At a certain point in life, you begin to get convinced by the widespread gospel of entrepreneurship and you start to think deep, plan and strategize on what business or industry to pitch your dream, how to start and how to achieve success in that chosen path. When you are almost at the point of execution, there is a challenge faced by aspiring entrepreneurs; and that is the problem of financing your idea–to raise capital.
To raise capital for a business or entrepreneurial venture is often worrisome and perhaps, the major setback that kills most people’s dreams. It seems like a dead-end for most people, a time to terminate the pursuit of their dreams.
However, there are proven ways which if properly executed, will help you raise capital for your business with ease. These strategies are simple and within your reach but often overlooked by most people.
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Here, I present to you, 3 simple but smart ways to raise capital for your business venture:
1. Friends and Family
Often times, family and friends are willing to invest in your dreams and most times, they just do it for free based on kinship ties; they want to build a stronger family relationship.
For this strategy, you just need a moderately brilliant idea and you are good to go. This even works more in a family where no entrepreneur has every existed or emerged, they are usually willing to give it shot especially if you have been a good child, sibling, cousin, etc.
One of the tested and trusted avenues to pull this off successfully is family reunions, family dinners, etc. Any gathering where the older and richer family members who have watched you grow are present. This may just be your passport to building a great business empire, don’t hesitate.
Make sure you have your business idea and plans properly outlined. You can even show them a chart or a one-page proposal. These makes them know you are serious and worth investing in. Give it a shot in the next family get-together.
2. Payment before service
Another spectacular and viable mode of raising funds to begin a business which involves the production of products and services are by getting clients who are willing to pay you for building a product before you start.
For example, if you build inverters and you get a client who is willing to pay three-quarter of the total price — which is enough to fund the project — before service. This way, you can gather funds to begin such entrepreneurial journey.
Try to get clients who believe in your untapped potentials today, show them a wonderful sample and convince them to pay before service.
3. Business plan competitions/Enterprise challenges
Business schools, financial organizations, companies and governments usually organize competitions which involve individuals or teams submitting business plans in which the best among them is/are chosen and funded. You can prepare viable, intriguing and creative business ideas and be on the lookout for such opportunities. You may just be lucky. This mostly comes at no cost or may require a meager sum for registration.
The key to making this opportunistic strategy work for you is making sure you have the best in terms innovation, viability, and methodology.
Search online for opportunities, you may be lucky.
As an enthusiastic and visionary person, you should not let obstacles like funding get in the way of your dreams. Think outside the box, and act outside the ‘sphere’, get started anyway. The sky is the starting point if you can successfully get past this stage by taking advantage of the strategies suggested above.
Don’t forget to invite me to your start-up launch. Good luck!