonprofit are somewhat limited, you may actually have an advantage over for-profit businesses when applying with organizations such as CDFIs, microlenders, and nonprofit loan funds, and also when applying for government grants.
Has your nonprofit been successful in obtaining financing? Have a favorite nonprofit lender? Sound off in the comments!
The post Why Nonprofits Canât (Usually) Get Business Loans — And How To Get The Financing Your Organization Needs Anyway appeared first on Merchant Maverick.
If your business relies on paper-based invoicing, you donât need me to tell you about the inconvenience of printing, mailing, and waiting to get paid. Despite the hassle, many businesses still rely on printing and mailing invoices â youâre not alone. However, more and more shops are switching to online invoicing platforms to eliminate the expense of paper, printing, mailing, and administrative costs — and get paid faster!
If you’re ready to try an easier invoicing process, one simple and popular new solution is Square Invoices — because yes, in addition to the free mobile card reader and mobile POS, Square offers a fairly robust invoicing platform that syncs seamlessly with the rest of Square’s features.Â
We’ve already reviewed Square Invoices, so I recommend that you check out the review for a more detailed look at how Square stacks up against some other options.
In this post, we are going to dive into Square Invoices and show you how to use the platform! From setting up a one-time invoice to setting up recurring invoices and creating deposit requests and reminders, youâre going to find out everything you need to know about using Square to send and receive payments.
But first, I know the most important question will always be “how much does it cost?”
How Much Does Square Invoices Cost?
The good news is that Square Invoices is entirely free to use. You can send unlimited one-off invoices, recurring invoices, scheduled invoices, and any other type of invoice, and youâll only incur payment processing fees at the time your customer pays you.
When your customer opens your invoice and pays you online with their credit card, youâll pay 2.9% + $0.30Â for processing costs. If you use a saved Card on File from your Customer Directory to process an invoice payment, youâll pay 3.5% + $0.15.
Thatâs it. Square doesnât charge any monthly fees, service fees, or any other fees beyond the processing costs. A transparent pricing model and fully secure, PCI compliant payment processing are what makes Square a leading choice for businesses that need a simple, cost-effective solution. Â
So letâs find out how to use Square Invoices to save time and get paid faster!
How To Send A Square Invoice
To send an invoice with Square, youâll need to set up a Square account. The setup process doesnât take long, and Square only asks for necessary personal information â no credit checks required! Once youâve got an official Square account, you can access everything you need right at your dashboard. The same tools are at your disposal whether you access Invoices from your Square POS app or the Square Dashboard at your computer. Note that for this post, we are creating an invoice from our Square Dashboard â and here it is in the screenshot below.
As you can see, I donât have any outstanding invoices. If I did have outstanding invoices, the blue box labeled Invoices would display the dollar amount. From this tile, I can quickly send a new invoice by selectingÂ Send an Invoice.
1. Fill In Customer Information & Invoice Details
When you first open the form to build an invoice, itâs very straightforward to plug in the details. Add your customerâs name, email address, and a message. The default message for the invoice is, âWe appreciate your business,â but you can certainly start from scratch here and add a more dynamic message. The possibilities here are endless, from inviting them to consider a new service or promoting an upcoming event or discount. You know what they say, âAlways Be Closing.â
Keep in mind that Square Invoices also syncs with your customer directory, so if you’re invoicing a past client, you can pull their name and information from the directory. If this is the first time you’ve sent this customer an invoice, this process will create an entry in your database.
I want to mention the Invoice Method line briefly. This line refers to the delivery method. Square Invoices send the invoice via email as a default, but you can also select Share Invoice Manually in the drop-down and Square will generate a link. You can send the link to your customer via text message, social media account, or any other type of messaging platform.
2. Set Payment Terms For One-Time Invoice
Working our way down the Invoice Details, letâs look at the Frequency. In the drop-down, you can choose One-time or Recurring. In the next section, Iâm going to peel back the layers of recurring invoices. But first, letâs focus on a one-time invoice and the Send line in the image below.
This step is important for obvious reasons. When you think about customer behavior, remember that the fresher the value is in their mind, the more likely you are to get paid. Send the invoice as close to the deliverable as possible, and choose your due date carefully.
3. Set Up Recurring Invoice Schedule
As you can see in the image below, you have some flexibility when it comes to when and how you enable recurring invoices with Square. You can choose to send immediately, or choose a set time block such as in seven days or at the end of the month. You can also select a specific date.
Here, you can also select how often to repeat the recurring invoice. You can set the schedule for daily, weekly, monthly, or yearly invoice billing. Next, select when to stop your recurring invoices. Your options are never, after a specific number of invoices, or on a specific date. You can see in the example I set up below that Iâve ordered my recurring invoices for six months and requested payment due within seven days of receipt. Iâve also enabled Automatic Payments. If my customer approves automatic payments and saves their card, Iâve just made things even easier for myself (and them)! We will revisit the card-on-file situation and what that means for you in an upcoming section. Â
Recurring Invoices can help you get paid on time for a service- or product-based subscription, of course, but you can also utilize recurring invoices to allow your customers to pay in installments. Itâs all in how you set up expectations with your customer. Make sure to lay out what is expected as far as payment for the exchange of goods or services in the Line Item section. Â
Whether you send a recurring or one-time invoice, the next steps are the same, so keep reading to find out how to fill in all of the upcoming invoice options, starting with Line Items.
4. Adding Line Items To Your Invoice
When itâs time to add items to your invoice, youâll choose from the drop-down menu. If you donât have inventory saved, you can simply type in the product or service and the price. Iâve added in ad-hoc services and prices to my Line Items in the screenshot below.
Need to add a note next to the service? Select Customize on the line item, and you can add a simple note next to the specific product or service in your invoice. Remember, the clearer you are here, the better. Avoiding confusion by adding descriptive notes can benefit you if there is a question later on down the road.
Similarly, if you are allowing your customer to pay in installments, use theÂ Line Item section to make clear what installment is being paid and the end product or service (e.g., Installment 2 of 4 for Vegan Suede LoveSeat Couch, Color: Coral)
5. Adding a Discount & Request Deposit
Under our Line Items, we can opt to Add Discount. In the example below, I applied a 25% new customer discount to this gift basket order by manually entering it into the discount fields.
Under the total, notice that you can also Request Deposit. You can request a specific percentage upfront by adding in details here. Iâve added a request for a 50% due immediately upon receipt. Whether the purchase requires you to special order materials or you are holding an item for a customer, requesting a deposit can help reduce risk to your bottom line.
6. Fill In More Options
After you have all of the main parts of the invoice filled out, there is one last section: More Options. Here you can do even more to organize and keep on top of the invoices you send:
Request a Shipping Address
Allow a Customer to Add a Tip
Allow Customer to Save a Card on File
Square Invoices automatically sets up reminders, but you can select Edit RemindersÂ (as seen to the right) and edit the frequency around the due date. If you select Tipping, your customer will have the ability to manually add the tip amount or choose a percent to add to the total.
Store Cards on File For Faster Payments
Storing a card on file can save your customer time and streamline the process for everyone. When you process a payment with a card on file, it is going to cost you a little bit more in processing costs, however. To refresh your memory, processing a Card on File payment costs 3.5% plus $0.15. If your customer sets up recurring invoices and approves automatic payments, you can see how this could benefit your business over the long run, despite the extra charge.
There are a few ways to create a Card on File for Invoices. First, you can select Card on File on the invoice, as pictured above. If you select this, your customer does all the work on their end with approval. If you are at your Virtual Terminal or at the Square Point of Sale app and want to add your customerâs card to the customer director for future billing, you can do that, too.
To add a card on file, head to the Customer Directory and manually add their credit card information. Square prompts you to print out and have your customer sign their approval to save their card on file. Make sure you keep that piece of paper in a safe place!
7. Attach Files
In addition to selecting the option for your customer to store their card on file, you can attach additional files that pertain to the order. Square lets you add up to ten files (up to 25 MB worth, total). This includes JPG, PNG, GIF, TIFF, BMP, and PDF file types. Attaching files such as contracts, mock designs, or information about the sale may help support your case if there is a chargeback issue in the future, so it pays to add as much pertinent information as you can here.
Need help drafting an agreement or documents? Square provides free professional contract templates so that you can customize and attach to invoices. Use these to spell out the details in your contract, get ahead of customer expectations, and avoid payment disputes. Square provides downloadable templates including Completion of Services, Order Forms, Improvement Agreements, Sale of Goods, and more. Visit Squareâs Build Your Contract page to find templates you may need and add to your invoices or keep on file.
8. Preview Invoice & Customize Appearances
After entering in all of the most important details of the invoice, letâs see how it will look for the customer. In the upper right-hand corner of the invoice screen, I selected âPreview.â Here is what we have so far.
You’ll notice right off the bat that the Square Invoice has a pretty large banner that is currently completely unbranded. Square reminded me through the green tutorial prompt that I can update my logo, color, and business information by heading to Account & Settings.
Letâs head there next and update the banner to reflect the brand. Adjusting these setting and information is located at Receipt under Account. Note that the settings, branding, and contact information that you apply in Receipts is also reflected in the settings and branding applied in Invoices and Estimates.
Below, I uploaded a logo and chose a background color from the available colors.
After scrolling through the sample invoice preview, I also noticed that Square had my business name, address, and phone number in the footer. If youâre like me and donât have a brick-and-mortar business location, you can adjust the details of your contact information, which is what I will also be doing in Account & Settings.
All you have to do to disable location display is toggle âShow Location.â The only contact details displayed on my invoices now are my business name, and contact phone number. Just how I like it!
9. Send Invoice
Here is our finished invoice. Note that we selected that the customer can save their card on file. Additional authorization is all ready for them to click right below Billing Information.
As I scroll down in the invoice, you can see that Iâve added a short note, itemized products, and the discount. Also remember that for this order, I required a deposit before assembling the baskets. When viewing the invoice, the total balance and the due date for the deposit are laid out clearly, as seen in the screenshot below.
And that’s it! The invoice ready to send to the client.
Track Invoices & Follow Up With Customers
If you deal primarily in custom orders, or you have multiple clients, it’s quite likely you have several outstanding invoices at any given time. The good news is that with Square Invoices, you don’t need to hope you’ve remembered to enter an invoice in your spreadsheet so nothing slips through the cracks.
In the Square Dashboard,Â you have many options to sort and search for invoices. You can search for and view every invoice youâve sent by customer ID, invoice ID, invoice title, or customer email. You can also sort invoices to only display sent, outstanding, paid, scheduled, draft, and unsuccessful invoices. The other way you can sort your invoice view is by a specific date or a date set.
