For how long have you had the idea of business but you don’t know where to source for startup business capital? A lot of people are in this situation. They have good business ideas but do not know how to get the capital to start up the business. Here, I will be sharing with you some of the common sources of business funding you can utilize to start your business.
A lot of people have given up on their business dreams because of lack of capital. You don’t need to add to that number. You need to be able to rise above the discouragement and start your own business. With time, you will overcome the situation and be thankful to God for how far you have come.
So, what are the best places or best ways to look for business funding for your startup?
How To Source For Startup Business Capital
Here are some of the best ways to look and get business capital for starting your enterprise.
1. Personal Finance
Can I tell you a hard truth? No one will invest in your business if you don’t. Before anybody is willing to help you start your business, they want to see what you have already done. You cannot need 100k for business and you can’t provide even if it’s 5k. One of the easiest ways to raise your own money is by being employed. Get employed, save some part of your salary and use it to finance your business.
2. Family & Friends
Family and friends are another huge source for startup business capital. If your business idea is ideal and feasible, and you have supportive family and friends, most of them would love to support you in whatever way they can. Sometimes, it could be from your parent, uncles, aunts etc. Don’t be ashamed to ask,
3. Business Grants
Grants are simply money given to you by a benefactor which you don’t have to repay. Grants are mostly given by the government or some established corporate firms. However, you must meet up with the strict requirements before such grants are awarded to you. Most times, they would also need to monitor and or partner with you to ensure the appropriate use of the grant.
4. Angel Investors
Angel investors are wealthy investors who are looking for businesses to invest in. Just like in grants, you must present some vital documents such as business name registration and many others. Angel investors may not ask for the money repayment, however, they will see to have some certain percentage share of your company/business.
5. Bank Loans
Most often, this is what people think first when talking about business funding. Almost all banks have provisions for business loans. In this case, you reach an agreement with the bank on the amount you want to borrow, the interest rate and the duration. Bank loans are often difficult to access because of the processes involved. Furthermore, banks ask for collaterals before giving out loans in the event you fail to pay back your loan.
Getting funding for a business isn’t often that easy. However, with these 5 tips shared here, if you do due diligence, you should be able to obtain some sizeable amount to kickstart your business loan.
Do you have any question about where and how to Source For Startup Business Capital? Ask in the comment box below.