Business can be very difficult to start without adequate funding. Do you have a new business Idea that you really want to start and you do not have enough funds to use for your start up capital? Worry no more, because the in this article we will discuss about the several ways you can generate money to finance your new business idea
.Many young entrepreneurs today are been faced with this problem of not having enough capital to fund their businesses and because of this single problem a lot of them give up on their businesses and go ahead to look for a job.
Several years ago the problem of not having enough capital to start up a new business was almost unsolvable, but recent developments and technology has made it easier for broke entrepreneurs today to lay their hands on the initial capital they need for their businesses.
GETTING READY FOR BUSINESS
True you might have a very good business idea, but that is not all it takes to ascertain your readiness for business. There are several other things you should consider and take note of if you must be successful in business.
HOW MUCH DO YOU REALLY NEED FOR YOUR BUSINESS?
This question may sound very simple to you. This is because you think that you have it all planned in your head. But truth be told, not many entrepreneurs can really answer this single question.
Before you seek for ways to fund your business idea, you must be well aware and also very sure of the exact amount you need for to establish and carry out your business endeavors. This is to say that you must sit down and do a thorough business financial plan.
Once you have done this thorough business financial planning, then you can truly answer the question.
Getting the needed funds for your business is not very simple as planning for the business. But the truth is that if you are determined, you can achieve your desired goal. These are some steps you can take in order to generate the actual money you need to finance your business idea.
This is the most simple and least complicated way to get funds to finance your business idea. Here you do not need to worry about the risks of seeking for loans or help from other people. This procedure is best if you are scared of loans and perhaps do not have some rich uncle or relative to run to for financial help.
Funding your business idea yourself is the best way to get funds for your business idea. This is because it has little or no risks involved in it.
- PERSONAL SAVING
One of the easiest ways to fund your business idea yourself is to get money from your personal savings. If you have some money in your savings account, which would be enough to finance your business, you should not worry about how to get funds to finance your business.
Before you take money from your savings you must be sure that the business would yield enough profit for you to cover up your expenses. It is advicable not to empty your account to fund your business.
It would be wise to leave some money for miscellaneous in order that you do not get stranded in your quest for money to run your day to day activities and thereby tamper with your business capital.
- WORK FOR YOUR CAPITAL
If you are not privileged enough to have a huge sum of money lying around in your savings account, your best option in financing your business yourself is to earn some money in order to get your desired capital.
You should go out there and look for suitable jobs that could pay you for your services and then you would save your salaries to use it as your capital.
You could work for a specific time frame that would allow you to come up with the money you need and once you have raised the money, you resign and use the money to invest into your business idea.
Working for your capital can be split in two ways which include:
- FULL TIME JOB
Here you are employed into a full time job where you have to wait till the duration you have set in order to come up with the desired amount needed to start up your business.
- SIDE HUSTLE
Another way you can earn your way into getting your capital is to look for a side hustle that you can start in order to generate money for your capital. The good thing about getting a side hustle is that you can also be working and also be running your business.
SELL YOUR BELONGINGS
If working for your capital does not go quite well with you, you could as well consider selling some liabilities that you do not really need.
This is not the best of options though, but it is a means you can consider if you are truly desperate to come up with your desired capital to start your business.
If you have an old vehicle, an electronic gadget that is not that important to you or perhaps you have a landed property somewhere, you could sell these things and start your business.
Selling your properties is a good way to generate money for your business but you must be careful not to sell some important properties that you desperately need. It is advisable to sell only properties that you can do away with in order not to cause frustrations in the long run
BECOME A THRIFT SAVER
Thrift savings is a system of daily savings practice operated by an individual for small business owners. Here, you have to receive money from business owners on a daily basis to save for them and to relinquish the money to them after some specified period of time.
If you are so sure of the business idea you want to go into, you can invest this money you received from these business persons into your business and when you make your profit, you can give them back their money while you have made gains with them.
This type of practice is been done by banks. They receive your money you save in their banks and use them for investments snd make gains out of it.You must first be a trustable person in your area before these business men in your area can trust you with their money.
This procedure is a very risky one and you must be sure that your business must yield your targeted amount at the specific time that it is expected to do so in order to avoid being arrested.
Business is all about risks, but it is wise to take only calculated risks.With these procedures afore mentioned, you can generate your desired money for your capital without seeking help from any body.
BORROW YOUR INITIAL CAPITAL
If you are not very comfortable with the idea of raising your capital yourself, you can go ahead and borrow the necessary money needed to find your business.
Many entrepreneurs today have made it big in their businesses through borrowing to finance their businesses and luckily for you, there are a lot of companies today that are desperately looking for borrowers and are ready to lend you some money once you meet up with their requirements.
Most of these companies do not require a collateral before they can lend you your desired money.
WHERE CAN I BORROW?
- YOUR BANK
But in some cases, they may not request a collateral. You should walk to the nearest bank in your area and follow their procedures to get a loan for your business
- MICRO FINANCE BANKS
The good thing about micro finance banks is that they are quicker to give out loans than the conventional banks and their payment methods and interest rates are usually more alluring than that of the normal banks
- LOAN APPS
Before you go out there to seek for loans, you must be sure of the risks involved in borrowing and take responsibilities for them
SEEK INVESTORS AND PARTNERS
The good thing about this is that the risks of the business is shared and you have other people to help out when things get tough.