How to raise money for small businesses

Raising capital has been seen by intending small and medium scale entrepreneurs as one major challenge in this part of the world. Commercial banks do not easily give loans to small start-up businesses mostly because they cannot meet the requirements.

In this article, I am going to be showing you alternative means of raising capital for your small business.

Personal savings: if you are a worker at the moment or you do something that brings you constant money, you can start saving a part of your income consistently over a period of time. This is for people who have the mind of starting a business in the nearest future.

Sales of Personal Assets: If you have done your due diligence check and you have a well planned business in mind, you can sell a valuable asset like land to be able to raise the money. Point of caution; make sure you are very sure of the business idea before selling your asset.

Family assistance: if you are serious about starting a business, most especially when you have a well written business plan, you can meet a relation of yours that is financially buoyant to assist. Your seriousness will make the process faster.

Loan from friends: If you have a friend that can help you, ask him/her. Tell her when and how you will pay back the money.

Gratuity and Pension Benefit: If you have retired from active service, you can use your retirement benefit to start a business, instead of using it to renovate your house. This way, you will not depend on monthly pension to survive.

Receiving deposited against Supplies: you can ask for money from your clients before you provide the goods/services. Most times, it is 70% upfront that is if you have business integrity.

Group contribution:  You can join a group contribution that is locally known as “Osusu”

Loan from financial institution: some financial institutions still gives loan to small and medium scale businesses, when you meet the conditions. Microfinance banks, venture capitalist and quick loan organizations.

Make sure you have done every other things right before moving ahead to get money for your business.

To your you success!

Felix Aigbonohan

Business & Personal Development coach

Xterics Resources®| RazorEdge Coaching

www.maximumperformancecoach.com.