The lack of capital can be said to be an eternal obstacle that has on certain occasions grounded the grandest business ideas. Successful entrepreneurs with a ‘never-say-never spirit’ however know how to deal with this stubborn problem and build business empires that not only survives but thrives through time. Now, we shall be sharing 10 tips you can use in raising capital for your business:
1. Seek the help of family and friends: Meeting your loved ones for contributions and/or loans towards starting up your business is something you should not wave aside. They will be more open to help and also not be hard on you as it regards interest rate.
2. Use your assets: You can use those valuable items – think of those jewelry pieces, cars, houses and what have you – of yours to raise capital be it through using them as collateral or selling them.
3. Network/partner with those who have got the cash: If you’ve got an idea that sells well, it becomes very easy for you to get a partnership or network that brings the funds to run the business in.
4. Try crowdfunding: Crowdfunding is fast becoming a tremendous way of raising funds in this age. However, you need to create something of value that people believe in, and then you can be sure that the donations will flood in. You can even back up your request [for donation] with the tools you will be needing for your trade. Let’s assume you’re a gardener; putting up the list of lawn mowers and other gardening tools you will like to have [along with the quotation], could help to further convince people about your intention. Moreover, it’s okay to talk about your story.
5. Woo an angel investor: A well-thought out feasibility plan should help you attract the interest of an angel investor who sees possibility of growth in your venture. There are a good number of them you can find through internet search but you must be ready to present your business in an appealing way.
6. Consider venture capital: If you intend to take your business up another notch, you should consider venture capitals that are looking out for good opportunities to invest cash in. You must however be mindful of the fact that most venture capitals ascribe to recoup their investment within a period of 3-5 years.
7. Enter Entrepreneurial competition with a win-win mindset: There are various contests that are set up to encourage entrepreneurs in their exploits. You can enter any of these competitions and make sure you go in to WOW the panel [of judges] with your business ideas. By so doing, you will stand a good chance of going home with the prize money.
8. Do not neglect government programs: Different governments across the world have come up with several initiatives to provide startups with substantial amount of capital to get on with their businesses. You can look out for the one in place around you and send through your application.
9. Presale your products and/services: Provided you’ve got a solution to their problem(s), you can reach out to targeted customers to ascertain their interest in what you’re offering. Upon them showing positive interest, you can ‘pull the trigger’ and ask them to make payment with you promising to provide the product/service at a specific time in the nearest future. You can finance your business with the funds generated.
10. Apply for bank loans: Bank loans may not be easy in many instances but one cannot still rule it out. With your collateral ready, you can take a step towards approaching your bank for a business loan. …