SMART WAYS TO RAISE FUND FOR YOUR BUSINESS WITHOUT ASKING FOR A LOAN
You might be surprised to note that there are a million products and services which we should have known about but we presently do not know because their owners failed to run with their ideas.
80% of them will account for lack of fund while other others will scramble around reasons. Annually, entrepreneurs apply for loans but only a handful get these loans. So I if you don’t fall Amon the lucky heads, how do you go about starting up your business without a loan.
Call it the Nigerian “Kobo from many.” Entrepreneurs solicit the funding directly from the public, in large part from people whom they do not know. As a result, you may see something like 10,000 people giving ₦300 each instead of a ₦3,000,000 loan from a single bank officer.
It’s a rather broad term that encompasses several different types of funding from different sources.
Typical sites include; Kickstarter and Indiegogo where the focus is on raising money from regular citizens to fund startup projects or new products—an attractive option when you need expansion cash. In exchange for the investment, investors may be the first to receive the product or they receive something else from you.
Pre-orders are offering a product to a customer that won’t be delivered until some point in the future. In most cases, the customer is required to pay at least a portion of the purchase price when they pre-order.
This a great source of funding for manufacturers and creatives like movie makers, musicians and writers.
You can also set up a pre-order system on your own website using a plugin like that from WooCommerce or even Paypal buttons. This option is workable for people with an active, passionate following for their blog.
The world might be in a mess but there are still angels.
Angels are usually informal business people or high net-worth individuals who are looking for high-return investments.
Some of them are experienced entrepreneurs who have become wealthy from the businesses they own but are keen to invest in new startup businesses as a way of helping the next generation of entrepreneurs.
Get them to invest in your startup in return for an ownership stake in your business.
Which of them will you attempt? Talk to us in the comment section.