How To Get Money To Start Your Business
One major key that would determine your success in the world of money and business is your belief system. Your belief is what determines your reality in life. For you to become rich and wealthy, you must first believe in your ability to make it happen. Whatever you believe to be possible would ultimately be possible. And whatever you believe is impossible would be impossible. It is always to you according to your belief.
This is very true in every area of life, especially in your quest to raise funds to start your business. You must believe the money you need to start your business is available and that it is out there waiting for you.
Your mind is so designed that you have a tendency to ignore or block out any information coming to you that is inconsistent with what you already believe to be true, whether or not your beliefs are based on fact or fiction.
“All riches have their origin in the mind. Wealth is in ideas.” — Robert Collier
One fundamental truth you must embrace in your pursuit of wealth is that wealth building starts on the inside, and not on the outside. Every of your action has its root in the way you think and what you believe.
Your success in raising funds to start your business starts from the inside. It starts from our thinking and belief. You must believe that you will get the money you need, because there is more than enough money out there.
The law of abundance says we live in an abundant universe in which there is sufficient money for all who really want it and are willing to obey the laws governing its acquisition.
The essence of this post is to show you how to acquire the money you need to start your business. But it is your attitude toward abundance or scarcity of money that will ultimately determine whether you lay your hands on the money you need to start your business or not.
It is therefore imperative for you to believe that there is abundance of money out there. And that you will get the money you need to start your business.
Here are five ways you can explore to get the money to start your business.
1. Your Own Savings
The best way to fund your business is your own personal savings. If the desire to start your business is strong enough, if you’re really passionate about it, the will to save money would not be lacking. Open a savings account today and start saving at least 10% of whatever money you earn. The discipline to save money is a proof that you possess the needed character to manage the business once it gets started.
“If you cannot save money, then the seeds of greatness are not in you.” – Clement W Stone
2. Sale of Personal Assets
What personal assets do you have that can be turned into cash for the purpose of financing your business? Selling your personal assets to raise money is a great indication of your belief in your business idea. This could be your second car that you rarely drive, or a box of jewelry, stocks, bonds and what have you? Many successful businesses have been started in this way.
3. Customer Financing
This is one method of funding businesses that I really like. This approach to starting and running businesses takes the burden of sourcing for funds off you. The customers pay for the product or service in advance, prior to delivery.
All you would need to do is market your product or service to prospective clients and ask them to make advance payment once they are interested in what you are offering. You can request up to 75% deposit on an order. The deposit can then be used to buy necessary raw materials to produce the goods. The balance of 25% is paid when the goods are delivered.
4. Supplier Financing
Trust has been defined as social capital. If you have a good credit rating and track record, there are companies out there that would be willing to supply you with goods and service to sell to your customers.
Most of the time, all you might need to get started and enjoy such facility is someone…a guarantor who can stand as a surety for you. Pick the goods from your supplier, markup the price, and then go sell to your customers. Keep the profit, and pay the supplier whatever is due and you’re in business. Rinse and repeat the process, before long you’re smiling to the bank.
Your success with this method depends on your ability to demonstrate great strength of character and make the supplier see you as someone who is trustworthy and pay whatever he owes.
5. Sell Equity
To raise money for your business you might need to sell a percentage of the business. This is called equity financing. It is about partnering with someone who can finance the business. Each of you brings something to the table. You have the business idea and he or she has the funds to kick-start the business. You only need to give up a certain percentage of ownership of the business for money. The equity investor receives a percentage of future profit from the business, based on the percentage of ownership purchased. So go out there and share your business idea with people who could invest in it. You could also approach venture capitalists.
Venture capitalists are people who invest in people’s ideas. They’ll provide you with the needed funds in exchange for a certain percentage of your business. The challenge most of the time is the share of business’ equity they would demand, this could be well beyond what you would like to give out.
6. Debt Financing
You can also borrow the needed funds to kick-start your business. This might not be the best place to start your hunt for funds. Borrowed money comes with the additional burden of interest.
Businesses that rely heavily on debt financing are described as highly leveraged. There are so many ways to access loans for your business idea.
1. Friends and Family Loans. Starting and running businesses is always a risky adventure, as a result banks are not always willing to lend money to start-ups. Except there are proofs that you have capacity to repay such loans. But your friends and family members are people who are interested in your success. They are willing to take risk and provide you the money you need to kick-start your business on the
platform of relationship.
2. Bank Loans. Business owners can borrow money from the bank or other financial institution to kick-start their business, and then pay back over a period of time at a set rate of interest. You too can approach your bank for help. If you have good track record and credit rating your bank should be willing to assist you with the needed money. Though, your bank would most likely ask for collateral.
To Your Prosperity
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