You have been thinking of a good business idea and even gone ahead to compute the needed start up capital.
However, lack of finances has been the stumbling block and you wonder whether that is the end of your dream business. Unfortunately for many, the answer is in the affirmative.
But this ought not to be the case. You can still go ahead with the business with less capital than you had initially budgeted for. This may be baffling to may but it is doable.
Here is how. If you are struggling to raise enough capital, Muse over intensely and bring out the best strategy for your business. It is this strategy that will breathe life into your financial plans.
So how can you raise capital to start a business? Look at your source of funding. How reliable is this source and does it offer enough funds to finance your business? If not, then present your business strategy to potential people who you think may buy your idea.
For example, you may present the idea to friends or potential clients who could provide you with credit which you would in turn pay back by offering them your products or services. You may also approach some of the already established businesses and negotiate a partnership.
Let’s presume a company manufactures soft drinks and you plan to start up a refreshment kiosk, it would be easier to present your plan to the company and ask them to carry out promotional work at your establishment on agreement that they will give you some token stock to start up with.
Alternatively, you can divide your business into phases and work on each of them at a go depending on the money you have, Try to avoid incurring unnecessary costs. Then approach a financial institution armed with a good but persuasive business plan that clearly shows that your business is profitable.
All that the banks require is that you table your financial flows by convincing them that your turnover is a promising one.
Again, you raise your capital by selling off your shares prior to setting the business up. Everyone always perceives investments with the hopes of making huge returns though the limitation is that they may not know the ways of going about it.
You can still approach friends, workmates, relatives and family and show them your dream business. Once you realize they are convinced, ask them to contribute whatever little money they can and then sell to them all your shares.
If for example the cost Rwf50, being so little many of your friends will see it a joke, after all, they would have spent that anyhow, and would form there henceforth be willing to offer you assistance to you.
With the above tips, you can start your business not matter how much you have personally. So go on with your dream business.