6 practical ways to raise capital to start your business – Frederick Achom
Being your own boss is one of the best experiences and a dream for many people. How do you earn your living? Are you employed or self-employed? I know entrepreneurship is a subject thought in school and perhaps you have the necessary skills, but we wish to help you raise capital to apply the skills.
We must mention that in case you lack skills, keep visiting our site or enroll a course. Its common knowledge that many people have a desire to start their own business, but are yet to raise sufficient capital. Others have explored credit services which are also hard to find inasmuch as it not being the best idea, debt from the onset of a business is highly discouraged. How then can you start your dream business, if you lack capital? This is where we come in. Despite the fact that we don’t have dollars to deposit to your account, you have every reason to smile because we have listed top 6 practices that will help you raise enough capital for your business startup.
- Automate your savings if you are employed
Financial discipline is one of the greatest setbacks for many people and a major inhibitor to making savings. There are other ways you can use to deal with yourself regarding this issue, but automating savings is the smartest of all. You can achieve it by approaching your bank or apply the use of mobile banking applications which are designed to set aside a percentage of your income without you consciously initiating the transaction. This concept leaves you out in making a decision for saving, you are your own foe.
- Create and strictly follow your budget
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Begin by distinguishing needs and wants. Eliminate unnecessary expenses, reduce luxury and make bulk purchases to benefit from economies of scale. Once these unwanted expenses have been eliminated from your budget, the surplus account will go to savings. Inform your family on the business objective for them to appreciate reasons to sacrifice hence they will help you save. There are applications that are designed to help you properly manage your budget to avoid financial indiscipline.
- Look for a part time job
Convert your time to money by engaging in part time employment during evenings and weekends. After your formal employment, you still have a few hours to bed-time, this time can be utilized to earn capital. Instead of enjoying leisure during weekends and evenings, you can sacrifice this time to work to earn extra income which can be saved for capital. In addition, you can begin small on part-time basis while still working to raise more and grow your business. Alternatively, once you start a fulltime business, engage on a part-time job to raise more capital for business growth.
- Explore crowdfunding
This method has increasingly become popular lately. Update your business goals, expected profit margin and amount of capital needed on a crowdfunding platform, then wait for money from people who will like your idea. In addition to financing, this option will also market your product, put off business brokers and attract venture capital investment. One thing you must keep in mind is that crowdfunding is highly competitive, therefore you must bring forward a highly thought business plan and communicate it effectively.
- Seek Angel investors
These are individuals or a group of individuals with a keen eye on business startups. The good thing with this people is that they have surplus money and are always willing to invest it in viable business startups. Some of the major global companies were assisted by such individuals. They come with other benefits, mentoring and advice in addition to capital. However, they invest lesser amounts compared to venture capitalists.
- Approach your local bank for a loan
Depending on the nature of your business, a credit facility can be the best option. For instance, if you’re doing a supply business, you can approach a bank with an LPO (Local purchase Order) for funding. Banks have a variety of loan products you can consider. We know that not everyone can access mainstream banking facilities, but micro-finances have minimum requirements hence can help you. If your income is from salary, take a salary advance or unsecured loan to start your business.
Conclusion
If you really want to start your own enterprise and grow fast, financial discipline is what you need to cultivate first. We know that everyone is uniquely talented, but you can’t lack a preferred method of raising capital from the list chronicled above. It’s true that anybody has a capacity to do business, so long as he or she has a desire and wiliness to learn regardless of financial status. Keep visiting our website for more insights. We believe that you are a step away from achieving your dream business and we wish you well.
By Freddie Achom
