How you can fund that bizz you intend to start
You want to start a kasmall business, ain’t sure which one. But you have an idea, you want to actualise it yet don’t know how you will. You need some money, each business needs ‘start-up’ money which you unfortunately don’t have. So how will you get enough money to make your dream a reality? Today let’s go through five ways through which you can realize this.
- Personal savings.
You can decide to do this single-handedly. This means that the little money you have, you carefully study a business plan and get into it. However, going this way is very difficult (but possible) and takes time before the business grows big. It grows at a slower rate. By going this way you need to be roho juu, sure about yourself and determined. It has it’s advantages though, at the end of the day you share the credit with no one, and credit here means profits, hehee…
2. Family and Friends.
By the way, when you want to start a business and tell it to your family, they will encourage you to go on. Same with pals, they will give you so much moral support. That’s great of them, but now talk to them. Request them to chip in something so that they lessen your task. Agree with them. Some might agree to give you a little, while some will need a legal agreement. Do it, seek legal advice before you agree to a deal.
We have so much money lying in government offices and other NGOs waiting for you. If you walked into that office and said what you want, you’ll definitely get help. Uwezo fund for instance. If you agree a group of your friends with a similar vision, you can have it easy. However, to make maximum achievement you’ll need to market your business idea to the concerned office to convince them that you need their help. They, of course, won’t give you the full amount that you need in starting your business, but what they’ll give you will take you closer to what you need, add it up to what you had saved and you’re on the brink of starting that business.
Like we said above, you have a friend who is also interested in starting a business. You guys can agree, he/she helps you raise your business so that when it picks up, it helps start up his/hers or vice versa. This one needs so much integrity. You need to trust each other so much. Plus, you need to lay down strong strategies and alternative plans. It however is the best and bit easy to do. If both of you agree to co-own the business fully, well and good. However, seek legal advice to make everything clear before the onset.
5. Loans from financial institutions (eg banks)
To get a loan from a financial institution you need to own some asset. Likewise, present a projection of your business, the expected income in a given period of time and make it so solid and convincing. This is the most important part since it gives a clear picture of what should be expected, the input: income ratio that will move you closer to the loan. You need to understand the terms and conditions of the institution before agreeing to them.