Business without money is like a jet without fuel to propel theengine. Starting up is quite a hustle for SMEs when it comes to sourcing for funds to run the business and see it grow. Thanks to the power of information, everything is just google away. The rough patch comes in when the entrepreneur has to get to the ground and seek finance. Betting peoples’ money on the promise of the success of your business is quite a risk many would refrain from. But tell you what, business is all about risk and as an entrepreneur you gotta have a thing for risks. Living in the twenty first century is such a blessing. There is soo much opportunity and a million plus alternatives to explore. Here are convenient and sure ways to source for funds for your startup.
Crowd Funding
Without the struggle of moving up and about looking for someone to invest in your idea, join a crowd funding platform. You get to pitch your business idea to a group of investors, share your growth model and the potential of its growth. If your idea goes through, the crowd funders pledge to support the idea, and finance it.
ROSCAs
Pooling financial resources together as a small group, can be a source of finance for your business. Just like merry go rounds, monthly contributions by members can accumulate to a huge amount that can be lend to members at a small fee, which is cheaper than bank loans.
Angel Investors
With your very risky idea that Banks and Microfinances are reluctant to finance, an angel investor could jump start your business. Angel investors usually have huge capital and are willing to invest in risky businesses. They go though the business proposals and select the best candidate. Besides capital, angel invetors offer mentorship and advice to the entrepreneur.
Family and Friends
They come in handy and cheap especially when you cannot wait for a couple of weeks for your loan to be approved or for the investors to send the cheque. Good thing with this kind of finance is the idea of servicing your loan is scrapped off and deadlines can be extended without penalties.
Venture Capitalist.
If your business has prospects, then you will be a perfect cut for venture capitalist funds. Unlike angel investors, venture capitalist, have an eye for details and all too often they will be monitoring your work perfomance, making major decision for your business, bringing in expertise and business experience.
Bank Loans.
Banks have been the the supermarket for debt financing since time immemorial. With a solid business plan showing realistic financial projections and the product and services being offered, you get to qualify for a loan. The financial provision comes as working capital for the business and funding at a fair interest rate.
Personal savings.
That money you  have been putting aside a for a particular project or task can be invested into the business at its early stages. However this money has to be refunded to your savings account as soon as the business has started making profits. Using personal savings to finance your business, teaches you discipline and commitment.
