Creative Ways To Raise Business Capital

[kayode10]

It is very obvious that raising cash for your business idea is one of the hardest job as an entrepreneur. I am going to show you simple ways you can raise capital for your business idea.

Partner Up
You can simply look for a partner with cash who is looking for a business idea. You can pitch your business idea to this partner and you guys will pull resources together to form a business.

Angel Investors
Angel investors are group of people who are looking for outstanding business idea to invest their cash. They don't offer interest rate on the loan they give you. They are after making some profit with the business funding. You can see angel investor through venture capitalist.

Win A Business Reality Show
They are business reality shows and competitions out there that offers a huge capital for the winner.

You can obtain a form to take part in this competition. You are going to receive a lot of cash to fund your business idea if emerge mad as a winner.

Trade Your Assets
If you are some kind of assets at hand you can simply trade them of capital for your business idea. I know someone who sold his precious metals just to raise capital for his business idea.

Crowdfunding
Crowdfunding is another creative ways to raise capital for your business idea. You can see play open account at go fund me and create a campaign.

 

[Kingsley]

Yes there are several ways but the common ones people are used to is the one of loans. People access loans either from commercial banks and microfinance banks. Although it depend on the type of project one is planning to embark on and the size of the business matters alot, that is what will determine the type of bank to go, if it will be specialize bank, merchant, mortgage or agricultural bank.. it all depemds on the type of business. And if it a very small business one can still use loan applications. Then one can also get financial assistance from friends and family and also from going into partnerships with other potential investors.

 

[eldavis]

Winning business reality shows is a good one but not that easy to win here in my country, this is because most of these shows have been rigged to suit some selective persons, hence does who really need it do not win.

 

[kayode10]

@Kingsley I'm sure you are from the same country as me. Most people usually advise an enterpreneur to approach financial institution in order to take loan to start up their business idea.

You are now I know that it is not easy to secure a loan in Nigeria from any of the financial institution even the microfinance ones.

Before you can secure a substantial loan from the financial institution to fund your business, you must be ready to come out a huge collateral. The collateral you are going to provide monthly far more than the loan you want to obtain from the financial institution.

Beside that, you will still need to bribe your way to the top in order to secure the loan after you have provided the collateral. You have to give tips to the top officials that will facilitate the loan and get it secured for you.

As if that one is not enough, the part of the condition you are going to be given is to provide about 15 to 20% of the loan to the person or group of people who are going to sign out the loan.

Lastly the interest rate is over the board. the majority of the financial institution usually has for about 20 to 24% interest rate per annum on every loan you secure with them.

This interest rate usually put the enterpreneur as the tight corner of paying back the entire cost which usually leave little or no profit at the end of the day.

 

[Kendy]

There are many ways in which an individual can source for funds to set up a business apart from going for the famous alternative which is taking of loans. There are entrepreneurial programs on the media such as the; radio and the television where individuals come to pitch their business ideas and whoever has a feasible plan is being sponsored to venture into the particular business of his or her choice. We have such program in my geographical region which has helped so many upcoming enterpreneurs in becoming independent and self-employed. Another way of funding a business creatively would be to opt for investors but you should have it at the back of the mind that investors would only choose to invest in a business which has a feasible business plan, has a back-up plan and has a crisis management technique. No investor would opt for a business which would not be productive in the short or long run. Another way of sourcing for funds in starting up a business is by opting for empowerment grants from philanthropist and government organisations. You could also opt for crowdfunding where you pitch a business idea and you ask for donations and sponsors although you may not get the realizable funds you need to start up a business in crowdfunding but it will go a long way in helping you to accumulate funds.

 

[Chibson]

Sometimes, people have good business ideas but how to raise money to start such a business actually become a problem to them.

There are several ways or strategies in which you can use to raise money as someone who is intending to go into a business. The point in which the OP buttressed is quite very good and I would like to talk a bit about some of them.

The truth is that nobody will actually invest in your business if he does not see any good potential in it. So if you really want Angel investors you must try as much as possible to give them very good reasons why they should invest in your business.

