To gather the business ideas could require some days of brainstorming and sometimes, those ideas just drop into your heart like a storm and you are sure it’s the idea you need to be the great entrepreneur you have always dreamt to be. However, after getting those ideas, what happen next? Where do I get the funds to get started? How do I raise the capital? Those are the questions that would arise next, except you are ‘OBO’ – you are from a wealthy background.
The stumbling block to every beautiful business idea is capital and the dilemma of how to source for it. So, I got your back here, let dutifully go through the possible options you can explore.
- Personal Savings: Many business experts will advise any willingly entrepreneur to raise his/her capital through personal savings. Yes, I know you will want to ask; how can I save? The first thing to ask you is; Am I ready to be my own boss? If yes, then be ready to save even from that seemingly small salary you are getting now. You can start planning on how to start and grow your business, write out plans and during that period, save up to get it started. The size of capital should depend on the type of business you intend to venture into, small size business would require small capital, and so, you do not need to break the bank to get started. Also, most businesses start small but expand as times goes by.
- Grants from Family and Friends: In case, your personal savings couldn’t do much, the next available option to explore is your inner circle; your family and friends. They are set of people that trust in you, so, you need to make them see the ‘sense’ in your business idea. You should be able to get grants from them, or loans with zero-interest rate to start your business.
- Loans from Micro–Finance Banks: Micro finance banks are friends to budding entrepreneurs. They provide micro loans to poor entrepreneurs or small entrepreneurs lacking capital and access to larger banking institutions. In Nigeria, there are different banks like; Accion Micro finance bank, AB Micro finance bank, Lapo Micro finance bank and many more that give small loans to entrepreneurs. The requirements are not throat cutting, some of the process you will go through are; get a guarantor, submission of passports and filling of forms. After all these within days, you can get your funds and your business is alive! But, you must find a way to back the money, be credible.
- Partnership: Another option that could be considered by any budding entrepreneur is partnership. Although, this requires a legal process to ensure that the rights of all partners are legally backed to avoid ‘stories that touched the heart’. If you can find someone that has idle cash balances, approach such person with your business idea and form a partnership form of business. Some of the advantages of partnership business organisation that is a disadvantage to sole proprietors are the existences of continuity and more innovation. However, ensure there is a legal protection and backing before starting the partnership business.
- Search for Investors: Another available option is to search for investors, I must confess, this is not easy, neither is it a quick way to source funds, however, it can be the biggest means to source for funds. You need to look for that one business-minded individual that thinks your idea is awesome and would take the market by a storm. To raise funds via this means you need to get a good business plan to represent your business idea perfectly.
The headaches most entrepreneurs have are how to bring the business idea into reality and how to raise funds for the business. No business idea can become a reality without the capital, after drafting the plans; it is the next important resource. So, with the above options, you should get that idea started and make sure you thank me whenever I cross your path; I hope to get a discount when I need your service and/or products. Enjoy the business ride!
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