Perhaps the most essential need for start-ups, aside from the entrepreneur and the business plan, is money. It’s a reason why the success of most start-ups is a successful investment, often from investor pitching or some other source. But many would-be entrepreneurs find it difficult to actually secure funds for start-ups after thinking up the most genius ideas. And truth be told, you can’t really blame them- everyone is struggling to stay afloat in the competitive economy; no one would be so willing to just dole out good cash just because you happen to need it. How then do you find means to get that money you direly need for business? You may find these suggestions useful.
- Family- The closest people to you are the ones most likely to understand your demands and give you the most flexible conditions for loans. Speak to a trusted relative about the business and let them understand the urgency of the situation. Remember to treat this exercise professionally, as you wouldn’t want family ties meddling with the future of your business. Be smart, tactful, but sincere.
- Personal Savings- You may have passively saved some money in some account or at some secluded area for future use. Sometimes these savings may have been suited to meet other specifics like health, education or travel. But at this point, you need cash for your business to survive, so it’s fine to tap into those accounts. The good thing about business is that they grow. In that regard, be sure to commit to replacing the used savings with business proceeds, or better still, use the profit to start an investment that will accrue enough to meet a multiplicity of future needs.
- Personal Assets- Not everyone may be willing to take this step, but hey, again, you could always regain assets after liquidation. Sell off some possessions that aren’t a necessity at that moment, especially those that can easily be regained after chalking successes in business. It could be jewelry or some extra electric appliance. Thankfully, a number of online micro-trade platforms exist now to make market and purchased easier.
- Rents- Instead of selling off your assets, you could also rent them out. A bit of inconvenience now, to reap mega yield later is always worth it. You could give out a room or two in your home for rent, or perhaps a car for commercial services. In doing so, however, pursue lucid contracts that do not put the full burden of maintenance on you as the owner, especially as you may not be at fault for such possible occurrences, in the period of rent.
- Investor shares- You could take on a business financier to aid your project, who will have temporary shares in the business until the period when he/she has regained the principal amount invested, subject to your mutual discretion. Again start this with a written contract to ensure that no trespass of boundaries occurs or exploitation on the part of the investor.
- Loans & Collaterals- The option of borrowing from a financial institution exists against a specified collateral, say your home or car. Financial institutions exist to regulate such affairs and will be willing to offer you such loans for business, so long as you are willing to meet their terms. Find one that has flexible and realistic conditions that suit you personally.
- Partnerships- Some agencies or enterprises exist that specially partner business for projects, offer funding, expertise, and advice for business growth. Identify one of these ventures and speak to them about your ideas. It could be on agriculture, real estate, or any business field. Establish a business partnership with them over a short or long term, to realize your business dreams.
- Pre-Orders- though are not so popular style of financing, some micro-businesses can run on pre-orders from customers to make headway with business. Identify potential market that will be willing to patronize your service, show comprehensively how you work and assure them of results, and use their pre-order cash to meet their demands and gain profit for future self-funding. Use immediate amenities like your home as a point of contact and working environment. These often work with small businesses like culinary jobs, dressmaking, etc.
(The Pitch Hub Team)