Taking a loan from bank to start a business is actually another very good option but it it is not always advisable especially if you do not have proper knowledge and understanding of how to run a business. if you are a newbie in business, it is not advisable to take a loan because you may go into bad debt.

Going for reality shows can actually give you the exposure and money needed for you to venture into any business and become successful. I have seen a lot of people who became successful through going for reality shows.

 

[Rachael]

I believe that loans is not the only way to raise capital because it baffles me how people complain about the pressure that comes with opting for loans, yet they still go ahead to obtain loans. I prefer to sell off the collateral I would stake to get a loan because when I sell the asset or property, I would be at peace and run my business without panic because duress can make a business owner to make bad decisions which would definitely affect the growth of the business. There are so many negative outcome that follows with taking loans and the short duration of repayment is always the main issue. Capital could be raised through engaging in a side hustle. For instance, most of us working on this forum have a target and this is the reason we take up a side hustle which can help in raising funds.

Funding through one's personal savings is one of the best way to fund a business. At times, taking loans could have an advantage because it would make the business owner more focused, alert and creative in the line of business. Capital can be sourced for through; opting for investors who would find your business idea feasible, through empowerments, through grants from government, through crowdfunding or partnership with a trusted source or person are all practical ways of raising capital. In anything we do, we should always try to revive our creative and thinking capabilities because some business owners suffer setbacks due to lack of creative ideas.

 

[Augusta]

There have been different means of funding a business but it just to hope that those you meet agrees to fund your business abd stand by you to grow it I think one of the ways I love is Angel investors. Since they are buying your idea and ready to put down their money, they will want to help you grow. So I always like this method

I hsve never known about winning a business reality show. it will be nice to win this and get your money to start your dream business. This really sounds great to me but I'm yet to see this kind of reality show though

I will always advised that people should hold. out on losns when starting a business. It isn't for tye good of the business at all. It is better to look for ways that you wouldn't have to start making repayment almost immediately like some loans. Borrow from friends instead or use personal funds.

 

[Chibson]

I always share the idea and perspective that people should always try as much as possible to save money in before they venture into businesses because it can save them a whole lot of troubles and stress.

Like i have stated before, taking of loans to venture into a business is not advisable because of the numerous disadvantages it can pose in the nearest future if it is not properly managed. This is one fact that a lot of people have not fully realised and after some time in their business sojourn, they realise that the loans they have taken is really bringing down their business progress.

If you want to venture into cryptocurrency for example and you don't have enough money it is not advisable for you to take a loan instead you should try as much as possible to get a job and save money.

Many people who started several businesses with their money always have success stories because it will give them the rest of mind to focus and run the business well.

It is also very important for you to try as much as possible to gather a lot of ideas before you venture into any business. Attending conferences and mentorship classes can definitely help you a whole lot.

 

[Ithedicious]

Everybody have their own ways to raise their business capital , but personally if I am fully ready to start a business I will really have to make accurate arrangement to make sure I have the required capital because I wouldn't need anything that will give me extra stressed especially during the time I supposed to be using to grow the new business I have established light.

In as much as capital can be raised through investors and loans but I still believe that you will have a lot of stress free business when you establish business with the capital you have been able to raise.

 

[Yusra3]

When you're starting a business, it can be tough to raise capital. Luckily, there are lots of creative ways to get money!

One way is crowdfunding. Crowdfunding is an online method of raising money for your business. You can use sites like Kickstarter and Indiegogo to raise money from other people who believe in your idea and want to support it.

Another way is selling equity in your company or product. You might not want to give up all ownership of your company but if you have expertise that's worth something, it may make sense to sell that expertise to others in exchange for money or equity. For example, if you're an expert on chocolate making techniques and you know how to make delicious chocolate treats, someone might pay for the rights to use those techniques so they can start their own chocolate business.

Both crowdfunding and equity sales are relatively new ways of raising capital for small businesses but they're here to stay!