Funding Your Money Making Ideas

Funding Your Money-Making Ideas

Without capital, your beautiful business plans may not be carried to completion except if you desire to sell your idea for cash or exchange it for a small holding in the business arising from your idea.

Access to capital and credit is required in starting or growing a successful business. Millions of people all over the world receive loans or grants to start or expand their businesses. You too can raise the capital and this requires knowing the different sources of finance to get the money you need to fund your business ideas.

You can make a choice from the following sources of finance:

   •    Personal savings can be used for takeoff.
   •    Money can be borrowed from relations and friends where possible.
   •    Seek out an “angel investor” among your acquaintances or philanthropists. You can register with websites which link up entrepreneurs with angel investors (e.g http://www.angelstartups.com.ng).
   •    Associations (including religious groups) you belong to, can be approached for financial assistance.
   •    Equipment leasing which provides a loan in which the lender buys and owns equipment and then rents it out to your business at a flat monthly rate for a specified period of time.
   •    Use a written contract between you as a seller and the buyer or invoice purchasing order (I.P.O) from a “ready” buyer to raise fund i.e. “tying up”.
   •    Sell personal assets which include intellectual properties and/or financial instruments such as stocks, bonds, mutual funds, note (IOUs).
   •    Obtain loan from financial institutions such as banks and any other grant agency.
   •    Product or service launch allows you to use few of your products/services for presentation to a few select people in order to get attendees to contribute to your business initiative.