Last week, I discussed strategy as capital and dealt on how a good strategy can help one to raise the necessary capital to start a business.
Now, let’s look at how to raise more capital without increasing start-up costs.
One important thing I highlighted last week was that the need to start small to minimise operational costs while ensuring that all key components needed to operate efficiently are in place.
If you need business premises to operate from, you initially do not require putting in rent immediately.
Convince the landlord with a building in a strategic area to provide it to you on condition that that you have to incur the costs of renovation among others.
Here, you need to have a timeframe, show the landlord the benefits of such an arrangement or even partnership through provision of shares.
On the other hand, many people have assets for domestic use that may be derelict including refrigerators, chairs, and so on. You can convince them to either lease them to you or offer something else in return.
Interestingly, many entrepreneurs worry about taxes that of course add to your expenditure though it is wiser to pay taxes to legitimize your business and operate more efficiently.
So how can you a small business get through this?
Well, the government requires revenues to drive the country forward as well as provide you with services, hence the need to pay your taxes on time.
Think of involving the manufacturers of your products or services- For instance, agricultural products. Look at a way you can liaise with fertiliser manufacturers or suppliers at a discount and pay at an agreed timeframe.
A good approach aimed at raising capital would help you to involve many people in your business start up and once they become part of it, they would facilitate its growth. Ultimately, you