We always love being in your shoes. Are you in one of these categories: Have an idea you want to start but do not have the money? Have a certain amount but it is not enough to start your proposed business? Started to some point but need money to scale? Suffered a certain loss from your business and want to scale? However it may be, whatever it may by, we have provided 8 assured ways of getting funds although it implies more to startup companies. Do enjoy your read. . .
The best way to start your business is by taking a bold action to start. At this point, you have a business idea, it is not enough to let lack of funds or the money for the business stop you. So, what’s next;
1. Family and friends;
This, could be worth a start. Reach out to your family members, relatives, close associates as well as social group, explain to them what you need the money for, appeal for their support.
2. Investments from Angel investors;
Here, we advice or customers to stay ramenly profitable. If you’ve not got funds at all from anywhere to fund your start up, but you’ve got an idea, there is still some hope. Angel investors has got your back.
They are companies as well as individuals who are ready to make direct investment in start-ups and micro firms. They have the right to supervise the company’s management practices. This is an exchange for their investment in the start- up company.
Grants are money given by the Government or an Organisation to a person or a group of persons for a particular purpose and in most cases, they are not refundable.
Some example of grant giving organisations are; Minority Business Development Agency, National Association for the Self Employed [NASE], Tony Elumelu Foundation and a host of others.
The criteria for most grants normally require a business plan and your ability to explain what you want to do with the money. Grants are very good funding opportunities. It is worth of note that most grantors monitor the business, while some don’t.
4. Venture Capitals;
This in most cases tend to favour tech-driven business start ups are deemed to have high growth potentials.
Venture capitalist take risk to fund start ups to see that succeed and gain grounds in its sector. This is preferable for start-ups that have not reached the criteria of securing a bank loan. It is worth of note that venture capitals could be risky on the part of the venture capitalist since the business is just starting.
5. Crowdfunding/ Equity crowdfunding;
This is a fundraising system where investors fund start-up companies on an exchange for equity. The individual gets to present or pitch their business ideas to them [the board group of investors] who are willing to fund their ideas and after some considerations, they get funded.
Crowdfunding could also be done with support letters or cards, where you go from person to person who you don’t know so well. You would have to explain the idea and why you need funds to the various individuals you’d meet and they would support you with little amount. This approach uses a number of persons to get little funds which when compiled together it would be worth a capital.
Loans are borrowed money for a particular purpose from banks, individuals or government firms. To access the loan from commercial banks or the Central Bank you would have to present your business plan as well as a certificate of a business-related course [not necessarily from the University but short courses from business consulting firms] to banks. In loans, you can easily access large capitals.
It worth of note for clarity, that there are some loans from commercial banks available for businesses that don’t require a collateral. Loans for businesses can be easily gotten from Development banks too.
7. Sourcing for investors and partners:
At Starthub.ng, we also encourage our customers to get a business proposal to major firms around the city to buy into the vision of the startup, invest or support the idea. A business proposal is a document that aims to convince prospective clients, partners and investors to see a reason why they should buy from your company, require your service, invest in your company, support with finances, as well as run a major partnership scheme with your company.
8. Be an effective communicator:
There are some cases where persons or companies lossed major contracts, funding and business deals because they were not aable to communicate or pass the message of what they wanted to pass effectively.
Always remember to get advisors for your small business, consultants, accountants, legal practitioners, suppliers, staffs, customers and all the stakeholders involved. Keep them abreast with informations. We do not advise anyone to seek funds from their customers.
A quick advise is don’t get funds to pay off your first month salary or to settle bills, use it to invest in the company then use the profits to run the business with the aid of your business counsellor.