Funding a business have been regarded as the major challenge facing enterprenurs world wide. Many have had problems thinking through the clock on how to generate money to fund their businesses. This write-up will focus on how to use other people money to fund your Business. The following are such avenue:
Family and Friends
This is a main medium of generating funds for a business that is often ignored by many. One will need to present his business plan to his friends or family explaining his cash flow and the need for the funds if it was an existing business.
Most enterprenurs are afraid of taking bank loan because of the high interest rate but it is a good source of fund for existing businesses with high turn over rate and predictable cash flow. Although, collateral or track record of banking with the bank might be required from costumers before loans are approved.
A lot of enterprenurs ignore government funding, not knowing that it's represent a good source of funding because they don't usually attract interest rate. They usually sufficient to support small and medium scale businesses.
Local cooperative societies represent a good source of funding for business too because their interest rate is always low and members are often allow to take 3X or 2X their savings. This cooperative loan can be used to generate finance for both new and existing businesses.
Sales of property
Selling off liabilities to invest in a business is one of the easiest way to raise funds for business. At least these properties are converted to income generating ventures. Therefore, if you are dreaming of starting a business and funding is the challenge, look around you for properties that are actually liabilities ( not generating money) and convert them to assets.
Thank you for reading my write-up.