One situation that gives entrepreneurs sleepless nights seems to be the issue of raising funds for their business. Sometimes, entrepreneurs may have viable ideas, expansion plan and other projects that will increase the profitability of his business but lack of funds may be a major set back for him.
Imagine you were promised a million dollars as a loan to finance your business, I am sure you will tabulate how this money will be of great leverage to you. I am about to share with you three sources of funds.
Each of these sources has its own strength and weakness, its own procedure and process. Having said enough, let’s proceed with the main issue on board.
Three Source of Funds You Can Access To Finance Your Business
1) Family and friends: This is always the first point of call for any entrepreneur seeking funds. It is so because family and friends will always be willing to help those who they have personal relationship with. Family and friends will always give you money blindly if you are trustworthy.
2) Private individual investors (Angels): Approaching private investors otherwise known as angels is an option you might want to consider when raising fund to finance your business. Angels are rich individuals that use their wealth to encourage young entrepreneurs with viable business ideas in their community. If you have an angel in your community, you can consider taking your business idea to them. Example of such is Bill W. Gates encouraging young entrepreneurs in Seattle.
3) Government Grants: In some states and countries of the world, the government of that region maps out a certain amount of money to encourage the development of small and medium scale enterprises. This money is given out as grants to those it may concern. Governments grants can be a source of fund for you if you are a citizen of that region and you are able to fulfill the stipulated requirements.
In conclusion, I want to state categorically that lack of funds should not be an obstacle to achieving your dream of building a successful business. You can utilize one or more avenues of funds listed in this article to finance your business.