What if you have a great business idea, but you don’t have the funds needed to make the idea a reality? This can be very depressing. This is the situation where many young entrepreneurs find themselves today.
However, there is a solution to this problem and I will be sharing with you the solution in this article. There are a number of things you can do if you’ve got a business idea and you don’t have the capital yet :
1. Look for someone who has the capital you need and partner with the person. However, ensure that the person has a good attitude and love the business idea. Also, you both should decide , agree on and document the terms of partnership to avoid having issues later in the future.
2. Look for a job in the meantime, work and save some money for your dream business. This can take months or even years, but it’s a process and a sacrifice you can undergo to achieve your dream business goals.
3. Approach family and friends for a soft loan to start the business. Most friends and family members will be willing to give you sponsor your business instead of giving you money to buy groceries.
4.Apply for a grant or a business loan from a Micro Finance bank. You may need a good business plan to be able to ask for the loan from a bank. See How to Write a Unique Business Plan. In Nigeria, LAPO micro finance bank is popular for giving low-interest loans to small and medium scale enterprises.
5. Use upfront payment from potential buyers. That’s in a situation that the business idea is to sell some products. You can look for potential buyers and ask them to pay upfront for the products. Then, with the money they pay you, you can then buy the goods to supply them.
6. You can look for venture capitalists who might be interested in your business ideas and willing to sponsor it. Venture Capitalists are usually investment companies that are on the look-out for promising small businesses or business ideas whose owners doesn’t have as much money required to fund the business and make it big.
7. You can look for Angel investors who might be interested in your business ideas. They may sponsor your idea, if they buy the idea. Angel investors are people who have the money and are interested in your business idea or small business and willing to invest their money into your business with a view to getting a percentage of the interest or return from the business or equity.
8.You can join a corporative society. This is basically a group where members take turns to finance each other’s projects, by pooling resources together to support the member. I bought my first real estate property from money given to me by a cooperative society I belonged to at that time.
9.You can sell your property to raise funds. Some great entrepreneurs you know today, at some point had to sell a property to support their business idea. At the early stage of Apple Computers, Steve Jobs had to sell his Volkswagen car for $1500 to support the business. However, today Apple is the world’s most valuable company. See Apple – Inspiring Story Of How The World’s Most Valuable Company Was Founded
10. Write a business proposal and send the proposal to firms and companies that would need your services or might be willing to buy your products. When you’ve secured the contract and the company has issued you a purchase order, P.O. Then you can use the purchase order to seek for a purchase order financing from lenders, investors or even the bank. Most people or organisations will be very willing to support or finance a contract that you secured when they see that you have a purchase order in hand. See How To Write A Contract Winning Business Proposal – A Comprehensive Guide.
From my years of experience in the world of business consulting and entrepreneurship, I know that it is very possible to get money to finance a good business idea. Granted, it might not be easy initially, but it is achievable if you can work at it and apply some of the ideas I have laid out above for you. For more ideas you can also see 12 Effective Ways You Can Raise Start-up Capital For Your Business.
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