By selecting only to view outstanding invoices, you know who you may need to follow up with this week. Following up is easy â you simply select the invoice. As you can see in the screenshot below, a vertical screen appears to the right of your dashboard when you select the specific invoice. Here you can view the recent activity, and track when (or if) your client saw the invoice and any action taken with it.
At the bottom left, you can select Remind and draft a quick reminder message to send to your customer. Need to record a payment received by cash or check? No problem, you can manually add the amount by selecting Record Payment under the Payment Schedule section.
Pay Off The Invoice With Square POS
If your customer is standing in front of you or will be heading in to see you, the free Square POS app is a great way to take their payment. For one, if you swipe, tap or dip the card with a connected reader, you can process the payment at 2.75% rather than 2.9% + $0.30.
Here is the next payment screen. You can record partial or full payment or charge a swipe, tap, or dip a card on your connected device.
While we are here, I want to remind you that the Square POS app has all of the same invoice functionalities as far as processing payments, tracking, and yes â even setting up and sending invoices.
Sending An Estimate
Iâm happy to report that Square recently started supporting estimates. If you havenât quite closed the deal yet with your customer, or you provide a service-based business, sending an estimate is an essential step. You can access Estimates within the Invoices section.
I filled in the details of a bathroom remodel estimate below. The same branding and delivery methods apply to estimates as they do to invoices, so if youâve already set that up, you’re all set! Head back to the previous section in this tutorial,Â Preview Invoice & Customize Appearances, for a refresh on how to update logo and colors if you haven’t yet.
As you can see, the process is nearly identical to send an invoice and an estimate.Â
Is Square Invoices Right For You?
As far as making your life easier as a business owner, Square delivers when it comes to simplicity and ease of use. As far as getting paid, invoicing a client is a bit more expensive when it comes to processing credit cards, but you can send an unlimited amount of invoices for free, record check or cash payments, and get the simple tracking and reporting tools with no added fees.
If you compare Square Invoice to paper printing, mailing, and waiting, itâs no contest â Square wins hands down. But Square does have its limitations. If you are looking for advanced reporting features, integrated expense tracking, and live bank feeds, you may want to shell out some more money for a premium solution like FreshBooksÂ (read our review). Check out our Invoicing Software Comparison chart to see different options available.
That being said, I like that Square seems to be listening to their user base when it comes to improving functionality and offering more solutions, as evidenced by the recent addition of estimates this year. All in all, with Square you have everything you need to send an invoice or a deposit request and easily track activity for follow-up. If you are ready to give it a shot, set up a free Square account and start sending invoices!
Want to know more about Square? Again, don’t forget to take a look at our Square Invoices Review, and for a better look at everything Square can do for you, check out our complete, in-depth Square review!
The post How To Use Square Invoices To Ensure You Get Paid On Time appeared first on Merchant Maverick.
If you’ve arrived at our comparison of Shopify and Etsy, I’m guessing you’re an online seller (or an aspiring one) of the “artsy” or “craftsy” variety. Perhaps even “artsy-craftsy.” Whichever identifier you prefer, you’ll be pleased to know that both Shopify and Etsy can help you sell all sorts of unique, handcrafted, and/or vintage items.
I’ll admit that in some respects, it’s a little unfair to compare Shopify and Etsy head-to-head. Shopify is a shopping cart platform/website builder you can use to create and manage your own, standalone ecommerce store. The Shopify brand itself operates almost completely in the background from your shoppers’ point of view. (If you build your store correctly, no one will know that it’s really powered by Shopify.)
By contrast, Etsy is an online marketplace that allows youÂ to set up shop directly alongside other ecommerce vendors, all with a similar artsy and/or craftsy vibe. All the while, Etsy’s involvement in the whole operation is directly front and center for your shoppers.
You could also argue that a direct comparison between Shopify and Etsy is quite fair and appropriate. People often wonder 1) which of the two software platforms provides the best starting place to sell online, 2) under what circumstances it makes sense to use one or the other (or both), and 3) at what point a seller might need to transition from Etsy to Shopify.
Plus, the introduction of Pattern by Etsy a few years ago made the comparison between Shopify and Etsy even more apropos. For a monthly fee, Pattern makes it possible for Etsy sellers to maintain a standalone, inventory-synced site of their own. Sites built with Pattern can even offer additional products and services that don’t meet the handmade/vintage/craft supply restrictions of normal Etsy shops.
Pattern aside, a huge draw of Etsy in its original form is the built-in traffic and existing customer base from which you can directly benefit as a seller. (You don’t get that with a standalone Pattern site.) The downside, of course, is that you must share your customers with similar stores.
So, with Pattern thrown in, can Etsy compete directly with Shopify? Does the magic combination of Etsy and Pattern render Shopify completely unnecessary for some Etsy-type sellers? You can already tell from our chart at the top of this article that we are still fans of Shopify, but we think all sellers should understand precisely how these two services stack up on all the important dimensions. Ultimately, the right fit is up to you.
Shopify’s eCommerce Options
Mobile App + Free Card Reader
Point of Sale
Social Media Selling
Low-cost POS for iOS and Android with free hardware
All-purpose POS integrated with all sales channels
Build a store or integrate with your current website
Sell on Facebook and other platforms
Starts at $9/month
Starts at $29/month
Starts at $29/month
Starts at $9/month
Despite some overlap, there’s no getting around the fact that Shopify and Etsy have very different pricing structures. The differences are significant enough that we can’t call a clear winner for cost.
Here’s a very generalized way to compare the two:
Sellers who are just getting started, are very concerned about cash-flow, and simply can’t afford a monthly subscription fee will find an initially cheaper option in Etsy.
Once you have a moderate and fairly predictable stream of transactions and need a full website for your store, Shopify starts to become more cost-effective.
That’s the condensed version of our pricing comparison. For the full breakdown, strap in and keep reading!
When comparing these two platforms, you should first wrap your mind around the main categories of fees involved. It will also help to keep the following overarching difference in mind: Shopify’s main charge is a monthly fee for using the service, while the main component of Etsy’s cost is a fixed 5% transaction fee charged on every sale that occurs on the platform.
Here are the different categories of costs you should keep in mind when comparing Shopify and Etsy:
Monthly Fee: Subscription fee for using the platform.
Listing Fee: Cost of listing a product (or group of products that make up one listing) in your shop.
Transaction Fee:Â Percentage commission per sale charged by Etsy or Shopify itself.
Payment Processing Fee:Â Not the same as a transaction fee!Â This is a per-sale fee (usually a percentage and a dollar amount) charged by your credit card processor/payment gateway. While this entity is usually a third-party company, it turns out both Etsy and Shopify have an in-house, pre-integrated option that most sellers use (Etsy Payments and Shopify Payments, respectively).
Standalone Website:Â Cost of having your own, hosted website with a customizable theme template.
Let’s take a close look at the numbers, shall we? All prices will be shown in USD.
Shopify plans have a monthly fee, no listing fee, and a variable transaction fee that only comes into play if you do not use Shopify Payments as your credit card processor. Starting at the $29/month level, you get your own store website. This involves choosing a free Shopify template or purchasing a premium template from the Shopify theme store. As you look through Shopify’s five pricing plans, remember that you can completely avoid Shopify’s extra transaction fee if you use Shopify Payments as your credit card processor.
Shopify Lite PlanÂ
Monthly Fee: $9/mo.
If Using Shopify Payments: None
If Using External Gateway: 2.0%
Payment Processing Fee (Online)
Shopify Payments: 2.9% + $0.30
External Gateway:Â Varies
Standalone Website: Unavailable. Sell on an existing website, Facebook, or in-person only.
Basic Shopify Plan
Monthly Fee: $29/mo.
If Using Shopify Payments: None
If Using External Gateway: 2.0%
Payment Processing Fee (Online):
Shopify Payments: 2.9% + $0.30
External Gateway:Â Varies
Standalone Website: Included. Templates are $0-$180/ea.
Monthly Fee: $79/mo.
If Using Shopify Payments: None
If Using External Gateway: 1.0%
Payment Processing Fee (Online):
Shopify Payments: 2.6% + $0.30
External Gateway:Â Varies
Standalone Website: Included. Templates are $0-$180/ea.
Advanced Shopify Plan
Monthly fee: $299/mo.
If Using Shopify Payments: None
If Using External Gateway: 0.5%
Payment Processing Fee (Online):
Shopify Payments: 2.4% + $0.30
External Gateway:Â Varies
Standalone Website: Included. Templates are $0-$180/ea.
Shopify Plus:Â Custom pricing.Â Reserved for enterprise-level customers.
With each bump in subscription level, Shopify sellers have access to additional features, as well as more staff accounts for their stores. Check out our full Shopify review, or our quick guide to Shopify pricing, for a more complete breakdown of features by plan.
Same as above
Same as above
Same as above
Etsy has two main plans — Standard and Plus — and a Premium plan that will launch sometime in 2019. Most Etsy sellers use the Standard plan with no monthly fee, whereas the Plus plan is $10/month. Other components of Etsy’s cost include a fixed listing fee, as well as 5% transaction fee on every sale. There is no avoiding this 5% fee, even when you use Etsy Payments as your credit card processor.
Also, keep in mind that your only web presence is your shop page within the Etsy marketplace. If you’d like your own store website separate from (but synced to) your Etsy shop, you can create and maintain a Pattern site for an additional $15/month.
Here are the plans:
Listing Fee: $0.20/ea.
Lasts 4 months
Charged when listing is first published or when renewed
Standalone Website: None, or $15/month with Pattern. Pattern site templates are free.
Monthly Fee: $10/mo.
Other Costs Same As Above
A monthly budget of credits for listings and Promoted listings ads
Access to a discount on a custom web address for your Etsy shop
Restock requests for shoppers interested in your items that have sold out
Advanced shop customization options
Access to discounts on custom packaging and promotional material like boxes, business cards, and signage
Will include premium customer support and advanced management tools for businesses with employees
One final note about pricing before we sum up this section: if you want a standalone site built on Pattern, you’ll also need to purchase and/or connect a domain name. The annual cost varies, but should be comparable to purchasing a domain for a Shopify store. Of course, if you stick to just selling on Etsy and not on Pattern, you don’t need your own domain URL.
Again, this is one of those comparisons you’ll have to decide the winner of for yourself. You can see that once you have a steady flow of significantly-sized transactions, avoiding that 5% Etsy fee on every sale and ponying up $29/month for Shopify instead (and using Shopify Payments to have the Shopify transaction fee waived) starts to make more sense.
Shopify and Etsy stores are both fully-hosted solutions based in the cloud. You don’t need to download or install anything to use either. If you create an Etsy-connected website using Pattern, your site’s hosting is covered by your $15/month Pattern subscription. Similarly, Shopify store hosting is covered by the monthly fee.
