For many entrepreneurs, raising capital can be a big deal. Some who have started out already in business also find out that they would need more to spend than they thought initially. Being an entrepreneur means that you have to be able to forecast what you might need to keep your business running for the first few months and beyond. Here are 5 ways you can get enough funds to set up:
1. PERSONAL SAVINGS
The first investment into your business should be made by you. This is the easiest and safest way to raise money for any venture you might be interested in. Some people use the savings they have kept overtime and some others begin to save when they get the business idea. Providing some amount, no matter how small, shows your commitment to the Idea.
2. FRIENDS AND FAMILY
This means might be embarrassing for some people but if you have kind parents or siblings and generous friends, you might want to try it. This means is also safe because it involves the people you trust. Someone might just be willing to encourage you with some amount (nothing given with good intentions is too small).
3. GET A JOB
With your focus in place, you can take up a job that will earn you some money. The job can be temporary since you will have to leave as soon as you have enough. You might want to try some online jobs or employ one skill that you are good at.
Raising capital through your customers is another safe means. Here, your customers pay in installments. They, first of all, make a deposit of a certain amount. Make sure it is enough to cover the cost of production and you will get the rest of it at delivery. Unfortunately, this does not with every kind of business.
You can also seek a bank or cooperative society that you can get a loan from. However, this can be avoided as much as possible; at least if it is not a lot of money. Also, if you find it difficult to return borrowed things, DO NOT subscribe to this. If your business is not the type that yields income immediately, you might want to consider your options and the interest rates properly. Yet, it can be of help if you need a huge sum at once.
Author: Lawal Tomi
Tomi is a recent graduate of English at the University of Lagos. As a trainee at Ready Set Work 2018, she has a passion for promoting employability and entrepreneurship. She believes in investing in people.