FUND RAISING: How to Raise Fund for Your Business

In business or life success, everyone who has arrived had to start from where they were with what they had.

                                            IMGBIN.com

Business Capital

Business capital is an asset available for use in the production of further assets. I.e., working capital; according to Wordweb dictionary, wealth in the form of money or property owned by a person or business and human resources of economic value. 

Where or How to Get Capital

Do I hear someone asking where to get capital? Is capital actually the first port of call starting a business?  At this point, it will be good to understand the concept of 4Ms. The four major resources in business are:

Man, money Material and machine. In all, the most important is Man power; why? Because man controls or manages all other resources, in my next article I will exhaustively discuss 4Ms to broadly our mindset for business imaginations.

 Where to get the capital

Where or how do I get capital rings in most intending entrepreneurs mind, yes! Is normal, but it is abnormal when it stays longer than necessary in the mind of people starting or hoping to start a business, it becomes procrastination.  Keep your fingers cross, because I’m here to show you that secrets you agitate for.  Just ease your mind to learn and apply the principles that best for you.  You can adopt one of more of the principles.

Start with what you have

Don’t procrastinate, how do you start that business you are intending? As much as possible start with what you have. Don’t despise the day of little beginning. You can start with the service. Rendering most service most times require little or no money, offer the service and save some money with which you can fund your dream business.

You can also collect goods on credit. It is known as sales on return in the business world. In sales on return, you will need the following to excel;

·        Integrity

·        Effective network i.e., your relations, your acquaintances, your friends and so on.

To talk more of this, you don’t need to purchase the entire equipment, look at the ones you cannot do without and get only those. You may also not need a shop or an office for a start, your most important need at this point are customers so  if you can get them without a business premise that will be great, that will save you rental cost.

Note: “The first year, as I didn’t have much capital, I did everything myself, which kept my overhead low.”- Li Ka-shing 

source: china daily

How to Raise Fund for Your Business

How you can raise fund for your intending or existing business i.e., sources of fund:

·        Personal savings: you can work for others over a specific period, save and invest the money on your own business

·        Sales of personal assets: you can sale personal property like car, land etc. and invest it in a well-calculated business. My friend did after my advice; today he celebrates that single bold step he took.

·        Donations by friends or family:  you can as well get family or friends to donate  or contribute for your business, is all about making them see how profitable your intending business is, just the way will tell them to help us get a white-collar job. 

·        Get goods from suppliers (credit)

·        Get customers to pay in advance

·        Sell shares of the venture

·        Government grants: especially, for those in the agricultural sector and product or service export.

·        Angelic investor: you can as well attract an investor or a partnership that could sponsor your business idea.  

“To win big, you sometimes have to take big risks.”- Bill Gates

Read: What You Should Know About Family-Owned Businesses.

  How to Invest in Your Career if you cannot own a business 

Personal Finance

It is important to note that your personal finance and business money should be clearly separated. The business money invariably belongs to you, especially if you are the sole owner; however, it is wise to treat the business as an entity of its own. Don’t keep your hands into the business purse at your own wish. There should be due process in spending the fund of the business, accountability is a must if you wish the business to grow.

Managing Your Personal Finance

For a second, imagine what you go through to get money, all the energy, patience, effort, time persistent and lots of prayers. After going through all this stress, it is wise that you take absolute care of your hard-earned money.

Our Society and Money

Our society believes that if you have money, it most show in the type of clothes you wear, the car you drive, the house you live in, the type of restaurants and hotels you visit, etc. the wrong assumption here is that, how much you spend determines how much you are worth.

Note: “if your expenses are more than your income, your upkeep will be your downfall. “

On the contrary, the truth is, what you save and invest is the true representation of how much you are worth. Your worth is not determines by how much you spend, how much you saved in your bank account, but how many investments you have.

Note: “Don’t spend your savings for your upkeep.”- Kingsmond Ehimare

Note: “Great achievers are driven, not so much by the pursuit of success, but by the fear of failure.” – Larry Ellison

You don’t make money by spending money; you make money by saving and investing money.

Is very much advisable that you depart from reckless way of spending money and cultivate good spending culture, which is referred as;

Wise Spending Pattern

·        Spending less than you earn, save some.

·        Buy deliberately or by budgeting not on impulse

·        But because you need it not because it’s cheap

·        Buy what you need not what you want

·        Exercise the discipline to cut off some expense when the money is not there, especially on luxuries.

·        Avoid buying consumables or depreciating assets on credits

·        Have  a budget and spending plan before the money you expect gets to you

Managing Money is An Act

                                            creditcanada.com

One thing you must bear in mind is that, managing money is a deliberate act, the more you practice the better you become. Constantly practice the above mentioned, you will experience and enjoy tremendous increase in your finance.

Note: “People buy what they don’t need, with money they don’t have, to impress people they don’t like.”-  Gorge Fooshee

“Don’t compare yourself with anyone in this world. If you do so, you are insulting yourself.”- Bill Gates

Read: How to Take Your Business Online

See you on the other side of the world, where businesses and careers rule ….

Feel free to consult me on any business issues…we are capable of resolving…