OR How to Raise Money for a Small Business Idea
A business Capital is the money or required amount of money needed to startup or fund your business idea(s). Raising capital for your business is one of the most difficult things for startups to do. Most business fail due to inability to raise capital early. As a matter of fact, I bet most business dreams die as a result of lack of capital and also lack of knowledge on how to properly raise the required capital. The question how to raise capital for my business would be duly answered in the post. Below are a list of ways you can raise capital for your business;
1) Savings: Your savings can be used to fund your business project at the onset. Set aside a specific amount of money daily or weekly or monthly and invest it in your business.
2) Get A Day Job: A day or salaried job can also be an excellent means of raising capital for your business. Earnings from your day job should be kept for reinvestment into your business.
3) Ask From Friends And Family: Like Facebook founder Mark Zuckerberg did, you can seek financial aid from your friends and close family. They can help you with a small amount to support what you already have for your business.
4) Get A Bank loan: There are development/micro-finance banks that support startups. Write a meticulous business plan and pitch it to banks in and around your locality. Make sure your business plan is well written and long term returns well projected.
5) Apply For A Government Grant: You can apply for government grants for funding startups around your area. This grants are usually done from time to time, be on the lookout for one when its available and apply.
6) Try Co-Operative societies: Co-operative societies are a group of people who come together and make daily, weekly or monthly contributions. One person gets to take all the contributions made at a particular time. Joining a cooperative society is another way of raising capital. This must be with people you trust.
7) Sell It All: If you have assets or luxury products lying around the house or even if in use, sell them to raise some money. Selling extra properties around the house will add some money to your account.
8) Sell Forward: Selling forward means asking for client or customer loan. This means requesting your customers to pay in advance for a product or service. Not having enough money to start up? Plead with your clients to Pay you ahead for a product or service which they want, the money can then be used to procure the product and you keep the profit. Keep doing this till there is enough money.
9) Create a Partnership: Another way to raise some capital for a business is creating a partnership with someone who has money, join forces or partner with a friend or colleague who has the finance to support the business.
10) Pitch to an Angel Investor: In the business world, an angel investor is someone willing to invest money in your business and own a part of it. This people are high net worth and are professionals. Pitch your business plan to an angel investor and get the funds you need.
11) Enter competitions: From time to time, there are entrepreneurship or SME competitions which hold around the world. The winner gets funding or Money, Engage in these competitions as many as possible to raise cash.
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12) Crowd Funding: This means raising money from a crowd. The internet made this a very popular form of raising money. Set up a go fund me account and explain the benefits of your business, and appeal to people to donate to the business.
13) Take only Cash as Birthday/Anniversary gift: Your anniversary coming up soon? Take advantage and appeal to friends and well wishers to only give you money as gift. This is an informal way of raising capital for your business.
14) Trade Your Skills For Money: Your services may be of use to some people. Offer your services in exchange for money.
15) Rent out Additional space: If you live in a big house if even a small one, you can always share the cost of living and maintenance with someone. Letting out some space would save cost and earn you some money.
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