As we all know, the most glaring thing in starting and running a business perfectly well is Capital. Once there’s limited or no capital, an entrepreneur might get frustrated and end up not venturing into their intended Business or may give up sooner than later. It’s been a long time I have been thinking about this, today I finally decided to write about it. By the way, do you know the 7 ways to source capital for a business startup?
1. PERSONAL SAVINGS
Almost 80% of people find it difficult to save any money that comes their way no matter how little it may look. Note that for any entrepreneur who has a set target, he or she must learn to have a treasury account where he or she saves no matter the amount so as to meet up with the said plans in starting up the business. Never forget that part of any money you get as a gift or as the one you earn from a work is part of yours to save.
2. YOUR ASSETS
So many people feel and think it’s taboo to sell their personal assets but the truth is that, if the purpose of selling it is worth the business you’re venturing into, then it’s a welcome habit by me. Don’t forget that, the assets you sell today can replicate themselves when the said business comes true.
3. FROM RELATIONS AND FRIENDS
The most common source of capital to start up a business is from Family and Friends. if you have friends and family members who are well to do, you can share your vision and mission with them with the anticipation of securing financial aid from them. They might end up becoming the backbone of the business but that doesn’t mean they are the owners of the business. Their duty is just to give you u financial aid and you both can settle on how the return will be.
4. FROM NON GOVERNMENTAL AGENCIES
Agencies like ECOWAS gives assistance to entrepreneurs whose Business ideas will be of great benefits not just to the Business owner alone but to the world at large. So as entrepreneurs, you can source Capital from NGOs only if your ideas are well documented and presented. This is one of the great ways of gaining financial aid in starting your dream Business.
5. FROM COOPERATIVE SOCIETIES
This is another good way of raising funds in starting your business. This process involves a collection of members who tends to save money in a treasury bank for the purpose of her members getting loans. As an entrepreneur, seeking funds in starting a business from cooperative societies, the entrepreneur must apply for o loan from the society with the hope of paying it back at a stipulated time. So many have gained financial help in starting their business through this process.
6. FROM DAILY, WEEKLY OR MONTHLY CONTRIBUTION
So many people today we’re able to raise funds in starting their business through daily, weekly, or monthly contributions. In this aspect, People come together to form a team of members and they agree on a fixed amount to be paid at intervals bases on the agreement and then this money will be given to a particular individual or two as the case may be or as agreed by the people involved. As a result of this, one can able to raise funds in starting his or her business comfortably. Remember, this must be done among trusted People.
7. FROM BANKS
Almost 99% of Businesses need funds from banks so as to help them stand. Banks are a good source of raising funds. Entrepreneurs can seek financial help from banks through loans so as to help them build and grow their businesses. Although, most banks like BANK OF INDUSTRY and CENTRAL Banks give out loans to small-scale and Large scale Business owners with a longer duration of 2 or 3 years in paying back. Entrepreneurs can hijack these Opportunities and decide to partake in them. Don’t forget that, the bank loan is a great source of funds in starting your business.
Do you know of any other sources?Do you know of anyone in need of Capital in starting up a business? Then do well to share this piece with them as it will help them make good choices on how to start up their business.Thanks