Business Ideas Raising of capital

[Mastergp]

Raising of capital is very important is because with it one is able to startup a business of his or her own and it not easy to raise a capital that is why one borrows loan from bank, or other means in order raise a capital.

The methods by which a company may issue it shares include the following:

By prospect:
A prospectus, giving particular of the company and its business, is published with application form. shares are allotted to those who apply.

By offer for sale:
The whole issue of shares is allotted to an issuing house (merchant bank, finance house) which offer them to the public by means of a document known as, offer for sale.

By placing:
This is the method of issuing securities through an intermediary such as a firm of stock brokers. The intermediary will endeavor to place the issue among its institutional investors.

By a Right issue:
When a company is established, it may raise further capital by offering Shares concerned to existing members on favorable terms.

By introduction:
The company concerned can apply to the stock exchange for sales of their shares. There will be an offer to the public of a new issue of shares through the stock exchange.

 

[Ithedicious]

Share is mainly for people that have the interest to engage in partnership business and share the company's assets with people , but what of a situation in which someone is just interested to establish a business on their own without having to share the business with people ?.
Raising a business capital can sometimes be a challenging factors , that is why I will always keep on saying that it is not everyone that will be able to establish a business . Some people may not just want a situation that they have to establish a business that worth millions of naira but will just need opportunity to establish a simple business. Such simple business share can't be sold out to investors.

So it depends on the type of business someone is willing to establish and we also understand that it is not everyone that will need opportunity to establish this type of business

 

[Shigobad2020]

There are diverse ways in which you can raise a capital for your business , and before you start your business , you must think very well to know what you actually wants in your line of business , if its starting alone using the litgle amount of money on you , starting your business with a business patners and getting a loan or going for crowndfunding as a means of raising capital for your business .
As an entrepreneur, starting a busuness with the owner fund is the best thing to do because you will have a peace of mind knowing you don't owe anybody anything and secondly you can get money through crowd funding which means going to friends and family for help , the money given to you can help you fund your business , and the last straw is getting a loan to start your business ,