Specific Size Of Business
Shopify deserves the win in this category for accommodating a much wider range of business sizes. For just $9/month, you can start selling on Facebook with no additional transaction fees (beyond payment processing itself) if you use Shopify Payments. From there, Shopify scales all the way up to enterprise-level merchants. Etsy, on the other hand, is better geared toward small to mid-sized operations and doesn’t scale nearly as well. That said, for those who just want to test the ecommerce waters and dabble in selling a few handmade or vintage products, Etsy is ideal.
Hardware & Software Requirements
No special hardware or software is required to open and manage a shop on either platform. You do have the option to add hardware (like card readers) if you wish to sell in-person.
Ease Of Use
Shopify usually earns our top rating for ease of use in the ecommerce software category, and with good reason. In this case, however, I’m awarding Etsy the narrow win. As a marketplace with a uniform structure across all web shops on the platform, the whole Etsy setup process is much less open-ended, so it’s easier to start selling right away. Once you fully dive into the admin dashboard and start manipulating individual features, however, I think the two platforms are equally easy to use.
Let’s peek inside the setup process and backend structure of each system, so you can see what I mean.
Shopify offers a two-week free trial of the platform — all you need is an email address. You’re free to test the software to your heart’s content, short of making actual sales.
Once you’ve started a trial account, you’ll gain immediate access to your store’s admin panel. The Shopify dashboard is quite streamlined, with daily operation menus contained in the left sidebar. There are even a few tips to get started setting up your store in the center area:
Shopify — Add A Product
Listing your first product is typically one of the first tasks inside Shopify, but it doesn’t have to be. Adding a product involves completing a simple interface:
In addition to configuring products and setting up the rest of the backend of your store, you can work on customizing your online storefront at the same time. We’ll have more on this process in the Web Design section.
While Shopify is easy to use, you are ultimately responsible for locating and configuring all the settings (shipping, tax, billing, etc.) to get your store going.
The cookie-cutter look of Etsy shops is no accident — it’s achieved through a simple, highly-controlled system behind the scenes. In fact, Etsy guides your hand to such a strong extent that by the time you’re taken through the basic setup process, you already have a store that’s up and running.
Unfortunately, there is no free trial of Etsy. Instead, you must enter a product, your bank account routing number, your credit card info, and other personal/business details before you can even enter the admin dashboard. Coming from the land of ecommerce software where no-credit-card-required free trials abound, I find this system annoying. However, I can’t deny that it is also very effective.
From my personal Etsy account, I’ve used to make Etsy purchases in the past, I simply clicked “Sell on Etsy.” I was then taken through a very detailed setup wizard, all the way from setting my country, to listing my first product, to inputting my billing and payment methods. As you can see from the dots across the top of the wizard interface, it’s a five-step process:
When you finally make it to the main admin panel (called Store Manager), you’ll find it’s actually fairly similar to Shopify. In my own testing, I could find all the menus and features I was looking for in the left sidebar:
Etsy — Add A Product
The most detailed piece of the store setup wizard is step three: adding products (a.k.a, listings). As I mentioned, you’re forced to list at least one item before you can even complete the Etsy signup process and see your main dashboard. Below is the third screen from the setup wizard. Yep, it’s long. Click it to enlarge, if you dare.
This may seem like a lot of work, and it kind of is. Mercifully, Etsy makes it all extremely straightforward. You just need a touch of patience. As part of this process, you’re actually also setting up a shipping profile that can then be reapplied to other products. And, once you choose the type of product you’re selling, Etsy is very good about predicting the type of attributes and variations you might need for that product. I walked away from the processing thinking, “Wow, Etsy knows its sellers and their products really well.”
Side note: Once you finally make it to your dashboard, you can load additional products with a similar interface:
As soon as I was (finally)Â done with the initial setup wizard, my shop was online and ready to sell. I received so much guidance steering me directly to the goal that I almost felt like I was tricked into suddenly having an active store. In a good way, I guess!
I’ve focused on getting a store up and running in this section as an illustrative example — there are lots of other components of each platform to consider. As you’ll see in our Feature section below, though, Etsy has fewer features than Shopify overall. This makes it easier to quickly get a handle on the entire software platform’s capabilities and scores Etsy another point for user-friendliness. Still, the ease of going from zero to ready-to-sell is what really puts Etsy on top.
Let’s acknowledge right away that comparing the features of Etsy and Shopify is hardly an apples-to-apples endeavor. One is an online marketplace including multiple sellers, while the other is a platform on which to build a website that you ultimately own. Etsy has a specific target market of crafters, vintage resellers, and the like, while Shopify’s merchant pool is much wider. The feature sets of each platform work really well for sellers within their specific contexts. Once we add Etsy’s Pattern to the mix, the comparison gets a little closer, but it’s still slightly unfair to both systems.
I do think the best “features” of Etsy have already been highlighted — it’s very easy to get started selling, and you’ve already got a built-in traffic base. Beyond these important advantages, there’s not a lot you can do on the back or front end of your Etsy and/or Pattern shop that you can’t do with Shopify. And, if the core Shopify platform doesn’t have a specific tool you’re looking for, I can almost guarantee you’ll find a solution in the immense app store (more on that later).
All in all, I’m giving Shopify the win because I think it’s a more advanced system for ecommerce. Shopify adds several features that Etsy and Pattern are missing, like checkout on your own domain (customers are redirected back to Etsy if they purchase through your Pattern site), manual order creation, a built-in POS system, and bulk product import/export/editing. In addition, many of the features the two platforms share in common are more robust or flexible with Shopify (I’m thinking of their respective discount engines, abandoned cart recovery systems, SEO tools, etc.).
Despite their core differences, Shopify and Etsy/Pattern still have a lot of great things in common. Thus, I’d like to end this section with aÂ list of someÂ features both platforms share:
Sell unlimited products
Sell physical or digital products
Free SSL certificate (with Pattern)
Built-in blog (with Pattern)
Social media sharing
Automatically calculate shipping & tax
Purchase/print shipping labels
Inventory & order management
Create discounts & coupons
Abandoned cart recovery
Analytics & reports
Mobile store management app
Shopify easily wins this category, even after you throw Etsy’s Pattern software into the mix. Shopify’s frontend template options have Pattern’s beat on all counts — the sheer number of options, the variety of styles, and the overall quality of designs. Not to mention that once you’ve chosen a theme, Shopify gives you much more flexibility to perform further customizations. Allow me to illustrate!
Shopify offers 70 templates, most with 2-4 style variations. Ten themes are free and supported by Shopify developers, while the remaining third-party themes are offered at $140-$180 as one-time purchases.
I think most of the free themes from Shopify outshine Pattern themes, but we’ll get to Pattern in a moment. For now, you should know that Shopify has tools to adjust fonts and colors (via the Theme Editor), and to drag-and-drop page elements up and down your layout (via the “Sections” tool) — all without touching any code. You can also make further adjustments with code if you have those skills, but this is not necessary for the average user.
Here’s a quick screen-grab of Shopify’s visual, non-coding editor:
For more information on how these tools work, check out our full Shopify Review.
Your Etsy shop comes with just one design template that’s the same as everyone else’s on the marketplace. You already saw the default store layout that popped up when I initially created my store. In the backend admin panel, you can customize your homepage by adding a banner image, your logo, a featured area to highlight products, an About section, and a few other basic elements. Each piece is fixed in place, though — no drag-and-drop tool to be found. Anywhere there is a little “+”, you can add a specific element:
With the $10/month plan, you have a bit more flexibility in your design. For example, you can insert a rotating image carousel in lieu of a fixed banner image across the top. And yet, there’s still no dragging nor dropping allowed.
If you decide to create a standalone website with the Pattern feature (remember, that’s another $15/month), you can choose from 10 possible templates. Pattern will recommend an option for your shop depending on your current Etsy store, but you can easily swap it out later:
Once you’ve chosen a theme, you have the option to customize your colors, fonts, text, and images — but again, all with pre-defined placement: Here’s the interface after I added a logo and header:
You can also add a few select pages to your site, like an About or Contact page. You just have to be okay with your layout being completely fixed for each page. Even if you wanted to try tweaking the template code, it’s just not an option.
Sorry, Etsy. Shopify has some of the best designs and editing tools of all shopping cart platforms on the market, so I’m not surprised that Etsy is completely overshadowed in this area. Pattern is only ideal for the most basic of websites. Fortunately, it does offer a 30-day free trial of a live site (once you’re already signed up for Etsy) if you’d like to test the site builder for yourself.
Integrations & Add-Ons
Etsy and Shopify each offer a collection of free and paid add-ons to integrate with your shop. The big difference is in the quantity. Etsy’s selection of a couple dozen apps just can’t compete with Shopify’s approximately 2500 offerings. If you’re worried about the quality of these Shopify add-ons, you have access to thousands of user reviews in the app store. You’re likely to find anything and everything you need to expand your store beyond the core Shopify platform.
A large selection is certainly great, but with the important caveat that the vastness of it all could end up becoming too overwhelming, costly, and unnecessary for small sellers. I was happy to see that Etsy at least offers a few well-known accounting and tax integrations (e.g., Quickbooks, Wave, TaxJar, TaxCloud) and email marketing apps (e.g. AWeber, or MailChimp if you use Pattern). You’ll need to decide if you will ultimately need the store expansion capability that Shopify provides, or can settle for Etsy’s offerings. If you set up a Pattern store, you’ll definitely want to add a good SEO integration.
Payment processing is a complicated and nuanced topic, so we’ll just cover some basic comparisons. Your mileage on this verdict in favor of Shopify will vary depending on your location, currencies, risk level, etc.
We’ve already mentioned that Shopify and Etsy both have their own self-branded payment gateways. Do note that Shopify Payments is actually built on Stripe’s infrastructure, while Etsy Payments is largely powered by Adyen, another big payment gateway company.
At any rate, most sellers on either platform end up using these pre-integrated options. Why? Well, even though you have over 100 processor options with Shopify, recall that you’re penalized with a separate transaction fee (usually 2%) if you don’t pick Shopify Payments. Meanwhile, Etsy Payments (formerly Etsy Direct Checkout) is essentially your only credit card processor option with Etsy. The only reason you wouldn’t use Etsy Payments is if it’s not yet available in your location. If you’re not operating from one of the approximately three dozen approved countries, you can only accept PayPal or manual payment methods (like check or money order) that you arrange separately with your buyers.
