Every startup firm will require sourcing for funds has the business grow the question is how do you get people to support your business idea? Besides this might be a big task because everybody you talk to will ask you one question what is it am getting back in return.
How you can answer that question is to show them your numbers, telling them your idea will work will not cut they need proof and the only you can show them is via your number of sales and customer base.
Moreover, they are different ways to source for funds as an entrepreneur the most important thing is picking the one that you feel more comfortable and shows signs of helping your business and not hurting it.
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Where to get funds for your startup business
Crowdfunding
Yes, you won’t believe it but some entrepreneur gets there funds via crowdfunding, they were able to tell their story and make people believe them with their numbers, client base, future prospect, and timeline. Making the world a better place is easy to say, showing the people providing the funds what they get back in return is your result.
Sell part of your company (company equity)
In business you have to make hard choices, selling some of your equity is one those choice. You cant run a business when you are short on funds, pitching your products to investors and getting them to buy some of your product idea in exchange for company shares.
There is a program on BBC called Dragon Den am not sure if it’s still airing but its something you can have a look at as an entrepreneur/startup to have an idea of what it takes to get investors to invest in your business.
Related Post: Tips on getting business grants in Nigeria
Friends and Family
No matter how bad it’s your family is always your family, and a good place to raise fund for your business is with your family. They know you very well and they want to support you so it won’t be hard to get the funds for you even if they have to borrow you.
Every member of the family want you to be successful so they will always show you their support and if you become a billionaire tomorrow it will affect the lives of your family so it’s a win-win situation
Loan
You can approach a micro-finance bank for a loan for your business, however, you need to be sure on how to get their money back with interest. Some of the banks will like to see your business model, execution plan, client base, timeline and etc you know what they say everybody is trying to save their interest.
Filling the form application is not that had but they will require your company registration details and full signature of some or all member of the board of director in the company.
In conclusion, sourcing for funds as a startup business can be very challenging but giving up on your idea is not an option having to wake-up every day knowing fully-well you are creating a solution should motivate you.
