By Lilian Wamaitha
We all aspire to be business gurus one day. The main reason for starting a business is to supplement your income as well as to invest in your future and that of your generations.
The naked truth is that every business starts small. Unless you’ve got some family money stacked up somewhere, you will have to start at the bottom.
For this reason, getting capital to fund your business is what deters most of us from living our dreams.
With these easy steps, you can become the Chris Kirubi of the future.
Where to get fund for your business
Ask anyone who has countless business ideas why they haven’t ventured into any of them and their answer will be “I don’t have the capital…”
You are about to find out that capital is everywhere, you just have to know where to look.
1. Begin with what you have saved
There is a common saying that says that you have to put your money where your mouth is.
If you have always aspired to start a business of your own one day, then you would have no problem directing some of your money into a savings account.
Most people who have started successful business have done it solely out of their savings.
If you haven’t started saving, don’t worry. It’s not too late to start. You can start the moment you see the full stop on this sentence.
2. Talk to your friends and family
We all have friends or family members who we know will bail us out of any situation.
These are the best people to go to if you are looking for a little sponsor cash to start a lucrative business.
Utilize these people now before it’s too late.
3. Find a partner who has money
Sometimes having a business idea isn’t all it takes to start a business.
You may have the technical know how and the skills required to execute a good business but you need money to make it happen.
Find someone with the cash you need and make them your business partner.
4. Get you wings to fly from an angel investor
Unless you live in a hole, you have heard of Shark Tank or our very own Lion’s Den. These guys are a perfect example of what we call an angel investor.
This is a person who has a lot of ‘free’ money that they are willing to invest in a good business in exchange for a certain percentage of equity.
They have the potential of giving you the entire amount as long as your business idea is viable and has potential for growth.
Find your own angel investor today.
5. Apply for small business loans
Most of us get butterflies when we hear the word loan. It’s actually not as scary as you think.
Loans and small business grants are good ways to kick start your business. The Kenyan government for instance opened up ways for youths to access government funds to develop themselves through the uwezo fund.
Get more insights about how to apply for uwezo fund.
Take advantage of this government initiative and become your own boss.
6. Advance funds from customers
Did you know that you can actually start some businesses with zero capital?
Customers who urgently need a product or service are willing to pay in advance to get it.
This is for businesses that don’t require an urgent need for an office space or equipment. You can use that money the customers pay to make a profit and start your business.
7. Get Capital for Your Small Business through Crowd funding
This is the most popular way of raising money to start a business.
With advancement in technology crowd funding has gained momentum which is the reason you should try it out.
You just have to put up your business proposal on a website and invite people to invest in your business for a part of the ownership or to give you the money on interest.
There you go. A complete package of how to finally start that business you have been dreaming of for so long. We sure hope that your excuses for not start a business will soon dies out with these easy ways of where to get capital for your small business.
Highly Recommended: 8 Profitable businesses you can start with as low as 5-10K
Lilian is a Communications Officer at Career Point Kenya. Contact her via email at email@example.com