Etsy Payments allows you to accept credit and debit cards, Etsy gifts cards and credit, PayPal (pre-integrated), a few bank transfer services, Apple Pay, and Google Pay. Shopify Payments offers similar options but adds Amazon Pay and Shopify Pay to the mix. Meanwhile, Etsy Payments does allow you to accept a few more currencies than Shopify Payments (Danish or Norwegian krone, anyone?).
Below is a quick look at the processing fees for Shopify Payments versus Etsy Payments (shown in USD). As you’ll see, Shopify Payments it the better processing deal, especially as you climb the subscription ladder. Of course, you need to factor this into the larger picture of costs we discussed earlier.
$9 Lite Plan
2.9% + $0.30 Online (including manual entry)
$29 Basic Plan
2.9% + $0.30 Online
$79 Shopify Plan
2.6% + $0.30 Online
$299 Advanced Plan
2.4% + $0.30 Online
3% + $0.25 Online
In-Person (with Square integration only):
3.5% + $0.15 for manually-entered online transactions
+ $0.20 for any Square product not synced with your Etsy store
An “in-house” payment processor can really streamline this aspect of your business, so it’s nice that both platforms offer one. Neither is a 100% perfect processor for everyone, as you’ll see when we discuss user reviews later. Nevertheless, Shopify Payments comes out ahead because it offers better rates, more payment methods for shoppers, and a native system for in-person transactions. Plus, if Shopify Payments doesn’t work for you, you’ve got plenty of other gateways from which to choose. Not so with Etsy.
Customer Service & Technical Support
This particular contest was closer than I expected. Both platforms offer 24/7 email and phone support, but Shopify adds a third contact channel via 24/7 live chat. That’s really the main reason for Shopify’s win here. I know a lot of online sellers prefer this option over email and phone, since it works like a nice blend of the two. Etsy does offer a callback option when waiting on hold, which is very handy. On the flip side, I’d like to see Etsy’s contact number and ticket system more easily accessed from the help center page — it’s much too buried for my taste at the moment.
While both platforms also offer great self-help resources such as blogs, forums, knowledgebase articles, and videos, the information for Etsy sellers is mixed in with support resources for Etsy shoppers. This can feel a bit cluttered and confusing at times.
I will say that Etsy does go beyond the support of a typical ecommerce platform in a unique and specific way. As a marketplace that gathers lots of merchants together in one place, sellers are automatically part of a built-in community. There’s even an opportunity to join Etsy Teams — groups of sellers in the same location, selling the same types of products, or with other unifying aspects to their stores. Some teams even meet up in real life or organize special events together. While Shopify users can tap into the strong community of developers and merchants offering mutual support in forums, the overall camaraderie can’t compete with Etsy’s community vibe.
You also may have more access to seller protections as part of a marketplace, but this can heavily depend on the specific situation. Etsy aims to look out for its shoppers as well!
Because Etsy is a marketplace full of buyers as well as sellers, buyer complaints abound. When something goes wrong with a sale, it’s more accessible and more public for a shopper to point a finger at Etsy than the actual seller, even when the seller was primarily at fault. Shopify mostly operates behind the scenes from a shopper’s point of view, so it’s easier to isolate feedback about the platform that’s specifically from store owners.
For these reasons, Etsy’s reputation on review sites can be skewed quite negatively, so I can’t make a truly fair comparison with Shopify. Nevertheless, I’ve teased out some seller-specific feedback, just so you can get an idea of the common threads that appear.
First, the good. Not surprisingly, Etsy sellers like how easy it is to set up shop. They enjoy access to an existing customer base and the effective site search tools that make it easy for shoppers to find their products. Some users have mentioned their positive experiences with Etsy’s customer service, and the help they’ve received resolving disputes with customers (or even other sellers).
Of course, some Etsy sellers mention bad experiences with customer service, saying the marketplace isn’t taking enough responsibility for regulating seller behavior. I found several complaints that Etsy gets away with being a “neutral” party, shifting blame to its users on either end of transactions. At the very least, people are confused about Etsy’s role.
Other Etsy shop owners contend that the marketplace is too saturated with similar sellers, and that competition is simply too tough to sustain their shops. Still others have issues with payments or chargebacksÂ or claim their shops were suddenly closed without warning. I’ve also seen plenty of sellers lament the increase in Etsy transaction fee from 3.5% to 5% in mid-2018 — that wasn’t so popular.
On the Shopify side, the top accolade is typically its ease of use. Sellers also like the opportunity to add functionality and scale their stores using add-ons from the app store. Shopify’s web design is highly praised, especially among those who appreciate the ability to easily customize their sites without code.
Like with EtsyÂ — and many other large software companies — Shopify’s customer support receives mixed reviews. Other common Shopify complaints include the added cost of integrations and the extra transaction fees if you can’t use Shopify Payments. Sellers do sometimes have problems with the payment system itself as well — their funds were held, or their Shopify Payments accounts were terminated due to various factors.
If that all sounds a bit scary, understand that a lot of the problems that pop up for Etsy and Shopify are common across the ecommerce world. The good news is that the research you’re doing now will help protect you against some of the more avoidable issues!
Etsy and Shopify are both PCI complaint systems, offering site-wide SSL certificates for data encryption. If that all sounded like nonsense and jargon, don’t worry. You should know, however, that part of the reason Pattern websites meet security requirements set out by the data regulatory folks is that your shoppers are directed back over to Etsy checkout pages to complete their transactions. This kind of ruins the illusion that your site was actually your own site, but it does at least help with security. With Shopify, your customers can check out directly on your site with the same level of security in place.
Shopify won this battle handily, coming out ahead in most of our individual comparison categories. And yet, I’ll be the first to admit that the one-sidedness of our comparison does not do the key selling points of Etsy justice. The main advantages to Etsy — the ability to get a shop up and running quickly on a shoestring budget, and built-in access to the traffic of an entire online marketplace — are absolutely huge for beginning sellers. If you’re not ready to go whole-hog into selling online and would prefer to test the waters first, Etsy is definitely the way to start. For first time sellers, it’s akin to setting up your craft booth at an established craft fair, versus plopping your stall on a street corner in the middle of nowhere.
This is all to say that Shopify only really wins if you’re ready to take responsibility for maintaining and drawing traffic to your own website. You’ll need to learn and implement an effective SEO and marketing strategy, for example. This is no small feat for the budding online seller and should not be taken lightly. If done well, however, any customers you obtain are your own, and this is the big reward that accompanies your efforts with Shopify. Your sales and growth will not be limited by super-direct competition with other sellers within a marketplace. You’ll completely sidestep this major downside to Etsy.
When we start talking about actual ecommerce features and web design, Shopify is a more powerful ecommerce tool. Specifically, we’ve seen that Etsy’s Pattern software can’t compete with the standalone storefront-building capabilities of Shopify. For most sellers who are ready to launch their own websites, I’d suggest skipping over Pattern and heading for Shopify. Yes, a Pattern subscription is cheaper than Shopify, but it seems like too much of an intermediate, half-way step that won’t get you fully where you want to go. Besides, there’s no reason you can’t keep your Etsy shop open in the meantime as you grow your Shopify-based store — and, you could ultimately connect an app to sync up your inventory between the two. Etsy could then become one marketing channel of many for your main online store’s top products. Something to consider!
I think if you’ve made it this far, you’re probably ready to at least test the capability of Shopify with a free 14-day trial. Of course, if you’re already an Etsy seller, you can also play around with Pattern’s tools for free before even connecting a domain and going live with your site. Since you’ve got nothing to lose with either platform in that respect, why not set up your own mini-showdown between Pattern and Shopify?
Let us know how it goes in the comments. Happy artsy, craftsy, or artsy-craftsy selling!
Shopify’s eCommerce Options
Mobile App + Free Card Reader
Point of Sale
Social Media Selling
Low-cost POS for iOS and Android with free hardware
All-purpose POS integrated with all sales channels
Build a store or integrate with your current website
Sell on Facebook and other platforms
Starts at $9/month
Starts at $29/month
Starts at $29/month
Starts at $9/month
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WooCommerce and Shopify are both wildly popular software systems that can help you build a thriving online store. Behind-the-scenes, however, the two platforms work quite differently from one another. Before we jump into comparing these juggernauts of the ecommerce software realm, let’s quickly get oriented on the basics of each.
At its core, Shopify (read our review) is a SaaS (software as a service) online shopping cart platform. Starting at just $9/month, you can upload products to an online catalog and sell them on Facebook, or post them on an existing website of your own via embeddable “buy” buttons. You can even sell your products in-person with the Shopify POS app. Then, beginning at $29/month, Shopify facilitates the creation and hosting of a fully-fledged ecommerce website.
By contrast, WooCommerce (read our review), is a free and open-source ecommerce shopping cart plugin that was created specifically for installation inside the WordPress dashboard. The WooCommerce plugin turns a WordPress website or blog into an ecommerce storefront. In other words, WooCommerce has no actual website-building capabilities of its own — WordPress handles that part.
To understand WooCommerce and how it works, you need a little familiarity with WordPress itself. To put it simply, WordPress is a website builder/CMS (content management system) that exists in two forms: WordPress.org and WordPress.com. WordPress.org is the self-hosted version, whereas WordPress.com uses the same basic software as WordPress.org, but provides web hosting for your site as part of its services. Either WordPress version can actually be combined with WooCommerce, but each setup has different implications for cost, site maintenance, etc.
For the purposes of our Shopify versus WooCommerce comparison, we’ll focus on combining WooCommerce with WordPress.org, the self-hosted option. Most ecommerce sellers are attracted to WooCommerce because they already use WordPress.org for their websites, and/or they like the WooCommerce plugin’s “free” price tag in conjunction with WordPress.org. While the WooCommerce plugin itself is always free, you can only add plugins to the dot-com version of WordPress if you’re on the $25/month WordPress.com subscription.
Now that you know the basics, we’ll break down the two platforms into their various components — usability, features, comprehensive cost, and more. It’s basically the same old compare-and-contrast essay we were all forced to write in middle school. The stakes are a bit higher with this particular essay, however. By the time we’re done, you’ll hopefully have a good sense of which ecommerce platform (if either) is best for your online business.
You might be tempted to think WooCommerce immediately takes this category without contest. After all, both the WooCommerce plugin and the WordPress.org software download are free, whereas Shopify automatically involves a monthly subscription. In reality, you need to invest in a few services (e.g., web hosting) to get a WooCommerce + WordPress.org ecommerce store off the ground. The bottom line is, WooCommerce may be a bit cheaper at the outset, but it’s not 100% free. Just wanted to clear that up first!
Before we run a more detailed cost comparison of the two platforms, here’s a quick look at why WooCommerce wins this category:
You can launch an online storefront up for well under $29/month, which is the starting price for a full online store with Shopify.
