Fund Sorting For Business Capital, Perfect Ways to raise capital for business – The misfortune of not being able to turn brilliant business ideas into a real life business is propelled by the inability to raise capital for the Start-Up of the business. You see then, that birthing sparkling business ideas is relatively easy and about the first step. The difficult part is accruing the capital needed to make the ideas take form in reality.
Raising Capital is just about a serious problem and a popular excuse for so many business-minded people. Notwithstanding, peeking into the Success stories of entrepreneurs reveals that, Capital is readily available to everyone if only they knew where to Look.
Let’s explore different ways of raising capital for that business. But keep it at heart that if one capital funding method fails, others should be tried.
- Personal Funding
Money is bi-directional. If you’re not willing to give out money, you can’t gain money. If your idea is as brilliant as you say it is, then you should have no problem committing your money to it.
It would be a lot easier convincing others to assist you with Capital when you already have some money of your own. That would be a sign that you believe in your business idea and that you show great faith for the business. With this, you would have a firmer control of the business.
- Family and Friends
If you’ve gathered some money for the business and you still need more money, family and friends are the next best source of capital for your business.
Friends and especially Family are people who already have Love for you (ceteris paribus-if all things are equal). They are more willing to listen to your ideas and support you in ways other sources won’t.
Patrick Ngowi (from Tanzania) developed a $1800 loan he got from his mother into a Multi-million dollar Solar Energy business..
- Get you a partner with the “dough”
Many times, it’s not enough to have amazing business ideas, you might still need a partner with like mind and the “money”. You both can share ideas, contribute the capital, drop values at the table and then, share the ownership of the business. That would be a 50-50 win for you both.
Iroko Tv (Largest online movie collection in Africa) kickstarted with the Founder Jason Njoku finding a partner, Sebastian Gotter. Mr Jason brought the idea but Mr Gotter contributed $30,000 that started the business. Today, Iroko TV is a Multi-million dollar movie business.
- Crowd Funding
Crowd Funding is a new and fast way of raising capital. You get the opportunity to get funding from many people (Crowd) at a time.
All you have to do is present your business proposal to a crowd (perhaps on a website) and if your proposal is convincing enough, you get funded by potential investors.
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- Opt for a Business Plan Competition.
If you’re sure your business plan is just so brilliant, you can go In for competitions. The competition serves two functions- first, it boosts the publicity of your business and the other, you get the desired capital for your business.
Lorno Rutto (from Kenya) in 2011, won the prize money in the Cartier’s Women Initiative Award. The money was to her, the capital to starting her own waste management company. And Today, her company has too many recorded feats.
Whether you win or lose, you’ll be sure to have drawn a lot of attention to yourself and your business ideas and who knows what good thing can spring forth? It’s a Win-Win!
- Get a Loan from the Bank.
This is one great way of raising capital for your business. After all, Banks operate majorly on the interest accrued from Loans.
You just need to have a Lucid and twinkle business plan. No bank would want to delve into so much risk. You should do anything to reduce the high risk as a starter, that would give your loan application a greater chance of consideration.
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