Strategy is capital

You may have a good business idea and perhaps made some calculations on how much money is required to implement it.

You may have a good business idea and perhaps made some calculations on how much money is required to implement it.

But then you discover that the amount is not close to what you could raise on your own. This could be the end of your dream business.

However, you can still pursue your ambitions despite the meager resources at your disposal. But how?

If you don’t have much money think big and devise a good strategy.

What you need to understand is that you don’t need to have all the money by yourself to start the business. What you need most is brilliant planning.

So, how can you outsource capital to start a business?

Explore the available alternative sources and examine the reliability of each source. Does it bring out enough to finance your business? If not, then draw your dream business plan and present it to potential people who may buy the business idea.

For example, you may present the idea to friends or potential clients who could provide you with credit, which you would pay back by selling to them your products or services. Other ways maybe to approach the already established businesses and carry out a partnership.

For instance, if you have plans to start up a refreshment joint, it would be easier to present your plan to a beverages manufacturer  and strike a deal to supply to you some of its products on credit.

You may also offer to distribute their promotional materials on agreement that they offer you some token stock to start with and pay back in future.

 Alternatively, you can divide your business into phases and work on each phase at a go depending on the amount money you have to minimise costs.

Then think of approaching a financial institution. Clearly explain to them your business plan showing its growths potential. The bank needs your financial flow. Convince them that your turnover is promising.

Think of raising capital through selling off shares before you start.

You could also approach friends, workmates and family members by showing them your dream business. Ask them to contribute every little coin they have as an investment in shares.

Generally, the above is testimony that despite meagre resources, you could still go ahead with your dream business.

 

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