All WooCommerce features are included with the free plugin. You don’t automatically need to jump to higher subscription levels for additional features or staff accounts (you just may need some add-ons as time goes on). In other words, you pay only for exactly what you need.
Neither WordPress nor WooCommerce charge any additional transaction fees per sale, beyond those charged by your credit card processor. Shopify only waives its extra transaction fees (that start at 2%) if you use Shopify Payments as your credit card processor, and not everyone is eligible for Shopify Payments.
WooCommerce is the budget option of the two, but only if you have the skills to run your own website and don’t need to hire extra help for web development, site maintenance, security, backups, etc. If you do need lots of extra help, you could still end up paying more with WooCommerce + WordPress in the long run. Fair warning.
That’s the summary explanation. Now, here’s a more detailed pricing breakdown if you’re interested:
Monthly Subscription Fee: $9 (no standalone storefront), $29, $79 or $299/month.
Domain: Unless you want your store URLs to end in “myshopify.com” (and you probably don’t), you’ll need to purchase or connect a custom domain. Domains from Shopify start at $11/year, or there are lots of third-party options.
Web Hosting: Included
SSL/TLS Certificate: Included
Additional Transaction Fees:Â 0.5%-2.0% depending on your Shopify subscription — unless you use the in-house payment processor (Shopify Payments), in which case these extra fees are waived. Note: these transaction fees are on top of regular credit card processing fees you must pay per sale with any processor.
Additional Cost:Â Primarily add-ons from the marketplace, and perhaps a one-time purchase of a premium theme.
WooCommerce + WordPress.org Pricing
Monthly SubscriptionÂ Fee: None if you set up a free WordPress.org site. The WooCommerce plugin itself is always free.
Domain:Â Varies, but can start at less than a dollar per month from third-parties.
Web Hosting:Â Rock-bottom hosting can cost as low as around $3/month, but most people end up paying at least $10 per month, depending on the size and traffic levels of their stores.
SSL/TLS Certificate:Â Often included with your hosting or domain provider, but may need to be purchased separately. Basic certificates cost just a few dollars per month.
Additional Transaction Fees:Â None. Neither WooCommerce or WordPress charge a commission per sale.
Additional Cost: Add-ons, themes, and any web development and ongoing site maintenance if you’re not taking care of all that yourself.
Sample WooCommerce + WordPress.org hosting
Cloud-Based Or Locally-Installed
As we’ve mentioned, a major difference between Shopify and WooCommerce is that your Shopify subscription includes web hosting. No downloads or installations are required. To use WooCommerce, however, you first must download the WordPress.org software and install it on a web hosting server. Then, you add the WooCommerce plugin to that setup. Some web hosts do offer preloaded WordPress + WooCommerce packagesÂ or “one-click” installations.
Is the Shopify or WooCommerce method better? This one really comes down to personal preference and ability. The self-hosted setup of WooCommerce requires more hands-on involvement and skill from the user, but you may be just fine with that.
Specific Size Of Business
Both WooCommerce and Shopify are scalable, working for small to enterprise-level businesses.
Shopify has predetermined subscription brackets. While none of these put hard limits on your revenue, number of products, bandwidth, or storage, the implication is that you’ll increase your subscription as your store grows. The exception is the jump to Shopify Plus, which is required if your revenue reaches over $1 million per year. These plans cost a couple thousand a month to start, but it can be worth the investment in return for a service that’s tailored specifically for enterprise-level merchants.
You will also need to change your Shopify subscription as you add more staff accounts to your store. For example, the $29/month plan accommodates two admin seats in addition to the owner’s account, while the $299/month plan gives you 15 spots.
WooCommerce also has the potentialÂ to grow with your store, but the system is much more fluid. You have 100% flexibility to expand your operation (and perhaps employ more help with your site) in a piecemeal fashion, exactly when and how you see fit. As your site traffic increases, for example, you’ll want to adjust your hosting service accordingly to accommodate more bandwidth.
Hardware & Software Requirements
As a fully-hosted, SaaS platform, Shopify takes care of nearly all technology requirements on your behalf. All you really need is an internet connection and an up-to-date web browser.
With WooCommerce and WordPress.org, most of the hardware and software requirements are functions of your hosting environment. Your server needs to support specific versions of PHP and MYSQL, for example. You’re responsible for staying on top of the evolving requirements for both WooCommerce and WordPress.org when you set up a WooCommerce store. This includes installing updates of both the Worpress.org and WooCommerce software as they are released. Plugins are available to help automate some of these steps for you, but you’re still ultimately responsible for finding and updating those plugins!
Because dealing with hardware and software issues with WooCommerce is more nuanced and requires more vigilance from the user than Shopify’s arrangement, we award Shopify the win.
Ease Of Use
It should be noted, however, that WooCommerce actually isn’t all that bad when it comes to ease of use, especially compared with most open-source solutions. For starters, many folks are already somewhat familiar with WordPress, which gives them aÂ head start in navigating WooCommerce. (Keep in mind that the reverse will apply if you’re not already familiar with WordPress — you’ll be learning two systems at once.)Â Once you get everything installed and up and running, day-to-day operations and manipulation of features are all pretty straightforward with WooCommerce.
WooCommerce offers to install some additional free plugins (like Jetpack and WooCommerce Services) from theÂ get-go that help bring the system more in line with a fully-hosted solution like Shopify, but you still end up with a sort of cobbled-together setup that is more difficult to manage than an all-inclusive platform.
Have a look at our full Shopify and WooCommerce reviews if you’d like more information on the topic of ease-of-use, but I’ve included just a quick peek at the dashboards of each platform, as well as what it’s like to add a product.
After signing up for a free 14-day trial, you’re taken to a clean and easy-to-navigate dashboard, with all your major functions in the left menu, and a few tips to get started in the center:
Shopify — Add A Product:
Shopify has a super-simple product interface. All fields are completed simply by scrolling down the page.
Below I’ve shown a WordPress dashboard with WooCommerce already installed. If you look closely at the left menu, you’ll see that WooCommerce is just one item of many. I haven’t even expanded its own menu yet, nor the “Products” menu right below. In the center of the dashboard, I’m faced with additional suggested configurations and plugin choices. Do I need them all? Should I set them up now? Just “Dismiss?” It’s certainly all doable, but I find it bit cluttered and overwhelming to get started. Plus, this is all after I completed the setup wizard.
WooCommerce — Add A Product:
Once you scroll past the plugin suggestions, adding a product is quite straightforward with WooCommerce. If you’ve ever used WordPress, it’s a lot like creating a blog post. You’ll just need to configure ecommerce settings like price and inventory levels.
Another aspect to consider is that you won’t be able to test WooCommerce (like you can test Shopify with its free trial) unless you have a host and server already set up to install WordPress.org. Ease of use is always a bit subjective, and it’s hard to get a good feel for usability without testing the software yourself.
Although one is software-as-a-service and the other is open-source, both Shopify and WooCommerce actually take a similar approach to features. The basic components to get a store launched and managed on a day-to-day basis are included with the software, but you’re expected to add a few extensions and integrations to either platform in order to tailor your store to your exact specifications.
With Shopify, this occasionally even means bumping up your subscription level, whereas with WooCommerce, features are always expanded through separate add-ons. WooCommerce has also been known to test new features by treating them as extensions first, and then eventually incorporating the features into the core offering once all the kinks are worked out by users. It’s really a community effort with Woo.
However you slice it, a common complaint about both platforms is that extra plugins can cause extra cost and extra headaches. Each system is kept as simple (yet functional) as can be from the outset, so that new users are not immediately overwhelmed by all that’s ultimately possible with these powerful software programs.
Let’s do a couple of quick sample feature comparisons. WooCommerce lets you add unlimited product variations, sell digital products, and incorporate product reviews without separate extensions, while Shopify requires (free) add-ons for each of these functions. Meanwhile, Shopify already includes abandoned cart recovery, invoice creation, and pre-integrated shipping software (Shopify Shipping). You’ll need extensions for these features in WooCommerce.
I’m tempted to give Shopify the win because I feel it comes with a slightly more well-rounded ecommerce feature set out-of-the-box without any plugins. And yet I also don’t want to overlook the enormous capability that comes with an entire WordPress.org ecosystem at your fingertips, nor dismiss the potential to customize each feature to your liking in an open-source environment. There are just too many factors at play to declare a clear winner here. The best advice I can give is to check for the features you need, as well as how they are obtained with each platform.
I know this makes our compare-and-contrast essay less exciting, but it’s difficult to call a winner in this category as well. Each platform has advantages and disadvantages, and your own perception of what actually qualifies as anÂ advantage or disadvantage will differ depending on your situation.
Below is a quick summary of each system’s approach to the design and customization of your storefront, along with some screenshots to help illustrate.
67 total templates, most with 2-4 style variations
10 templates are free and supported by Shopify developers
Remaining third-party themes cost $140-$180
Built-in theme editor with drag-and-drop capability
Additional customization available with HTML, CSS, and Shopify’s own theme coding language (Liquid)
Shopify Theme Marketplace:
Shopify Theme Editor:
The Shopify theme editor consists of two elements: “Theme Settings” (for changing fonts, colors, etc.) and “Sections” (for dragging and dropping widget blocks up and down your pages).
Access to thousands of free and commercial/supported WordPress.org themes (over 900 show up when filtering for “ecommerce” in the marketplace)
WooCommerce recommends its free “Storefront” theme for foolproof compatibility and web ticket support
14 Storefront “child” themes available (two free, premium are $39 each)
Theme editor allows color changes and placement of widgets (but without drag-and-drop)
Storefront expansion bundle ($69) allows further customization without coding
Theme modification also possible with HTML and CSS (no proprietary coding language involved)
Add a free plugin (such as Elementor) for drag-and-drop design editing of WordPress.org pages without code
WordPress.org’s new Gutenberg editor provides additional non-coding customization for your overall WordPress site
WooCommerce Storefront Themes:
WooCommerce Theme Editor:
Below, I’ve shown the portion of the built-in theme editor where you can choose widget blocks for various spots within your pages.
So, how do WooCommerce and Shopify stack up when it comes to web design? Does Shopify win for having a drag-and-drop theme editor and font tweaking built-in, or does it lose for making you learn a proprietary coding language if you want to do further template customizations? The new Gutenberg block editor for WordPress enhances your theme editing capabilities without code, and lets you easily place WooCommerce products wherever you’d like within your larger WordPress site — so that’s another factor to consider going forward. It’s issues like these that make this category a toss-up depending on your point of view.
