Many folks have an idea of what to do with their talents but feel they need so much money to launch out. You don’t need a lot of money to start. What you need most is a dream and a vision, then back it up with a plan and scale it down to where you are. When you scale down your beginning, raising money for your business start-up is not as difficult as you may imagine.
Typically when starting a business, you tend to look at renting a shop, buying equipment, hiring staff, and maybe a car or bus for transportation. You are jumping the gun. You don’t need to start that big. Apart from the fact that raising funds may be a challenge (the banks may not be as enthusiastic with your untested idea as you are), as a beginner, you are bound to make mistakes. That is part of the learning process. But the snag is, mistakes cost money. If you start big, you make expensive mistakes and may find it difficult to recover – going back to the same people to raise another round of money.
You can start from your living room, garage, or boy’s quarters hence you don’t need a shop. In the beginning, it is wiser not to hire anyone yet until you generate enough turnovers to support that overhead. Be a one-man squad and learn as you go along.
As for equipment, you can improvise or rent. That way, you don’t need a heavy financial outlay to purchase equipment. As your business grows you can look into expanding, possibly hiring others, and maybe even getting an office where you can all work together. This will make even more sense if you find your business in a position where you will need to be visited by outsiders that may be looking to hire your services.
In raising money for your business start-up, your best bet is your savings. Save up the amount you need to start small. If you get help from friends and family, all is well and good, but do not bank on it. Even if you are to approach friends and family (someone said fools) for seed capital, you make a more compelling case if you put your money where your mouth is, by putting up a substantial portion of what is required, others may be more inspired to chip in.
Aside from saving, another way of raising money for your business start-up is by disposing of what you no longer need. There are websites where you can post classified ads in Nigeria, the United States, or any other country depending on where you live. There is stuff you own that you no longer need which others are ready to pay for. It could even be items you bought but never opened. This may also be your second car or old equipment you no longer use.
When you have a clear idea of where you are going, you can always find a way in raising money for your business start-up. Where there is a will, you will always find a way.
