There are different ways to get money to start a business, and you can not say that one is better than the other, just say that each one is different and you must choose the one that fits your project.
1. Personal money
Assets and valuables that are rarely used, you can
sell for additional capital. To be able to realize the dream business, surely
you need to sacrifice a lot. Not only the cost of living and your monthly
salary alone, some of the assets and valuables that you have also have to
"go”. Look around your house and
make a list of what you have. Quickly do
away with goods that, you no longer or rarely used and have high
selling value. You can sell your old gadgets and various types of clothes, bags,
and shoes through a garage sale. The
washing machine can also be sold and start getting used to washing with your own hands. That way, you can
also get a good enough capital to start your business. Often considered
essential to start a business, the personal contribution will do you a lot of
good.
2. Government support programs
Each government has its own programs to support
business culture, offering training and financial resources for the economic
development of the country.These tasks
are carried out through institutions responsible for evaluating business and
productive projects, to select those that meet the necessary requirements to
access the aid. Most of these programs do not even charge interest on the
capital, or simply do not charge the money if the project meets certain
requirements related to the offer of employment in the locality or contribution
to the development of the nation. The big
drawback of this option is that because it is a public entity, it can take you
quite some time to get your support. Also,
the paperwork is excessive.
3 . Take advantage of corporate grant funds or student
creative programs. The funds disbursed are more than enough to support your
business. The grant money won is more than enough to make your business start.
Currently, more and more companies are providing grant funds as a form of
corporate social responsibility or CSR. These companies, both state-owned and
private, already have their own budget to help people and micro-enterprises.
Typically, these grants are provided through creative and innovative
competition. The amount is quite large, so there is no harm in sharpening your
skills to grab some of this opportunities.
4 Find investors. It is true that getting
funds requires a struggle and that is not easy. Investors are very keen in
considering the advantages and disadvantages. If they see your business has no
promising prospects, do not expect to get capital help. So, it's important for
you to put together a very good and detailed business proposal. Then where to
find those investors? Go to entrepreneurial seminar or workshop. There you will
meet great speakers, but also get
acquainted with fellow entrepreneurs. Which will offer you the opportunity to
chat occasionally, discussing each other's efforts and progress . Who knows one
of the entrepreneurs there could be a prospective investors later
5.Corporate loans and bank loans. There is no
real rule, but most of the time banks do not finance more than 70% of the
investment. The more your personal contribution is, the more the bank can lend
you. The early options above are perhaps the easiest to access and may be the
best for a small venture, but if your project requires higher investments, you
will inevitably have to turn to the financial markets. Financial institutions
are a great option, as long as you are willing to know some basic concepts
about finance. It is very important to know about interest rates and other
important terms. Remember not to go to a single bank, look at the cost of
capital and the benefits offered by several entities and compare. Always
read the loan document very well and if possible consult with a financial
expert because the fine print and technical terms are often confusing.
6. Financing with suppliers. This form of
financing does not work for any company, it is more effective in businesses
engaged in marketing activities. Suppose you are going to start a clothing
marketing business. You make a list of suppliers and negotiate with them to
give you a period of 90 days for the payment of the merchandise. These 90 days
is the time you have to sell and pay the suppliers the debt. If you manage to
establish a good business model, you will manage to work with the capital of
your suppliers, and you will have no problem to maintain the adequate inventory.
7. Family and Friend. There is no harm in
borrowing funds from friends or family. They are your most loyal investors.
Prepare your business plan and have some at hand money. Propose this business to your family or
close friends. Who knows by seeing your sincerity, they will be willing to lend a
little money to help. Friends and family are the closest people in your life.
They will be happy to help. But, do not just go like that and ask for capital. You need to make a proposal so they know how your business plan and
prospects are going in the future. Create a proposal as well detailed as possible. That way, they will be
more confident. If your business is successful later, do not forget to return
their capital to them.
8. Crowdfunding.It
means mass financing, although it is also called collective financing.
It is a collective cooperation to obtain money or other resources to finance
efforts and initiatives. In order for collective financing to be possible, there must be three parts: an
entrepreneur with an idea or project, a group of investors interested in
supporting different initiatives and a Crowdfunding platform that creates the
connection between investors and entrepreneurs. There are many crowdfunding sites that you can use. The advantage you can get from seeking capital
with crowdfunding is that it saves time and money. You just need to create a
neat and interesting concept or project, and actively publish your project link
so that people who visit become interested and finally provide capital.
However, make this crowd funding a source of additional capital only. Because
the returns could be nominal which cannot meet
your expectation.