Integrations & Add-Ons
Even though I’ve already spoiled the winner of this category, we need to highlight the fact that Shopify also has an amazing app marketplace with around 2500 integrations at your disposal. With Shopify, you have the opportunity to connect with many of the most popular third-party software platforms associated with ecommerce (think shipping, marketing, accounting, and the like). Thousands of developers have invested in creations for the Shopify extension ecosystem. In most ecommerce software battles, Shopify easily wins this category.
All that said, open-source systems like WooCommerce + WordPress.org typically offer more integration possibilities than even the most well-connected SaaS platforms. The whole point of an open-source platform is for users at large to jump head-on into the codebase to customize and build connections. In the open-source world, WordPress has a particularly enormous and active community of developers extending the platform. As a WooCommerce user, not only do you benefit from hundreds of WooCommerce-specific extensions, but also from the over 50,000 plugins available in the WordPress.org marketplace. Even Shopify can’t fully compete.
Some argue that because many WooCommerce integrations are one-time installations, it works out cheaper in the long run, or point out that more WooCommerce plugins are free. In truth, integrations can add to your monthly cost with either Shopify or WooCommerce — especially if your integrations are to third-party software platforms with their own monthly subscription fees (and not just one-off feature installs). Be cognizant of the potential for ballooning add-on costs with either system.
The complete freedom WooCommerce offers to choose a payment processor and associated pricing model that best suits your particular store’s needs is the reason we award the open-source plugin the win in this category.
While Shopify technically offers more pre-built payment integrations than WooCommerce in its respective marketplace, you are actually penalized with an extra 0.5% to 2.0% Shopify commission on every sale if you don’t select the in-house Shopify Payments option. This percentage — 2% for most merchants starting out — is applied on top of the fees charged by your payment gateway itself. Trust me, that extra 2% adds up fast.
Shopify Payments has its own advantages and disadvantages, but for starters, some merchants don’t even qualify to use this processor in the first place. While Shopify Payments definitely works well when it works, a lot of merchants end up stuck in no-man’s land when it comes to payment processing with Shopify. Caught between an extra fee and a hard place, as it were. (Insert your own, better metaphor here.)
While you may need to pay a one-time fee to integrate your favorite processor with WooCommerce (Stripe and PayPal come as free, built-in options), you can ultimately select an option that fits perfectly with your risk level, sales volume, and transaction size. You can also select for any customer support and feature requirements you may have for your payments system.
Customer Service & Technical Support
Winner: ShopifyÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Both WooCommerce and WordPress have produced a plethora of self-help resources and documentation. Moreover, both boast thriving communities of developers and merchants working with the software who readily share problem-solving advice via forums. This is all very good and helpful.
WooCommerce can’t compete with Shopify when it comes to personalized support, however. A “help desk” is offered with WooCommerce from which you can submit a web ticket for specific purchased items, but a personal response is not always guaranteed.
Meanwhile, along with great self-help resources and community forums of its own, Shopify offers 24/7 phone, email, and chat avenues for contacting live representatives in real time. This is part of the all-inclusive nature of the Shopify platform, and part of the reason you pay that monthly subscription fee.
Now, this is not to say you couldn’t potentially receive personalized assistance from your hosting provider if your site goes down, for example. The quality and availability of this sort of third-party tech support will vary widely by company, though. Not to mention, things can get complicated very quickly regarding exactly who holds responsibility for whatever’s gone horribly wrong with your online store in the middle of the night. Once again, our point is that neither WooCommerce nor WordPress.org has a team of service reps standing by waiting for your distress call. You’re largely on your own.
Shopify and WooCommerce each have devoted followings of satisfied users, and both platforms tend to score very highly on user review websites. Shopify merchants love the user-friendliness of a powerful SaaS platform where most things are taken care of for you, while WooCommerce devotees appreciate that most things are not taken care of for you — it gives these users the flexibility and control they desire.
Of course, neither ecommerce platform is perfect. Here are a few of the complaints that arise most often:
Extra transaction fees when not using Shopify Payments
I’m still calling this one a draw. One platform does not dramatically outshine the other when it comes to real user feedback.
Shopify wins this category because all Shopify stores are automatically PCI compliant out-of-the-box and come with a built-in SSL certificate. With WooCommerce, your store’s security falls more directly upon your own shoulders. You’re ultimately responsible for choosing a secure and PCI-compliant web host and payment gateway, obtaining an SSL certificate, performing Woodpress.org and WooCommerce plugin updates, and staying on top of the latest security patches. As WooCommerce reminds you in its own documentation, “a given WooCommerce site is overall exactly as secure as the WordPress installation itself.”
There’s no doubt that a WooCommerce storeÂ can be just as secure in as a Shopify store, as long as all the right pieces are in place and carefully managed. There’s just a higher chance for site security to go (horribly) awry due to mismanagement or innocent mistakes.
This was a tight race, folks. Shopify and WooCommerce have both earned their popularity in the ecommerce world, even if for different reasons and for different segments of online sellers. Based on our experience, as well as our sense of the needs of our Merchant Maverick readership overall, we’re still more likely to recommend Shopify over WooCommerce.
The majority of online sellers will have an easier time with Shopify right out-of-the-box. Shopify is much more “foolproof” and all-inclusive than WooCommerce, with technical aspects like installation, hosting, updates, and security all handled on your behalf. This allows you to expand your focus beyond just building and maintaining your store, even as an absolute web-beginner. The opportunity for 24/7 personalized customer support with Shopify is also a huge factor in our verdict.
All Shopify gushing aside, we firmly maintain that this SaaS platform is not a magic bullet solution for all online merchants, and WooCommerce may be just the alternative you seek. As an open-source software plugin combined with WordPress.org’s vast ecosystem, WooCommerce offers a degree of ownership, control, and flexibility that isn’t possible with Shopify. It’s the perfect platform for the technically-inclined among us who have the time and skill to tinker with code, updates, and integrations to customize their stores at a finely-tuned pace. The freedom to select your own web host, as well as a payment processor that works best for your specific country and risk level without financial penalty (hello, Shopify’s extra transaction fees) is also a big draw for a lot of business owners using WooCommerce. The power truly is in your hands if you go this route.
As the old adage goes, however: with great power comes great responsibility. If you choose an open-source platform like WooCommerce, you should definitely heed this nugget of graphic novel-based wisdom.
Have you worked with Shopify or WooCommerce? Let us know if the comments — particularly if you have experience with both!
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From business loans to credit cards, it’s assumed that funding a growing small business necessarily involves taking on debt. No pain, no gain, right? Well, in the event that your business doesn’t turn a profit, you’ll be taking on the pain without seeing any resulting gain. Wouldn’t it be nice if there existed a way to fund your small business that reliedÂ on your capabilities, not on your willingness to go into debt?
As it happens, there is one way to get funding that doesn’t relyÂ on your willingness to take on debt: small business grants.
What Are Small Business Grants?
A small business grant is a sum of money — issued either by a government agency or a private organization — awarded to a growing business. While it’s tempting to think of a grant as “free money,” that doesn’t quite capture the essence of a small business grant. For one thing, when a business receives money in the form of a grant, that money always comes with strings attached. The terms of a grant are usually quite specific about how the money can be used. It isn’t like getting a loan, where you get to decide exactly how to invest your funds.
Additionally, getting approved for a grant will likely involve lots of work on your part. Grants are difficult to qualify for and applyingÂ for them involves lots of jumping through hoops. Since time is money, grants aren’t exactly free of cost. Then again, these “costs” aren’t going to imperil your credit score!
Small Business Grant Pros & Cons
Long application process
Can lend prestige to your small business
Funds must be used in the manner specified by the grant
Getting one grant makes it more likely you’ll get others
Most applicants for a grant won’t get it
Grant information is always publicly available
Business grants are not always renewed from year to year
The nice thing about receiving a grant is that, because grants are generally awarded based on a company’s contribution to the public good, they come with a certain degree of prestige. In turn, getting one grant will make yourÂ business more attractive to other grantÂ issuers.
Of course, when you pursue grants, you need to be aware of the harsh realities. The vast majority of grant proposals are not accepted, and even if you are ultimately successful, the application process can be rigorous and time-consuming. What’s more, the money will likely be earmarked for a certain purpose. You can’t treat the money received via a grant like any other funding — you must use the money exactly as specified (or exactly as you laid out in your grant application).
The downsides of business grants don’t hold a candle to the downsides attached to other forms of business financing, however, so don’t let these challenges discourage you!
How To Find Business Grants
Business grants can be found by checking the online offerings of every level of government (federal, state, local) and by seeking out directories of private grants that allow you to search for a program that fits your mission and your business.
When searching for grant programs, narrow your search to those that pertain specifically to your business type. Since grants are often meant to incentivize social responsibility, certain businesses will be more likely to find a grant than others. A company working on a new type of water filtration system stands a better chance of scoring a grant thanÂ a vape juice maker, for example. Likewise, certain grants may be aimed at specific segments of the population. An organization might award grants specifically for women-owned businesses or veteran-owned businesses.
What To Do Before Applying For A Grant
Define your exact funding need: be ready to define the precise objectives a grant would help you meet.
Create a detailed business plan.
Gather and assemble all the business records you can from at least the last three years.
Have your plan and records reviewed by experts, whether they be SCORE mentors or others with experience in guiding business owners through the grant-hunting process.
Consider hiring a professional grant writer if you can.
8 Places To Look For Small Business Grants
Grants.gov is the place you should go if you want to search every grant program administered by the federal government. There are 26 grant-making agencies in the federal government, and although the website feels clunky and dated, you’ll at least get to search for the sort of grant program that your particular business could qualify for.
I should warn you, however, that most of the grants offered by the federal government are medical research grants, and these are typically awarded to nonprofit organizations and, in some instances, local and state governments. This blog post from the Small Business Administration details the limited instances in which private businesses may be eligible for a grant from the federal government.
Your State & Local Governments
This may actually be a better place to start your grant search than the federal grant database. That’s because grant programs initiated by your state government — or perhaps your city government — stand a better chance of aligning with your business mission than a federal grant program.
Check out your local Chamber of Commerce for grant opportunities as well as anyÂ city, county, and state websites that might have information about grant programs. Depending on where you live, selection may be limited, but you may well find a grant program that aligns with your mission. Most of these programs only accept grant applications at certain times of the year, so it pays to be vigilant and check the relevant websites frequently.
National Association For The Self-Employed
If a smaller grant for your small business is worth pursuing, the NASEÂ provides grants and educational resources for small businesses owners. Through their Growth Grants Program, grants of up to $4,000 are awarded to small business for specific purposes, such as hiring employees.
To apply for a grant, youâll first have to join the NASE. You’ll then need to detail exactly how you’ll use the funds and how the funds will fit into your overall business plan.
