They are several ways you can fund your businesses. We have already mentioned them above – Loans, grants, investments, OPM (Friends & Family) and your savings and crowdfunding. It can be a combination of one or two of the sources.
From my experience, there is no right or wrong source of funds. However, I always advise that you should be careful when it comes to taking a loan, especially if you are just starting your business. Credits have a way of putting you under some kind of undue pressure that you need to avoid as a startup. Instead of focusing on building your business, you will be spending your energy and strength on trying to meet up with a loan repayment plan.
However, this does not apply to all the business. If your business is sure of having paying customers, or you have stricken an agreement with your customers already. Such as a contract to supply a product after which you will be paid. A loan can be beneficial.
Every other thing being equal, I advise that loan be your last resolve. Don’t rush into taking one.
From my experience, people are more likely to fund the person or group of people behind the business than the business itself. As you work on your business and position it for external funding, don’t forget to work on yourself as well. Every investor or lender knows that poor business owners can ruin a great business idea. So build your capacity and always demonstrate that you can start, develop and grow your idea successfully.
Every business is as successful as its owners.
You can always work with a team to complement your inefficiencies. It makes a whole lot of sense if one or two members of your team have track records of winning funds. The easiest way to get funding for your business is to get the fund first.
Invest in your social and integrity capital. If people know and trust you, they will trust you with their money and when they do. Do not breach the trust.
If you are a man of faith like me, don’t forget to depend on the Holy Spirit for guidance.
But thou shalt remember the Lord thy God; for it is He that giveth thee power to get wealth that He may establish His covenant which He swore unto thy fathers, as it is this day.
Deuteronomy 8:18. And If God doesn’t build the house, the builders only build shacks. If God doesn’t guard the city, the night watchman might as well nap. It’s useless to rise early and go to bed late and work your worried fingers to the bone. Don’t you know he enjoys giving rest to those he loves? Psalm 127:1 -2.
Do you have any other ways that you raise fund for your business? We will be glad to learn from you; you can share on the comment session.
What topic would you love to read from me? Let me know at the comment session too. You will be glad to write about what you like to read.