Most people get business ideas but I know the tricky part is the raising of capital part. Capital is that
amount needed to start up a business. Raising capital is never an easy task and often requires a lot
of determination and patience. It is not easy to get capital especially if you have just cleared your
education and the banks do not make it easier due to lack of collateral.
There are a number of ways that an entrepreneur can raise capital for that business idea, however,
before using any of those methods always one has to have a business plan. A business plan simply
states the nature of the business you want to start up, the goals, objectives, mission of the business,
costs, expenses, staff and everything business related.
Below are some of the ways one can raise capital for that bomb business idea.
- YOURSELF OR PERSONAL ASSETS.
It is just clear; there is no getting around this one. Only in rare cases that can an entrepreneur
start up a business with kshs 0 of his or her money. It doesn’t have to be a fortune. It is also a
great way to attract other investors to help. You should consider it as your bit to you and
prioritize it. It also goes down to how much one can sacrifice, there are those belongings one
can do without. You can sell your assets with the hope that you will always get a better
version of them when your business pic. Though depends on one’s risk appetite. Most people
opt to give their assets as collateral to banks instead.
- FAMILY AND FRIENDS.
Those people close to you will always believe in your vision and listen to you and listen to you
and will be willing to support and see your business grow. All you need is just pitch your idea
professionally, treat them like real investors and you will be surprised who has extra cash and
is ready to support your dreams.
- BANK LOANS AND LENDERS
This depends on your credit profile and the kind of collateral you are putting to offer up. This
is the reason why you will need to have a well drafted business plan in place. From a
traditional stand point this is the best bet you have to securing that capital and you can help
raise your credit score at the same time. Also, by securing this loan other investors get to see
that you are a “real company”.