Along with grants, the NASE offers the following services to small business owners:
24/7 expert advice
UPS discounts up to 32%
$10K included term life insurance
Medical emergency help
Office Depot discounts
LifeLock ID theft protection
FedEx Small Business Grant Contest
The FedEx Small Business Grant Contest is a nationally prominent grant contest that has, since its inception in 2013, awarded over $500,000 in grant money to small businesses. Qualifying entities must be for-profit U.S.-based businesses with fewer than 99 employees and at least 6 months of time in business.
The contest is held annually, with applications typically accepted starting in late February. Keep a watch on FedEx’s website to find out when you can apply.Â Here is a closer look at the winners of the 2018 Grant Contest.
USDA Rural Business Enterprise Grant Program
An endeavor of theÂ United States Department of Agriculture, this grant program offers grants of between $10,000 to $500,000 to rural small businesses. If your business has fewer than 50 employees, takes in less than $1 million in annual revenue, and is located in a rural part of the US, it is eligible to apply.
Rural small business owners looking to apply should do so through theirÂ USDA Rural Development state office.
Amber Grant Program
The Amber Grant program is a grant set up by WomensNet to support female-owned small businesses. This is how it works:Â the program awards $1,000 to a woman-owned business every month. At the end of the year, one of the 12 monthly grant winners wins another grant for $10,000. All female entrepreneurs in the U.S. and Canada are eligible to compete, and there are no restrictions on the type of business eligible to receive a grant.
The program accepts applications year-round, and unlike some other grant programs, the Amber Grant program makes applying as easy as possible. According to WomensNet:
Applying for theÂ Amber GrantÂ is easy. Donât try to âsound corporate.â Past grant winners are women who have simply shared from the heart. Our judges are looking for passion as well as business smarts.
Visa Everywhere Initiative
The Visa Everywhere Initiative is a multi-national grant program offering grants to companies meeting the following description:
When evaluating submissions for VEI, we look for startups that have ideas relevant to Visaâs business, a product in market, traction with early customers, and early funding from external investors.
Submissions for the 2018 program were accepted from March 19th until April 23rd, so if you’d like to submit your proposal for the coming year, keep an eye on the VEI website around that time of year and look for information on how to apply.
StreetShares Foundation Veteran Small Business Award
StreetShares is an online lender specializing in lending to veterans and veteran-owned businesses. The lender also has a grant program called theÂ StreetShares Foundation Veteran Small Business Award. The program is open to any military veteran, reserve or active duty member of the Armed Forces, or a qualifying spouse.
The StreetShares Foundation is currently accepting applications for the upcoming cycle of the Veteran Small Business Award, so if you’re interested, apply now. StreetShares gives out three grants at the end of each contest. 1st place gets $15,000, 2nd place gets $6,000, and 3rd place gets $4,000.
Donât Qualify? The Best Alternatives To Small Business Grants
Grants are awesome because you don’t have to pay them back. Naturally, this makes them popular, but it also means the vast majority of grant applicants are rejected. If you’re not successful in securing a grant, don’t despair! You’re in good company. Of course, you’ll still need funding to launch and grow your business. Two of the primary ways entrepreneurs launch and build their small businesses are personal loans and lines of credit. Here are some of the top lenders in each field, vetted by the fine folks at Merchant Maverick.
Personal Lenders For Business
Min. Credit Score
$2K – $25K
2 – 4 years
15.49% to 30%
$1K – $50K
3 or 5 years
8.16% â 27.99%
$2K – $35K
3 or 5 years
6.95% – 35.99% APR
$1K – $40K
3 or 5 years
5.32% – 30.99%
Lenders That Specialize In Lines Of Credit
$6K – $100K
Starts at 13.99%
$2K – $5M
$5K – $5M
1.50% per draw
21% – 65%
$1K – $100K
12% – 54%
Great business ideas can come from absolutely anybody. Unfortunately, startup capital is not so equitably distributed. Grant programs can help small business owners — particularly those who make an identifiable contribution to the grant-giving organization’s conception of the public good — with much-needed cash. Just be persistent, be undaunted by rejection letters, and be prepared to accept the strings that come attached to grant money should you be successful.
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Many veterans that have spent their lives protecting our nation and our freedom also own and operate small businesses. According to a Small Business Administration study, there are 2.4 million veteran-owned businesses in the U.S. These veteran business owners continue to give back to the nation by providing jobs to 5.8 million employees.
Like any other small business owners, veterans face financial hardships on the path to entrepreneurship. Emergency expenses, cash flow shortages, and expansion are just a few situations where a business might need extra capital. Veteran-owned businesses may face even more financial challenges â for example, if a reservist that also owns a small business is suddenly deployed, money, time, and resources may become scarce quickly. While your incoming revenue should cover most of your expenses in theory, there will always be times when the current cash flow situation just isn’t enough.
If youâre a veteran who runs your own business and are facing a financial challenge, there are options available to you. One of the best options? Grants for veteran-owned businesses. With a grant, you can receive money to fund startup costs, pay for the research and development of new products, or support your established business. Best of all, grants donât have to be repaid.
Whatâs the catch? Obtaining a grant is difficult for many business owners. You may not know where to even begin to find these grants. Once you find them, the application process can be confusing, and youâll find the competition extremely stiff. Not only do you have to be a veteran to qualify for these grants, but you may also have to meet additional requirements, including the location of your business, the industry youâre in, and your time in business. Grants are available through the federal government, nonprofit organizations, and even corporations.
However, just because itâs difficult to receive a grant doesnât mean itâs impossible. The first step is to understand what grants are available to you, learn the requirements, and move through the application process. In this article, weâll explore the best grant options available to veterans, how to find your own grants, and other financial options available for your business. Ready to move one step closer to getting the business funding you need? Letâs get started!
StreetShares Foundation Veteran Small Business Award
StreetShares is an online lender that specializes in lending to veterans. In addition to financing products like loans and lines of credit (which weâll discuss later in this post), small business grants are also available through the StreetShares Foundation.
As of 2018, the StreetShares Foundation awards grants to three winners. First place receives $15,000, second place receives $6,000, and third place wins $4,000.
The StreetShares Foundation Veteran Small Business Award is open to any military veteran, reserve or active duty member of the Armed Forces, or a qualifying spouse. Applicants must live in the U.S., be at least 21 years old, and own at least 50% of the business. All businesses must be legal entities and must have an impact on the veteran community to qualify. Award amounts and additional requirements may change from year to year.
To be eligible for the grant, all applicants must view educational content through StreetShares. Once qualifying content has been downloaded or viewed, the application is available. Applicants must write a summary of their business and submit a video. The Foundation will choose up to 10 finalists based on the business idea, how the award will be used, the history of the business, the product-market fit, and the social impact on the military and veteran community. Once the finalists are selected, their businesses will be presented to the public and put to a vote to determine the winners.
National Association For The Self-Employed Growth Grants
For businesses with smaller capital needs, the National Association for the Self-Employed Growth Grant provides small grants up to $4,000. Like other grants, the funds must be used for a specific purpose, such as purchasing equipment or hiring new employees.
Applications are reviewed quarterly and awards up to $4,000 are distributed monthly. To qualify, you must submit an application outlining your business need and providing details of how you will use the grant to fund this need.
You must also be a member of the NASE to qualify. Annual fees are $120, but veterans only have to pay $99 for an annual membership. Once youâve joined, you are eligible to apply, and your application will be reviewed based on the associationâs quarterly review schedule.
FedEx Small Business Grant Program
The FedEx Small Business Grant program has awarded over $500,000 in grants since its launch in 2013. In 2018, FedEx awarded $120,500 to 10 U.S.-based small businesses. The top prize for the contest is a $25,000 grant and $7,500 worth of FedEx Office services. Other winners bring home smaller grants and money to be used toward printing and businesses services.
To qualify, all businesses must be for-profit and based in the U.S. All small businesses must have fewer than 99 employees and must have a time in business of at least 6 months. Participants must fill out an application, write a short profile for their business, and upload four photos. Participants may also submit a 90-second video for voting, although this isnât required. Participants do not have to be military veterans to apply.
The annual program usually opens its entry period at the end of February, and interested small businesses can apply through the FedEx website.
USDA Rural Business Enterprise Grant Program
Through the United States Department of Agriculture, eligible small businesses can receive grants from $10,000 to $500,000. To qualify, you donât have to be in the agriculture industry, but your business must be located in an eligible rural area.
Other requirements include operating a business that has no more than 50 employees and less than $1 million in annual revenues. Grant proceeds can be used to purchase or develop commercial real estate, to cover expenses related to business planning, and for purchasing equipment.
All applicants can apply for the grant through their USDA Rural Development state office.
How To Find & Apply For VA Small Business Grants
If youâve missed the deadline for applying for the grants discussed in this article, donât qualify, or are looking for more grant opportunities, there are additional resources you can use to find your own grants.
To find federal grant opportunities, check out Grants.gov. This searchable database of federal grants is easy to use. Through this website, you can search and apply for grants, use their educational resources to learn more about grants, and even track your submissions. A mobile app is now available for Android and iPhone, making it easy for you to search for grants on the go.
Another great resource is the SCORE Association. This nonprofit agency has counselors and mentors located nationwide. These volunteers can not only point you toward national and local grants, but also provide free business advice for starting or building your business. You can participate in online workshops as well, and take advantage of the other free resources available to small business owners.
Try using resources at your local library to find small business grants. Many library branches offer specialized tools, including search engines and databases, that provide information on availableÂ small business grants for startups and established businesses in all industries.
Once youâve found grants, the next step is to begin the application process. Because grants are to be used for very specific purposes and are extremely competitive, take the time to adequately prepare.
Before getting started, make sure that you meet all requirements of the grants that interest you. Once you’re sure that you qualify for a startup grant, complete all required registrations. This may include registering on a website to fill out an application and/or applying for an Employer Identification Number or DUNS number.
The next steps vary based on the specific grant program. Some grant programs require you to create a short business profile or a short video giving information on your business and why you need a grant. Other grants have more extensive requirements, including writing a detailed business plan and in-depth summary of how you plan to use grant proceeds. Work through these steps very carefully. You donât want to overlook a minor detail that could render you ineligible to receive the grant.
Your grant proposal should sound professional and include details. Your proposal should be well-organized, and you should do your research on details such as potential costs. Include supporting documentation and citation to back up your claims as needed.
If youâre new to the application process, consider hiring a grant writer. If this simply isnât in your budget, there are free resources online that can help you through the process.
