Connect with us

Startup Guide

Four simple ways to get capital to start a business

As an entrepreneur looking for start-up capital, you have to be flexible, remain positive and stay vigilant

Published

on

Investing your personal cash is a good move for a start-up since it will easily make other investors more comfortable knowing you have skin in the game.

Start up entrepreneurs always have big dreams of how their company will scale up, how they will manage it and the amount of profit they are likely to take home at the end of the day. However, before all this is realized, the elephant in the room is always capital to jumpstart the idea.

Entrepreneurs can learn how to raise such capital through a process that obviously requires more creativity and out-of-the-box thinking. Business model, projections and how best you can sell yourself to potential financiers are crucial when looking for funds because the partners will only invest in your ideas they are convince will give them a return on their investment.

As an entrepreneur looking for start-up capital, you have to be flexible, remain positive, and stay vigilant to realise impressive outcomes since this will answer the question on how you intend to eventually return capital to your shareholders (including yourself).

Below are four simple ways to get started:

Small business loans: Going for loans in financial institutions when coming up with a new business is a potential option any entrepreneur should consider if you do not have any credit. To successfully get such borrowings, what the financial institutions will require from you is good business plan, profitable projections and some of their own money in the game.

It is therefore important to set realistic objectives that can deliver achievable goals within the set period of time because when that time elapses, the banks will want to start getting back what they invested in you.

SEE: How to make it BIG in business like Steve Jobs
READ: Why start-up entrepreneurs need a coach

Friends, family: Even though this sounds risky on your personal relationship should the business fail, funding from friends and family has been for a long time popular and effective way to raise initial capital for a business. However, at this point it is proper to be franc enough to borrow adequate amount structure this type of funding as a high interest loan for like a period of one year. After this, you can develop some additional pitch material if you want to go after big money for example you can come up with your website to market and let people know what you are dealing on.

Engage angel investors: angel investor provides more favorable terms compared to other lenders since they invest in the entepreneur starting the business rather than the viability of the business with their key focus being to help start ups take their first move rather than possible profit they may get from the business. they therefore provide better grounds on which you can build your new business as an entrepreneur.

Start it yourself: Most entrepreneurs these days opts to fund their projects for a significant amount of time until more formal funding opportunities become realistic. This can be done by injecting your savings and zero interest credit cards to leveraging other personal assets. Investing your personal cash is a good move for a start-up since it will easily make other investors more comfortable knowing you have skin in the game and is determined to keep it to the expectations.

NEXT READ: Seven ways to make your business more successful 

Cavin Odhiambo is a reporter with Business Today. He has passion in dealing with socio-economic and political matters . You can reach him on kevinodhiambo3@gmail.com

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Opinion2 days ago

All-round approach will prevent tax offences and financial crimes

Kenya has become increasingly exposed to illicit products and counterfeit goods, hence the need to take an all-round approach towards...

Economy2 days ago

Kenya’s GDP to hit 5.7% despite debt burden

Despite a debt increase, Kenya’s GDP is expected to reach 5.7% up from 4.9% last year, according to ICAEW’s (the...

NEWS5 days ago

DPP seeks to withdraw forgery case in Sh500m Karen land suit

The Director of Public Prosecutions (DPP) has requested for withdrawal of the case against Guy Spencer Elms, the lawyer accused...

Politics5 days ago

Chebukati ‘out to fix Chiloba’

When Judge Stephen Radido delivered his ruling on Thursday setting aside IEBC chairman Wafula Chebukati’s decision to send the CEO,...

Health7 days ago

Pharmaceutical firm backs social investments in healthcare

Boehringer Ingelheim, one of the world’s leading pharmaceutical companies, and Ashoka, the world’s largest network of social entrepreneurs, have held...

Education7 days ago

MKU ranked among 10 best universities in Kenya

Four local private universities in top 10 ranking of universities in the country.

NEWS1 week ago

4 MultiChoice traders win trip to watch World Cup in Russia

They will have an experience of a lifetime touring Petersburg, the Vodka Museum and enjoy a private boat tour along...

Bt Intelligence1 week ago

Inside the boda boda millionaire industry  

In small doses of Sh50 and Sh100, Kenyans spend Ksh600 million daily on motorcycle services

Education1 week ago

Daystar University sacks vice-chancellor

Striking students had decried mismanagement of funds and quality of education

Politics2 weeks ago

Battle for Machakos governor heads to the Supreme Court

The court faulted the IEBC returning officer for using an excel spreadsheet to record results instead of Form 37A

Advertisement

Trending