TEN WAYS TO RAISE CAPITAL TO START YOUR OWN BUSINESS

By Samuel Asante, April 2, 2020

1. Savings: It is prudent to start saving towards your vision. Many people complain that their salaries or income is not sufficient so they are not able to put money aside towards their aspirations in life. The truth is, if you don’t make it a habit to save something small no matter what happens then you will not be able to save even when your salary increases. This is because it takes discipline to save so make it a habit now if you have not started yet. If you are able to do that it will help you to start the business you have in mind with the little you have. Bear in mind that it is very difficult to save, unless with discipline and determination. It is good to start saving ahead of your project

2. Friends and Family Members: If you want to start a project and you do not have enough capital, it is okay for you to contact your friends and family members who are in the position to help you. Some friends are more than brothers and sisters, talk to them in your time of need. Friends and family members who are not ready and unwilling to assist, don’t force them, but deal with those willing to help. You can also contact some of your church members. May God bring you help when you need it.

3. Find a Partner: Getting a huge working capital is not easy to come by these days, it is prudent and for a young entrepreneur to look for a partner to raise more capital. This can be at the beginning of the business or at the middle when things get tough. Be careful about the kind of people who come on board as partners, because some have very bad intentions and can use other means to reign, and destroy your business. It important to seek character reference about potential partners before final agreement is signed.

4. Sale of Assets: Assets are resources that can be used to generate income. Assets are properties of a person, organization, or country that could bring income when properly worked with. There are two types of assets, fixed and current assets. Fixed assets are those that can last for more than a year, for example, furniture, car, building, computers, machinery etc. Current assets are also those that can last up to a year. For example, cash at hand or physical cash, bank deposit or money at bank and any other thing which can be used within a year. So to generate income to start business if you have any of these items, it can be sold for cash as capital.Note capital does not only refer to physical cash alone. It also includes above mentioned items. So if you already have some of these, it may serve as part of the capital, you just sell some and add the cash to the items, then take off.

5. Credit Facility or Grant: Credit facility is the same as loan which will be paid back with interest. And grant is money given out with no interest. Governments and other organizations like none governmental organizations sometimes give grants to support entrepreneurs with less capital. You can apply for such facilities to support your business activities. It is normally not advisable to begin business with a loan but if there is no any other option and you have to take the loan then you must be careful about the type of loan you take. If you have no knowledge of any financial transactions, it is better to consult an expert to help you find good credit facility.