Other Financial Resources For Veteran-Owned Businesses
Whether you donât qualify for a grant program or have greater financial needs than a grant can cover, there are more financing options available for your business. The Small Business Administration and StreetShares stand out by offering low-cost loan options to veteran-owned businesses just like yours.
VA SBA Loans
SBA loans have developed a reputation among small business owners for their low interest rates and great terms. Rates and terms are comparable to bank and credit union loans. The best part, though, is that even if you donât qualify for traditional loan options, you may still receive an SBA loan. This is because these loans are backed by the government in amounts up to 85%, taking some of the risk away from the intermediary lender. What does this mean for you? Your small business can still be approved for an affordable loan, even if youâve been turned down by other lenders.
One of the most popular loan options is the SBA 7(a) program. Through this program, you can receive up to $5 million for nearly any business purpose. The SBA sets the interest rates at the prime rate plus a maximum markup of 4.75%, so these loans are extremely affordable.
For military veterans, the SBA Veterans Advantage program is available. Through this program, youâll receive the same high borrowing limits and low rates and terms of the 7(a) loan, with the added advantage of reduced guarantee fees.
To qualify for the SBA Veterans Advantage loan, your business must be a veteran-owned business that is considered a small business based on the SBAâs definition. You must demonstrate the ability to repay the loan and meet all criteria for receiving an SBA loan, including personal credit score requirements.
If youâre a military reservist or are in the National Guard, a deployment can throw your business off track. You shouldnât have to worry about a pile of expenses that pose a threat to your business when you go on active duty. Luckily, the SBA has a financial solution.
The Military Reservist Economic Injury Disaster Loan Program provides loans up to $2 million for military reservists or National Guard members during or immediately following deployment. Under this program, you can receive a loan with interest rates set at 4% and repayment terms up to 30 years. Loan proceeds can be used to cover operating costs but canât be used to refinance debt, expand a business, or cover lost income or profits.
You may also qualify for other SBA loan options not specific to veterans. For example, if you need capital for your startup costs, you can apply for SBA microloans up to $50,000 through an SBA-approved nonprofit lender. Interested in learning more about SBA loans? Check out our post on SBA loans for veterans.
Time in business: 2 years
Business revenue: $100,000 per year
Personal credit score: 620
Borrower requirements (click to expand)
We already touched on StreetShares earlier when discussing grants. However, if you missed the deadline to apply, donât want to go through the hassle of applying for the program, or donât qualify, StreetShares has traditional financing options for your business.
StreetShares was founded by veterans and was originally targeted only toward veterans. Today, however, any qualifying business owner can apply for StreetShares financing. There are some special concessions made for veteran-owned businesses, which weâll discuss in detail a bit later.
You can apply for a StreetShares installment loan of up to $250,000 to be repaid over 3 to 36 months. The interest rates for these loans are around 6% to 14%.
If a flexible line of credit better fits your financial needs, StreetShares offers those, too. You can apply for a line of credit of up to $250,000 with repayment terms of 3 to 36 months. Interest rates are around 6% to 14% for a StreetShares line of credit.
To qualify for a loan or line of credit, you must be in business for at least 2 years. However, some businesses may qualify with a time in business as short as 6 months. You must also have a minimum personal credit score of 620. However, if youâre a veteran, this score requirement is lowered to 600. You must also have anÂ annual business revenue of $100,000.
If you have federal, state, or commercial contracts, you could also qualify for contract financing. You can receive up to 90% of your contract in advance by paying a factor fee. You can apply for contract financing in addition to an installment loan or line of credit.
Grants for a veteran-owned small business are difficult to receive, but you can improve your odds by doing your research and taking your time throughout the application process. A grant is a great way to fund your business, and you donât have to worry about repaying funds.
Even if you donât qualify for grants, your veteran-owned business can take advantage of other affordable financing options to start or expand your business. Consider SBA loans or our picks for small business loans for veterans to give your business the financial boost it needs to be successful.
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Modern American capitalism is an ironic tableau of cruel contradictions. While cheap consumer goods are more accessible than ever and the price of large high-resolution TVs keeps going down, the things actually required for human beings to live and thrive — housing, health care, education, retirement security, etc — become ever less accessible to the exploited, over-policed masses by the day. This reality has all the more salience to minority groups whose access to these necessities was precarious at best to begin with.
Startup capital is another resource that has been made scarce to marginalized communities. 10 years after the financial crisis of 2008, banks still aren’t lending to those who could do the most good with the cash (never mind that all of us, both marginalized and privileged, were made to bail out these same banks after they ruined the world). For most minority small business owners, the prospect of getting free money to cover business expenses is going to sound rather far-fetched.
That’s where business grants come in. Small business grants are not easy to obtain, but they do exist and can be an invaluable source of funding for those who obtain them. We decided to compile a list of the best grants and grant-related resources for minority-owned businesses.
But first, here’s more information on getting funding for your small business:
Do I Qualify For A Startup Grant?
How To Find A Startup Grant
The Best Business Grants For Women
The Best Small Business Loans For Minorities With Bad Credit
Minority Business Development Agency
AnÂ agency of the U.S. Department of Commerce, the purpose of the Minority Business Development Agency, or MBDA, is to help connect minority business owners to federal contracts and other financial resources. The agency also periodically awards grants to minority-owned companies for specific purposes. In November, the federal government announced that the MBDA had awardedÂ over $13 million in grants to 35 projects across the country.
From helping youÂ find grants and loans to providing marketing and legal assistance, the MBDA’s physical business centers are set up to provide a range of assistance to minority business owners and entrepreneurs. Here’s a searchable directory of these MBDA businessÂ centers.
Grants.gov doesn’t originate grants; rather, it’s a searchable databaseÂ of every grant program from across all 26 grant-making agencies of the federal government. It’s a valuable resource, though the website is prettyÂ clunky.
In order to apply for federal grants, you must do the following:
Get a DUNS number from Dun & Bradstreet
Register to do business with the federal government through its System Award ManagementÂ website
Create an account at Grants.gov
National Association for the Self-Employed
The NASE is a nonprofit trade association that gives grants and provides educational resources for small businesses and entrepreneurs. TheirÂ Growth Grants ProgramÂ lets small business owners apply for grant financing for a particular small business need.
These grants are worth up to $4,000 each, so while you won’t hit the funding motherlode with the NASE, it’s a great resource for minority business owners with a specific, defined funding need. You’ll need to join the NASE to apply for a grant, and you’ll need to explain in detail how you’ll use the funds and how this funding will bolster your business operations.
FedEx Small Business Grant Contest
The FedEx Small Business Grant Contest is a nationwide competition held annually to award grants in the form of cash and prizes (such as credits for FedEx services) to small business owners and entrepreneurs. The amount awarded to contest winners and the number of grant recipients varies year-to-year. The details of the 2019 competition have yet to be unveiled, but these specifics will be unveiled when the 2019 competition is announced early in the new year.
For reference, here is a series of features on the winners of the 2018Â Grant Contest winners.
Dare To Dream Grant Program
The Eugene ApplebaumÂ Dare to Dream grant program is a prominent program based at the University of Michigan offeringÂ business development seminars and $500-$5,000 in grants to individuals and/or student teams. Prospective entrepreneurs in the upper midwest, take note!
USDA Rural Business Development Grant
For minorities in rural areas, this grant, issued by theÂ United States Department of Agriculture, is an attractive prospect. In the words of the USDA:
This program is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas which will employ 50 or fewer new employees and has less than $1 million in gross revenue.
Program applications vary by state, so you’ll need to find the specifics of what’s on offer in your state through the USDA’s RBDG website.
Native American Business Development Institute (NABDI) Grant
This grant program is funded by the U.S. Department of Indian Affairs and is intended to support Native American and Alaskan Native business owners. Currently, they don’t have a great deal of information posted on the grants being offered, but you can always contact theÂ Office of Indian Energy and Economic Development to learn how the program stands to benefit your business.
Office of Minority Health Grant Programs
A division of theÂ Department of Health and Human Services, the Office of Minority Health (OMH) offers grants to businesses whose mission is to eliminate health disparities among racial and ethnic minority populations. Keep an eye on the OMH website to learn about grant opportunities when they are announced.
How To Find & Apply For Small Business Grants For Minorities
Finding the right grant program, applying for it, and actually getting the grant in question can be a daunting prospect. That’s why it may be a good idea to simultaneously look for alternate sources of funding, such as personal loans or lines of credit. We recommend the following reputable funder to minorities who are looking for business financing:
Personal Lenders For Business
Min. Credit Score
$2K – $25K
2 – 4 years
15.49% to 30%
$1K – $50K
3 or 5 years
8.16% â 27.99%
$2K – $35K
3 or 5 years
6.95% – 35.99% APR
$1K – $40K
3 or 5 years
5.32% – 30.99%
Lenders That Specialize In Lines Of Credit
$6K – $100K
Starts at 13.99%
$2K – $5M
$5K – $5M
1.50% per draw
21% – 65%
$1K – $100K
12% – 54%
Remember that unlike with loans and the like, the money that comes with grant programs has strings attached. It must be used in precisely the way specified by the grant giver. That’s why it pays to know the details of the grant you’re applying for, as there’s no reason to apply for grants that would disburse money for a funding need you don’t even have.
I should reiterate that in order to qualify for any federal grants, you need to register at sam.gov. Unfortunately, the registration process isn’t as straightforward as it should be, as the government agencies in question seem to be in the middle of shifting their small business assistance materials between agencies and websites. As things stand, sam.gov lays out the steps required to register your small business here.
One organization that can get you pointed in the right direction in your quest for business funding is SCORE. It’s a partner of the Small Business Administration (SBA) and provides mentoring services to small business owners and entrepreneurs from over 300 chapters across the country. They also provide online webinars and business courses.
What To Do Before Applying For A Grant
Define your exact funding need: be ready to define the precise objectives a grant would help you meet
Create a detailed business plan
Gather and assemble all the business records you can from at least the last three years
Have your plan and records reviewed by experts, whether they be SCORE mentors or others with experience in guiding business owners through the grant-hunting process
For a large grant, consider hiring a professional grant writer if you can
Entrepreneurial talent can be found in every community across this land. Sadly, social and structural barriers to equality persist. Small business grants are but one means by which minority small business owners can get some ever-elusive funding. For other such means, check out our article on the various types ofÂ alternative financing available for small businesses, or look into one or more of the alternative funders below:
Req. Time in Business
Min. Credit Score
$5K – $500K
13 – 52 weeks
x1.029 – x1.1872
$5K â $300K
6, 9, 12, 15, or 18 months
x1.15 â x1.31
$5K – $500K
3 – 36 months
x1.003 – x1.04/mo
$2K – $5M
As low as 2%
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