Raising capital is probably the biggest obstacle many entrepreneurs face in starting a business. It’s both a serious problem and a popular excuse for many business-minded people.
Anyone can start a company, put up a website, and create a Facebook page, but what determines where that company will stand six, 12, or 18 months down the road, is not only sales but the funding and capital behind the business. You need to be able to keep the lights on, compensate your employees, keep food on your table, and ensure operations don’t come to an unexpected halt.
However, the capital needed to start a business can be raised from the sourced highlighted below:
Friends and family.
Word of mouth is always the cleanest way to acquire your first customers, create your network, and begin your entrepreneurial journey. The success of your startup, more times than not, relies initially on the support from friends and family. Sometimes that means their time, their emotional support, or in some cases their capital. Because, in the end, who wants to see those near and dear to them struggling?
There are many people (philanthropists) who are interested in financing businesses in the world and these people are regarded as Angels. The major requirement by Angels is a detailed and convincing business plan. Business capital can be gotten from such people. To know more about Angel, engage google search.
This is an avenue of raising money to start any business. What an aspiring entrepreneur needs to do is to log on to such sites. They help in raising money worldwide and the money is sent to your domiciliary bank account. The advantage of this fund is you do not have to pay back at all and you can benefit from the scheme irrespective of your location. Many businessmen have sourced fund from this means and you can be part of these people. Examples are gofundme.com, shell-livewire.com
Kickstarter, IndieGoGo, Gofundme, etc. We’ve all heard of these. Crowdfunding is a centralized way for startups to reach out to a large audience in their niche to make their prototypes or ideas a reality. In return, you not only create a community around your product, but you acquire your first users to test, utilize, and help innovate what you are working toward.
An entrepreneur who needs fund to start his business can join a cooperative society. Through this cooperative society, funds are contributed and pooled together and the entrepreneur can access part of the pooled fund to start his business since he is a member of the cooperative society.
Olatorera Consultancy Limited provides business development services to companies looking to grow, enter or do business in Africa. We also provide consultancy services to high net-worth individuals including politicians, business executives and aspirants