So you have a business idea, you’re ready to conquer the world but now, you need money to start this business.
Here are ways to get funds for your business;
Apart from the money in your savings, another way to raise enough money is by pitching your business idea to your family and close relatives. Don’t just assume that because they are your relatives they’ll get you the money once you tell them you want to start a business.
Prepare to present your business idea to them like you would to potential investors in a firm.
It might be an issue to get the funds from them if they don’t like or believe in the business plan that you have. Things like this with family and friends can be tricky but make sure that you believe in yourself and your plans.
Then, take conscious steps to win their trust and show them that you’re capable of running and sustaining this business idea.
- Bank of Industry (BOI)
The bank of industry provides Small, medium and large enterprises, with funds needed for starting their business, expanding it or modernizing it.
Credit worthy investors will be required to demonstrate their commitment to the project by contributing at least 25% of the project cost excluding land. Their financial situation is considered (including availability of collateral and guarantee), their reputation and their ability to meet loan repayments.
You can gain access to Bank of Industry facilities in 3 simple ways;
* Step 1: Write a formal application letter
* Step 2: Completion of BOI’s Questionnaire
* Step 3: Submission of Forms and Questionnaire.
- Friends and acquaintances
Outside your family members, the next set of people that can help you with the funds needed to start your business are your friends.
Pitch your idea to them and show your capacity to succeed at this business.
Let them know your business plans and ideas. Start with your close friends that you are sure would be willing to support you and give whatever they have. Then you can ask your other friends and well wishers.
- Get a Job in the meantime
While seeking money to fund your new business you need to understand that not everyone would be able to help and it’s not because they don’t want to but because they cannot afford to at the time.
Everyone has personal needs, debts and financial struggles you may not be aware about. So, to fund your business and your own dreams, you might have to work for someone else’s dream as well.
So, get a job, it could be in line with your business so that you can gain experience to start yours or something else. While at it, put in your best and save money as well.
You’ll need the experience. Plus, you’ll manage employees better when you’ve been one yourself.
- Grants and Angel investors
Another source of funds for a new business is a business grant. Grants are non-repayable funds or items given out by grant givers regularly by government, associations or trust, to a beneficiary.
Angel investors on the other hand are those wealthy people who give capital to start a business in exchange for ownership shares. All
you need to do is convince them about your business idea with your plans.