7 ways to source for capital to start up your business

7 ways to source for capital to start up your business

Almost everyday people generate so many lucrative business ideas that they really wanna start up immediately but they mainly have issuses and probelms with coming with a specific amount that is needed as a capital to start the business with. Sourcing for capital for a new or old business is quite difficult most especially here in Nigeria where the economy is very unstable and unpredictable. Here are 7 ways one source for capital for his/ her business:

1. personal saving:

You can generate capital from your personal savings i.e money that you have been saving up for sometimes in order to start up something with it when the money must have reach a certain amount.

2. Bank loan :

You can gather capital from the bank i.e getting a loan from them but they are so many processes and conditions involved. First of all ,you have to share your idea of business to them so that they can ascertian if the idea is profitable enough for them to risk lending your money. Secondly, you must have a collateral before you will be granted a loan from the bank i.e something that they can hold on to if you don’t pay back as promised or when due and also remember that you have to pay them back with interest based on their interest rate.

3. Angel investors:

These are entreprenuers who sponsor and fund business ideas with their personal money, in order to help start up their ideas if the idea is good enough but they do so with some conditions depending i.e there must be some sort of agreement between the two parties.

4. Cooperatives:

One of the best ways to generate capital is to collect from cooperatives in which you belong to . Cooperative is a body of organisation with members who contribute money monthly, weekly or daily at the end, it will be given to the person that is due to collect at that moment and the person will still pay back with a little interest and it goes like this for everybody in the cooperative.

5. Grants:

A grant is a stipulated amount of money given by the government,organisations or an individual, to help business owners fund and promote their businesses . Maybe a citeria, requirement, qualification or even a presentation might be requested to ascertain eligibility of those that will be given the grant.

6. Crowdfunding:

This is a process by which one sell their business ideas online or offline and someone can buy the idea and fund it with an agreement with the idea owner.

7. Selling of assets:

You can also sell your valuble assets raise capital for your intended business too.

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