Funds are among the main factors required by any businessman to start or expand a business. If you already have a business idea, but you realize that the business cannot kick-start without an adequate fund, you may find yourself jettisoning the business idea. A business expansion also relies heavily on funds.
Opening new branches, equipping a new office and buying new gadgets for business promotion will all cost money and you may be compelled to shelf the idea if there is no money, irrespective of how viable the business idea may be. Maybe banks are refusing to give you a loan for your business because you do not have collateral or maybe you also have a poor credit rating, which compels lending houses not to consider you for a short-term loan. No matter the case, you can still raise adequate fund to finance that beautiful business idea.
This write-up is put together to enlighten you about how you can raise funds for your business so that you will not have to throw away that beautiful business idea because there is no fund to implement it. Continue reading to find out about what you can do to raise funds for the business.
What have you saved?
It is time to open your wallet and find out what you have been able to save over time. The little money you have in safe can successfully start the business process. Even if it is not enough, it can take the idea off from the ground, and you can source for the additional fund as the business process progresses.
If you have not been saving, then you can start right now. You do not need to put a lot of money by as savings; you can start small. Additionally, do not make it rigid or turn the saving process to a do or die affair. You can save a $10 bill today or a dollar bill tomorrow until you have saved as much as you can. Saving this way will add fun to the process and make it not so tasking.
Even if you must get funds from others, they will like to see how much you already have in safe. These other investors will be more willing to help you if they see that you have been able to save some money by yourself towards the business.
Look for strategic partners
You need to get ready everyone that will contribute to the progress of the company, like distributors and suppliers. Also, never forget the importance of the potential customers. Sensitize them early on about the products and services the company will be providing and let them know when the product will hit the market. You can start making sales from the first day if you do your pre-selling properly.
You can compel your suppliers even to get paid after sales. They can accede to this plan if you look and act trustworthy to them. They can start with a small number of raw materials and increase the supply if you are faithful to the terms of the agreement by paying them after sales. With time, you can kick-start the business without having to spend much. Also, you can make the distributors work for you and pay them after sales. You only need to prove yourself to be trustworthy for them to agree to such a term. Always remember that nothing is impossible.
Additionally, you can increase your client base by delivering top quality consistently. The consistent quality will make them come for more, and you can take your business to the next level this way. You can increase sales by giving your customers discounts or other incentives.
If you follow the tips above, you will never have to spend so much to start that business; you would have used Other Peoples’ Money (OPM) to kick-start your business.
Start small
It is not wise to despise the days of small beginning. Bear in mind that virtually all the blue-chip companies you see today started small and had grown over the year. You too should be ready to start small. Prepare your mind that the going will be tough and you will not have problem weathering the weather, no matter how strong or wherever it may blow.
Consider the following
• Be ready to share office equipment and service with others
• Move to a business incubator or collocate with another company
• Use that computer and server you have reserved for personal use to run your business for the time being
• Delay capital purchase
• Negotiate fees and terms with your suppliers
• You do not need to rush in paying the supplier; the money you could have paid him can be injected into the business again for great yield.
• Ask your important suppliers for trade credit terms
• Use teleconferencing or smart scheduling instead of making the trip; this can help to save a lot of money
• You can hire interns for your company. You will not have to pay the interns a full salary.
Non-dilutive capital
Some private organizations or government institutions provide grants to startups. You can partner with such organizations for grants with which you can kick-start your business or expand an existing business. Some of these organizations can give the money out in the form of loans, but they have very lower interest rate compared to banks and other lending houses. You may be fortunate enough to qualify for a large source of money; the fund is milestone-driven also.
Friends and family
If you have tried all the methods provided above, but none seem to be yielding the money required to start the business, you can easily get in touch with your friends and family to see if they can help out with some cash. You can pay back with time as your business grows.
Conclusion
The methods described above can help you to kick-start your business and provide the required funds to bring your dreams of business prosperity to reality. You can also consider banks or lending hoses, provided you have a good credit rating.
