how to source for funds for your new business
BUSINESS IDEA HOW TO LOAN

8 WAYS TO SOURCE FOR FUND TO START UP A BUSINESS IDEA.

how to source for funds for your new business

 

It is very interesting these days that most youths are coming up with business ideas and entrepreneurial strategies.

But as a matter of fact, the world economic system does not create a level playing ground for such a revolution in the society, the business minded youths are now saddled with the responsibility of sourcing for fund themselves to get their business idea running. Most youths give up at this point, while most get discouraged or even do negative things per say just to get through, but be it as it may, there are proven strategies that can help in getting this done.

  • How much do you need: This is the first thing that should be taken care of, you must know how much you want as a matter of fact, this will guide you well at least to know how best to plan yourself. Do your analysis and feasibility studies well, in that case it will help you to know how much exactly you need for the business.
  • How much do you have: At least, you need to have something, it must not be cash, it might be a strategy or a concrete plan of where you are going, in that case, you are properly guided and when you are discussing the idea with whichever person that is involved, there’s an impression that it creates in your mind and in the mind of the person that you actually have something to offer and that you know what you need the money for.


  • Do you own the skills or technology: As discussed above, the skills or the technologies first before you start talking about the money you need, even you yourself, if you are not sure of the skill, you will even doubt yourself to put your money in what you are not too sure of, talk more of when you relate the matter to someone else who may want to invest, the person should be convinced beyond every reasonable doubt that you have the needed skills or technology, the skills may even reduce the amount of money you may need for the start up.
  • A network of people: Your network at times determines your net worth in life, most a times poverty results from the relationship you toiled with, considering the nature of the business you wish to start, at times what you need is not the cash, your network can help a times, it may even be the network that will help you to some extent, if your allies don’t have the money, they may know who has the money, thus you may be recommended, create enough networks.




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  • Personal Savings: You don’t need the first kobo from someone else, at least if you need #100,000 you should have #10,000 to start with, personal savings will help you to peach your tent somewhere for a start, it will aid you in doing some underground necessities, the good part of it, is that it will boost your courage and confidence whenever you are thinking or talking about the business.


  • Network of family members: Your family members are your first investors or encouragers, you really need them. As a matter of fact, your family a times believes in you even when nobody believes in you, you can get your first fund from your family members. Your family members can go a long way in helping you.
  • Equity financing: This has to do with investors for real, you can get funds from real investors, but at this point, I suggest that you don’t ask for fund from personalities that barely fend for themselves that will be on your neck for profits even when you have not made one, take it upon yourself to talk to people about your idea, business strategy, investment opportunity and let them know that you need fund.
  • Ownership Investment: This has to do with stake holding, you can convince the personality that you think has the money to own the business for a particular period, with legal agreements duly signed, the stakeholder owns the business, you use your idea and skills to run the business, pay up gradually, until you are done with all payments.
  • Debt Financing: At a times you can get your funds from debt financing strategies, this includes government loans and commercial loans and most recently loans from micro finance banks, this is one of the ways of getting your business idea funded, most of these institutions may request for a detailed business plan, so it is wise that you equip yourself with one.
  • Crowd Funding: In this case, friends with similar ideas can come together to fund a business idea, in this case, it may have to do with purchase of machinery and equipment needed to make the business succeed. So one can liaise with competent friends who have common goals, they can come together to launch a business as a group of business allies.
  • Asset Financing: In asset financing, it in most case is similar with stake holding, this has to do with you getting a particular asset for a fee, you gradually pay to the owner of the asset until it is completely paid for, with this method in mind you can get your business idea running.
  • Business Grants: This is one of the easiest way of raising fund for business, there are individuals and agencies that are interested in some particular ideas, in that case, they may want to give out some grants for growing businesses.

With all the aforementioned, you must come in agreement with any of the strategies above and you are good to go, unless you don’t have a good idea, but if you have one that you are sure of and courageous about pursuing, any of those strategies can help in funding your idea.



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