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How to raise funds for your business

Most of the time, the common complaint of people who have ideas is the problem of finances. Most people’s dreams eventually die because they’re waiting and hoping for a lot of money to fall into their laps so they can pursue their passions, that only happens in the movies.

There are numerous ways you can raise funds for your business, if you’re hungry enough to go after it. But first, you need to have a plan; the month of April will be devoted to developing a business plan.

SELF-FINANCING:
I call this self-financing as a way to raise funds for your business on the premise that you understand that it is different from business. What happens when you take money out of your savings or save money to start your business is that you are borrowing some money from the business or investing in the business to start.

To self-finance, you could determine when you want to leave paid employment, or when you want to start, and then gradually start saving towards it. Self-financing is the most common method, but many people get into trouble using this system because they feel like they own the business and the money and as soon as the first signs of money start coming in, they gobble it up. But it is still the safest method.

INVESTMENT: sales and liabilities
This is like the first where you sell what you have to secure what you want to achieve. There are times when money may not be available but we have investments or liabilities stored somewhere. If you are truly passionate about your dreams, one of the things that will test your commitment is what you are willing to give up for it. I know people who went into business and gave up cars, land, what could be an asset or a liability depending on expense and cost. But if you look beyond the present assets and enjoyment, nothing will be too small to give up the business.

CAMARADERIE:
This occurs when you generally realize that the dream may be bigger than your funding, which is often the case. But then a note of warning; Sharing your idea exposes it to duplication or poaching, but if you want your vision to grow, you need to share it. The association is the union under agreed terms on various issues; roles and functions, financing and profit sharing.

When your dream is bigger than you or your interests, association may be the next thing on your mind. You may want to enlist the services of a stronger company, or someone with a lot more cash than you currently have.
But then, as I said, be careful about sharing your ideas with poachers, in future editions we will be discussing the protection of your intellectual property.

FAMILY FRIENDS:
Another way is to take advantage of family inclinations and relationships to develop the amount you need to start your business. This is using other people’s money (OPM) to fund your ideas. There are friends and family who have the cash you need to start your business. If your plan is convincing enough and very feasible, you will surely receive the necessary amount of resources.

HIGH NET WORTH INDIVIDUALS
This is using other people’s money (OPM) to fund your ideas. There are high net worth people who have the money and are looking for people who have ideas and need financing. These people are willing to discuss your ideas and help you fund them, some may seek to partner with you in business, while others have funding companies as part of their own ways of giving back to their communities.

INSTITUTIONAL SPONSORS
This includes investment banks, venture capital firms, SME financing organizations and microfinance institutions. There are numerous institutions, including federally backed ones, that have been empowered to support growing businesses at reasonable interest rates that even banks naturally won’t want to offer. There are lists of microfinance banks and SMEs on the Internet and in the press.