How to Finance Your Business
Setting up a business is a key to wealth creation. But the truth is that many business are in dire need of funding to grow but the fund is not available. Many entrepreneurs could not start their dream business because of a lack of funds. However,many people do not know that fund is available only if they can apply simple strategies to source for whatever amount they need for their business. Here is one of the methods to fund a business with ease.
Personal savings should be what a serious prospective entrepreneur will fall back on first when venturing into a business. If you are not willing to commit a substantial portion of the needed finance, most lenders and investors will assume either that you are not really optimistic about your business success or that you are not willing to stay with the venture if going are tough; and they will also decline to be part of it.
To show you believe in your dream and idea, you have to put your own money first as your personal contribution. Don’t ask others to carry the risk for you when you are not ready to bear the initial start up cost or invest at least 30% of it. This personal saving may come through:
I. SAVINGS: from present employment, retirement benefits and salary advance from your employers.
II. WORKING UP SOME IDEA TO GENERATE FUNDS: Do not hesitate to do any type of work to raise the capital/money you need. It could be manual labor, part time work in form of laundry, marketing or research work for some institutions etc.
III. SELLING OFF LUXURY ASSETS: Even having strongly believed in your idea, it remain very difficult to raise initial capital through conventional means; you may do yourself good therefore by taking inventory of your assets. Sell off your luxury items such as the video cassette players, cars, jewelry, e.t.c. Since you can always replace the items sold and buy even more when you become rich, why not go ahead and do it now if that is your last option. The dice is cast and the choice is yours.
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