Do you want to start up a business but no capital to do that?, kindly discover these 12 fantastic ways of getting money to start up a business now.
Many intend to quit their jobs and become their own boss but can’t do so because of lack of start up capital.
Starting up a business demand some good amount of money, oh yes it does and you know that.
Relax as I show you some 12 fantastic ways of getting money to startup a business now.
So lets quickly run through the best ways of raising capital to start up a business.
1. Startup a Money Savings Plan:
If you’r passionate enough to start up your own business then keeping a part of your income is no big deal for you.
Cultivate the habit of saving, never spend all your income no matter how little it may be, save something.
A little portion of your income saved over 1 year could be a huge amount of money.
Don’t just save money to buy a car or live in your dream house, or save to buy an expensive jewelry.
You can start up a small business with your savings if only you would start saving now.
Maybe you a working class who earn some salary every month or work to earn yourself some daily wages, you can start saving from your income no matter how little it maybe.
Keeping a little percent of your income as savings might look small but over a period of time it could become big.
If the reason you don’t save is because your income isn’t enough, not saving a token from it also doesn’t do you any good.
You could even be a student who collects money from daddy, mummy or even from relatives as pocket money.
If your dream of starting a business is truly worth it then you would save some pocket money for it.
Having zero capital and no personal money to invest in your business idea isn’t cool for a new entrepreneur in business.
Investing your own money will show signs of good entrepreneurship attitude and compel others to help out.
One good advantage of this method is that you operate completely independent with your own money.
2. Partnering With Someone Who Has The Cash:
Do you have a good business idea but no startup capital, don’t worry, just get a partner.
Look for a partner who has the cash you need and believe your business idea will work out.
Finding someone to partner with you wouldn’t be that difficult if your business idea is good enough.
Partner with a person who believes in your business idea because it takes understanding for two people to work together.
Present a detailed business proposal to attract partners to your business model.
Many businesses you see today are results of productive partnership, some partners have the ideas, others have the cash.
This makes the union a sweet one and makes both partners value their partnership.
Many people around have the cash you need to start up your business, but you need to share that good idea with them.
Note, you need a business partnership agreement to avoid spending and losing money on settlement concerning the percentage share of each partners in the business.
The ball is now in your court!!!
3. Advanced Funding From Customers as money to run your business:
Desperate customers who are in need of a particular product of service are always willing to make full or part payment in advance for such products or services.
I once had to pay a business center in advance for a particular electronics i needed, oh yeah i did.
This systems works well for businesses that require no investment capital to startup.
When a customer pays in advance it gives you the privilege to do business with that customer’s money.
A desperate person is willing to do anything to get what they want, so paying in advance isn’t a big deal for them.
Oh yeah, it sounds cool right, but this method requires a good level of business integrity and reputation.
Web designers and software developers also use this method of business funding.
Advanced funding from customers might just be a crazy way of getting capital to run a business, it really works.
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4. Applying for Small And Medium Business Grants are good ways of getting money to start up a business:
Have you heard about a business grant before?, maybe you have heard about it before or even applied for one.
Okay, Let’s tell you what a grant is all about!!!
A grant is a sum of money given to a business owner as support for them to further invest into their business to grow their business.
It is usually distributed by corporations, foundations, government bodies such as NGOs and Trusts.
Grants given to business owners don’t require them to pay back because small businesses impact the economic development of a country.
Thus providing more jobs, producing more products and services thereby raising the GDP of the nation.
Grants could come in different form ranging from Federal to State level government. Just ensure to check out various business grants currently available in your country.
Don’t get tired of applying for grants because you have all to win if it works out for you.
Funding your business from grants can be one of the best way to get capital for your business.
So if i were you, i will keep giving it a try because if it works out, i win the whole money.
Grants funding remain one of the best ways of getting money to start up your business.
5. Use Your Assets:
An Asset could be seen as anything of value to man.
It could be your house, your cars, lands, a machinery or any other resource that is highly valuable to mankind.
Why would you prefer to keep so many expensive and high value assets when you can actually survive without them?
When assets are converted to cash, they could be used to set up businesses that makes money right away.
Assets could be used as a collateral for a bank loan or even sold off to raise capital to startup your business.
Most entrepreneurs don’t like this method because these assets might have a direct connection to their feelings and emotions.
Assets which are inherited and tied to past memories of the past are not conveniently used by most entrepreneur.
This makes selling it off or using it as a collateral to raise up capital so difficult for startup entrepreneurs.
If your business dream is worth it, then you’ve to take the decision to make that choice because if your business really hits success then you could actually buy them back and even more.
Well, if you’re not convenient with this method, try the other 11 ways of getting money to start up a business outlined here.
Aside from running a physical business, you can also consider operating an online business such as a Blog today.
If you’ve ever thought of starting a blog, then discover the 12 Most Amazing Steps To Become A Successful Blogger.
6. Angel Investors Are Good Ways Of Getting Money To Start A Business:
Investors are people who are willing to put money into your business in return for percentage share as a co-owner.
They will gladly invest in your business in return for stakes of ownership in your business.
Angel investors could be wealthy people you know around or those introduced to you through someone who knows them.
Angel investors are often working class professional like Engineers, medical practitioners, lawyers and existing business owners.
These are people who seek to invest into other areas to build their asset and income column.
Investors will demand for a high percentage stake on your business because they know you need their money.
They usually want to also compensate themselves for risking their money in a new business they naturally haven’t tested.
Investors are cool because they help you carry the financial burden of operating a new business.
A popular research shows that most businesses fail within their first 5 years of operations.
