HOW TO RAISE FUNDS FOR YOUR BUSINESS

Culled from The Capitalist Magazine

By Daniel Onyekachi

CEO BIG DADDY EMPIRE

Raising money to start businesses has always been an issue with most start-up entrepreneurs. The importance of cash for funding a startup business cannot be over emphasized but ranked side by side with original ideas, focus, persistence, passion and vision. money ranks at the bottom. You must not start big. Apart from the fact that raising funds may be a challenge. As a beginner, you are bound to make mistakes and mistakes cost money. If you start big you make expensive mistakes and may find it difficult to recover. You can start from your living room, garage or boys’ quarters hence you do not need a shop. At the beginning, it is wiser not to hire anyone yet until you generate enough turnovers to support that overhead. Be a one man squad and learn as you go along. As for equipment, you can improvise or rent. That way, you do not have a heavy financial outlay to purchase equipment.

 SAVINGS

In raising money for a business startup, the best bet is personal savings. The best source of cash to start your business is your savings. You have to start saving towards your business if you have not done so already. This involves cutting out fat in your budget, taking off things you can do without for a season.

Depending on your lifestyle, it may mean reducing the rate you eat outside, cut your spending on clothes, luxuries, reducing your phone and cable TV bills and so on. If you can save 10 percent of your gross income, you have an equivalent of one month salary in 10 months. If you save 20 percent, you have one month’s salary saved in five months and so on.

 TURNING TRASH TO CASH

Another way of raising money for a business startup is by disposing of stuff you own that you no longer need which others are ready to pay for. It could be items bought but never opened or old equipment...

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