HOW TO RAISE CAPITAL FOR YOUR BUSINESS

 

The largest challenge that entrepreneurs confront when beginning or expanding a firm is raising cash. Some young businesses fail because they run out of money. As a result, acquiring money for a firm through fundraising is a crucial survival skill for entrepreneurs. Without effective fundraising techniques, even the most creative and ground-breaking ideas would vanish overnight.

 

@amrisonblog is here with few tips to help you obtain capital to launch or expand your firm.

1.       USE WHAT YOU HAVE NOW.

There is a good chance that no one will initially share your enthusiasm for your company concepts, thus, you will need to start with what you have and put your money where your mouth is. That is exactly what Sara Blakely, the creator of the well-known women’s underwear company, Spanx had to accomplish. After several attempts to acquire money for her original company concept of body-slimming trousers, the majority of the individuals she spoke with either rejected her idea or predicted that the items would never be successful. She duh into her money and spent the full $5,000 in her account to launch Spanx in 1998 without any chance of outside assistance.

The same company that some once said would never succeed is now valued at over $1 billion. This company has never received a single penny from outside. You may need to take a stance for yourself and make sacrifices for your business if your ideas are truly exceptional.

2.       MAKE FINANCIAL WEALTH OUT OF YOUR SOCIAL CAPITAL.

It is time to start turning some of your social capital into financial capital for your firm once you have depleted your personal savings. The worth of your personal relationships is what is known as the social capital. It originates from friends and intimate acquaintances, present and previous co-workers, old neighbors and classmates etc. These are those with whom you have a social or emotional connection. They are more willing to listen to your views than complete strangers because of the bond.  They will also be your first real supporters and admirers. This is the precise plan that was employed by Chinese entrepreneur Jack Ma to launch Alibaba, the world’s largest e-commerce company.

 

3.       THERE ARE SEVERAL GOVERNMENT PROGRAMS, INITIATIVES, AND ORGANIZATIONS THAT OFFER GRANTS.

 

Subsidies and low-interest loans for all types of enterprises, but only a few are aware of them. Government often employs these funds to promote and support entrepreneurship, investment, innovation, research and economic growth in a certain sector or region.

 

4.       STEER CLEAR OF CONVENTIONAL LEASES.

Conventional leases are typically costly and constrictive.  By avoiding the traditional lease           completely and choosing a temporary office space such as those provided by Bond collective, you may save much needed money. Along with saving money, you will be in a better position to change the size of your workshop as your company’s needs change.

 

We hope you found these tips useful. Please kindly subscribe to our blog to get more updates.

 

BY ADEGBORO DAMILOLA