Many young people have either started or would want to start a business someday. A major challenge for many of these aspiring Entrepreneurs however, is funding. So, today is a Guest Blog that will shed light on funding for start-ups.
Funding Your Business The Right Way.
By: Se Lorm (Founder, Seloart)
I have always maintained that capital is very crucial when it comes to running any business. Let’s look at how best you can raise that much needed capital to start your business. Admittedly it is easier when you are already in business.
1. Map out a plan on how to generate income in your business (sales)
2. Take your time to grow
3. Be diligent in all your dealings with your clients and suppliers
4. Keep records of all your transactions
5. Deposit all your sales at the bank
6. Do not carry your cheque book on you
7. Do not spend your client’s deposit on what it’s not meant for
8. Get the right people to work with
9. Be innovative
10. Be ready to sacrifice
When you are able to do all these things you are sure you will succeed in getting that capital. No one will hand his money to you when you have not proven your self worth.
You can also easily raise capital from your clients by asking them to do deposits for their orders if your business model allows for that. This is to ensure that the client is committed and it also helps you not to put too much stress on the little funds you have.
If you are able to follow the 10 steps mentioned earlier, you are assured a finance house is more likely to offer you a loan.
Now there is one thing about loans that we must understand. A loan is not your own money therefore it must be used for it’s purpose. If you deviate from the purpose you are likely to run into debt (Sika emp3 rough). If you misuse a loan, it is very difficult to pay back so it essential you handle it with care and to make sure you honour your weekly or monthly installments.
A loan is not for your consumption. You will have to pay it back so treat it with respect.
These points will help you to control and monitor your cash flow and enable you to acquire cheaper funds( capital with little or no interest) for the smooth operation of your business.
To be continued…
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