You are here because you want to start a business that can support you and your family.
Times are tough and sometimes it feels like no one can help you out of your financial woes because it seems everyone is going through difficult times.
The sad truth, however, is that there is little to no money left in your bank account and pockets to even start a new business.
You have a bit of an idea of what kind of business you would like to start but the hurdle in your way is how to raise money to get started.
Raising capital for new business is usually a tricky affair and a lot of brainstorming is needed.
So can we do to raise some capital? Let us discuss a few pointers below that might help you get started.
Think about what you are good at
Thinking about what you are good at will help you easily start a business by making use of what you already have.
- Do you have any skills?
- What experience do you have?
- Are you equipped with information on a certain subject you can earn from?
- There is always a problem to solve in the world. Do you know anyone who you can help solve theirs?
You can either use your natural-born gifts or skills learned in school. Either way, we all have skills that make certain types of tasks preferable to others.
By having unique skills, you can start doing tasks that will help you generate some cash as payment as you move along through life.
Examples of skills include:
- Cleaning services – If you already own cleaning equipment
- Delivery services using a bicycle, motorbike, or car
- Plumbing and repair services – If you are the type of hands-on person.
Make sure you write down your thoughts in a notebook which will help you in your planning process.
It will also help you organize your thoughts and create a better execution plan once you have made up your mind.
Find the right market for your products and services
You will save a lot of money if you market your products and services to the right people. These are the guys who not only want what you’ve got but also are willing and able to pay for it.
This is an important step which is usually skipped by most people who market their products randomly to anyone which leads to a waste of time and money.
Knowing the right people to sell to, helps you earn your money in an instantaneous manner.
These are the things you need to find out from your target market:
- Who are the most likely buyers of your product or service?
- How old are they?
- What is their gender
- What is their socio-economic background?
Knowing who your market is, will make it easier for both of you to find and deliver the right messages that will entice them to reach out to you.
Explain your business idea to family and friends
We all like brilliant ideas that are useful. If your idea is great then sooner or later someone will give you a listening ear and actually invest in you.
Let’s face it, the easiest people to fund your business idea are your family and friends. They are people who know you best and can vouch for you.
Unlike pitching to investors, you don’t have to prove yourself to your loved ones – you only have to prove your business and what it brings to the table. Its value. They can either give you money in form of a loan or as an outright gift.
Be prepared with all your business details and financial forecasts before reaching out to potential investors. This will help investors to understand you better and trust in you.
Apply for Start-Up Competitions
Start-up business competitions allow new entrepreneurs the chance to earn seed capital. These competitions usually give away huge sums of money for great ideas in various industries.
Participating and winning in such competitions also give you a slight boost of fame that will help during your marketing process.
Be on the lookout for these types of competitions in the newspapers and by searching manually through google.
Incubators and Accelerators
Incubators provide business founders an opportunity to learn skills on how to manage their businesses.
Accelerator programs usually operate within a certain timespan in which companies are paired up with experienced mentors who will help them build their businesses.
This is a process of wisdom for it will enable you and your team members to avoid problems faced by new companies along the way to success.
I know a couple of people who went to an incubation center and got connected with investors who ended up funding their businesses.
You have a better chance of getting funding from venture capitalists if you go through these programs.