Turning your dreams into reality
Raising capital to start a business or growing an existing
business is one of the challenges entrepreneur faces.
Whether your business has established or you are just starting
up does not really matter when it comes to needing money for business. It’s
either you need money to startup the business, to expand, for one thing or the
other. There is always a time when as an entrepreneur, you need to raise some
money for your business. So, if you have an idea that you are planning to take
to the next level. Here are ways to get funding for your business:
GETTING EMPLOYED
Getting
employed help you in not only gathering your finances but also in relating to
people. When you get employed, you learn some of the relationships that exists
between employers and employees. Work part time and save up your earnings until
you have enough money to start the business. Or, as an alternative, work part-
or full-time in your own business and take a part-time job to supplement the
income from your new business.
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ENTREPRENEURSHIP
PROGRAMS
Another great way to fund your business is to apply for business
funding competitions, business and entrepreneur reality show. There are many
entrepreneurship programs you can register for here in Nigeria that help
finance promising business ideas.
PERSONAL SAVINGS
Personal Savings is one of the most common sources of startups.
It is very good to start your business with your little personal savings. It
encourages investors to invest in your business. It gives you an edge and helps
you answer the question ‘what have you achieved so far?’ when pitching to an
investor.
PARTNERSHIP
This is another way of raising capital for your business. You
can be the boss of your business and the founder of your business but you don’t
necessarily have to start your business alone. You don’t have to work yourself
to death or go for loans that will swallow up your business. If you have a
business that needs #5,000,000 to kick off, you can talk to two or three
friends that you know of who can share your dream and you can all put up the
money to startup your business together.
SALES OF BELONGINGS
You can sell some of your belongings to start your business. If
you have a business idea and you don’t have the money to start the business,
sell some of your belongings…sort out some of your needs and wants and do some
alternative forgo…
Read our stories
The diary of Chic-chic (coming soon)
CROWD FUNDING
This is the act or practice of seeking for funds for a project,
business idea or venture by raising small – small amount from a large number of
people. This allows you to solicit for funds from a lot of people you know to
fund your business.
BANK LOAN
Starting a business with loan is not a bad idea but starting
with bank loan is a risk one needs to be careful about. You need to put a lot
of things into consideration like the interest rate, collateral, strength of
the business you are planning to start, etc. you need to be able to provide
reasonable answers to these questions:
1. What is the
security on your present job?
2. Can you cope
with the interest rate from bank?
3. No business yields proceeds immediately
so are you sure the load won’t be too much on your salary (if you are currently
employed)?
4. Running cost: This is one vital part of
business most people neglect. The money you pump into the business alone is at
times more than your initial capital cause you keep pumping it in till the
business stabilizes.
In all, you have to consider the loan carefully as collecting
the money is sweet but pay back is never easy.
MICRO FINANCE BANKS
The rules that applies to bank loan also apply to micro finance
loan. Think carefully, make you findings, analysis and assumptions carefully
and be realistic about them.
STARTING
AN ONLINE BUSINESS
There are lots of businesses
that you can start online today that will fetch you money. All you have to do
is sit, think of what you can do, plan and take action.
Above all, you need to have a
good business plan. There are many consultants that can help you get a good
business plan but you can also have your own business plan without paying
anyone to do it for you.
Writing a good business plan…
Did you read the first part of
this article? Here it is!
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