Investors will also offer you free mentor-ship and coaching on best ways to run a profitable business as a starter.
Investors help to raise capital for your business and reduce the financial load on you to the barest minimum.
This makes every investor a co-owner of the business even though you brought the idea. All investors share the profits and risk together according to their percentage investment.
Most of the time entrepreneurs seek for investors to enable them spread out their business empires.
Big business names you know today like Amazon, Microsoft, Walmart, Tesla e.t.c all fly with profitable investors.
7. Seek For No interest loans from families and friends:
It’s easier to convince your loved ones to give you a no interest loan, so just give it a try.
These class of people emotionally connected to you naturally wants you to succeed.
Your loved ones wants you to become successful so they will be glad to support your business idea because you will be a burden to them if you are broke and keep demanding money from them.
Present a good business idea to them and demand for an interest-free loan, you might just get some assistance from a few of them.
For them to entrust their money into your hands, you must have been a faithful person when it comes to dealings with money because no body likes waste.
Good past records with money will convince them to easily entrust their money into your hands
8. Apply for Small and Medium Business loans from Government Institutions:
You might have heard about business loans given to small and medium businesses in your country, or maybe you haven’t heard about it, it’s real okay, you can try out some available ones around you.
Government loans are true, they are given to support small and medium businesses to function effectively and promote economic growth.
Keep giving it a try through various government approved organisations and you never can tell when it works out for you.
You’ve all to gain if it works out in your favor, so just keep pressing your loan application buttons.
Please don’t pick up a loan without knowing the 8 Major Reasons Why Entrepreneurs Fail In Business so you don’t run into a huge debt which might become a burden paying back
9. Engage In Business Plan And Entrepreneurship Competitions:
Most people don’t care about entrepreneurship competitions where they will be given an opportunity to display their business model.
Apply for entrepreneurship programs, you might just get selected and get awarded a seed capital to startup your business.
Well, even if you don’t win and get selected for funding, it will give you the privilege to meet positive investors who might be interested in your business model.
All you need to succeed here is to properly package your business plan in a more understanding way where the benefits of your business to the society will be seen and clearly understood.
Crowdfunding is a way of raising money from a large number of people which is usually through the internet.
You can set up a crowd funding platform to seek for financial assistance from the general public.
To succeed in getting cash this way ensure to be very clear in your business objectives to the public.
Nobody wants to put their money in a business they don’t understand, so be simple to quickly get public attention.
Kindly give value in return for their funding, have a compensation plan for there funding into your business idea.
Offer bonuses and stakes in your business to reward possible investors and attract the eye of good investors.
Advantages of Crowdfunding As One Major Ways Of Getting Money To Start Up A Business:
- It help you to test the public’s reaction to your ideas and products.
- It helps investors know your success rate which further influences their decisions to invest more if you seem successful.
- It’s an alternative way of raising money when traditional methods or bank loans seems difficult.
- Crowdfunding could be a fast way to raise up finance with zero upfront fee.
- Crowdfunding will enable you share your ideas and get guidance from expects to further improve your business model.
11. Meet Your Bank For A Loan Capital To Start Up A Business:
Do you know that banks make most of their money from interest on loans given to businesses, corporations, institutions and organisations?.
Why not approach your bank with your business plan showing the income and development model with pay back strategies.
I will advice you to get your business registered, get a recognized location before approaching your bank.
Be reminded that banks don’t give loans to businesses where their is a high risk of failure, with zero collateral.
This covers why we earlier talked about using your assets to raise up capital because banks would require you to present a collateral to access a loan.
So should circumstances make the business fail and you don’t pay back, the collateral would be used by the bank based on initial agreements to recover their money.
To avoid failures as an entrepreneur in business, know how to start an up-and-running business today.
12. Reveal A Little Portion Of Your Business Idea:
Revealing a portion of your idea works well for new unique business ideas, which is mostly advised for uncommon ideas.
This might sound crazy oh yes it does, WHY should i show the world my idea before i launch it.
Okay lets talk about the “WHY”!!!
Will it make any sense to you if that unique idea dies without getting a business expression?
Oh no no, you will feel bad and highly disappointed.
How will you feel if the world celebrate and honor that idea in you mind?
Oh yes!!!, you will feel like a person who just won a jackpot lottery.
So why not do something possible to make your dreams come true by trying all business possibilities available to you.
This method is a magnetic way of getting money to start up a business by attracting partners and positive investors.
This is also another method of getting the attention of the general public to see the business vision in you.
Ensure to get a copyright if the business idea is new and unique to protect your intellectual property from theft.
Giving it a try is worth it because of the miraculous ways it attracts money to your business.
As an entrepreneur, kindly ensure that your business ideas are given the full opportunity to manifest in reality.
ALSO READ: Most Powerful Ways to Save Money Without a Bank
If you have been searching for ways of raising capital to start up a business or means of getting money to start a business, i believe this article would have done justice to your search hunting.
Kindly pick any method of your choice from the 12 fantastic ways of getting capital to start a business listed above.
I hope you succeed in your business journey, feel free to drop a message below at the comment section below and i would gladly respond to you.
You can also discover the 3 Psychological Business Disciplines A Successful CEO’s Must Have today.
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Terrific insights! 👍
Thanks Kolinz, we appreciate your engagement
This post is great, so much insight, thanks for sharing
We’re committed to updating our readers with the best, thanks
Thanks, you’re much appreciated
Thanks, am sure you got value reading this article
No 2 was my own point of interest, great ideas
Yes Odunwo, it’s good to find a partner who has the cash when you have an idea to start a business