STARTUPBIZHUB

How to Get Start up Capital

Starting a business is not a joke. It requires time, effort, and most of all, money. Looking for the capital for your business is also a difficult thing to do. There are many ways to raise capital but you have to prepare a business to convince investors and lenders that you are worthy of having the money.

Starting a business is a tough thing to do. Admit it, especially if you have to start from scratch and do all the things.

You have to look for employees, office, build a name and get the trust of your clients. Indeed, challenge is everywhere. But the greatest of them is how to get a start up capital.

Lucky for you, there are a lot of ways to raise capital. However, you need to have good negotiation skills and strong determination to really launch your business.

Tips on how to get a startup capital

  • Know your business. To fledge in a business, you have to know what the business is all about. Most especially, you have to know how to manage if properly.
  • Research a lot. Look for ways on how will you make your business click and the start up capital that you are about to borrow increase in folds.
  • Show a good business plan. A well-made business plan tells your investors or lenders that you’re really serious with your business. Ways to raise a start up capital

Now that you know what to do to obtain a start up capital, let’s talk about how will you actually raise your needed money. Here are some ways to have it:

Bank Loans

Banks and other similar financial institution provide small business loan programs to help entrepreneur start their own business. To get a solid funding from banks, make sure to present a realistic and attainable business plan. You have to convince the bank that you’re worth the loan and that your business will really make money.

Tip: To impress the bank further, have a good credit rating and if possible, have a co-signer in making the loan.

Family and Friends

This may sound too familiar, but yes! Most people go to their families and friends to borrow money. Just make sure to treat this relation as a professional one. Plan and make sure that you will repay them on time and, of course, with an interest rate.

Angel Investors & Venture Capitalists

If you want to go for a bigger business venture, then, angel investors and venture capitalists are what you are looking for. However, their expected returns are in form of acquisition, stocks, or IPO.

Like banks, angel investors and venture capitalists look for business plan before they invest in your business. This is an assurance that you are serious about your business and that you can execute what you have planned for.
 

<< How to Find Angel Investors and Get Funded
What is Venture Capital >>

13 Comments

  • Uazapo said on October 18, 2009
    Hi It's my pleasure to get all this information with regard to funding. I will try to get a sponsor.
  • michael lehenbauer said on December 11, 2009
    Looking for funding
  • JOSEPH NJUKI said on January 18, 2010
    I would like to venture into chicken and rabbit rearing within my compound but would need some form of start up support who do i speak to. J. NGANGA
  • Tiffany Musterman said on January 27, 2011
    My business I'm trying to open will bring job openings and a much needed activity for children in the community. I want to open a indoor amusement and entertainment to the community bouncing houses water slides and inflatable game with the potential to expand with a go cart track etc this will be located in Gulfport Ms. I have a location in mind that is a real hot stop with a lot of traffic. But I need start up money........Thank you Tiffany Musterman
  • Raphael ipyana. said on April 8, 2011
    Hi, am a Tanzanian business youth have started restaurant and milk cafe in morogoro region but have failed a little anybody wish to help me should please contact me through,+255752050453 . I lack about 1050 $ thank you while waiting for urgently response.
  • Venture Investor said on August 30, 2011
    We in Venture Investor have capital to invest in different type of businesses Early-Stage, Start-up Ventures, existing companies and expansion of investment projects with immediate funding. Open to long term business partnership. E-mail ur BUSINESS PROPOSAL with Detail Analysis to venture.investor2020@gmail.com
  • mosses loiruck mollel said on October 17, 2011
    hello i am looking for business partner to invest to my plot at lake manyara area. anyone have cash you are welcome, regards mosses
  • Chadd said on April 24, 2012
    I am looking to open a novelty shop in dutchess county new York finding merchandise is not a problem. The problem is how much money is needed up front and will I lose money my first couple of years
  • Sapam Meiraba Meitei said on June 27, 2012
    I want to set up an organic farming research unit and start organic farming but I don't have the required financial capital. Can you assist me in providing loans/grants?
  • jeanny said on July 21, 2012
    My business is to create employeement for Maths and Science learner .I'm a South African Gauteng Region
  • siny said on August 4, 2012
    I am a senegalish that is wanting to starte a poultry farming in senegal ,the market is wide and the climate is good for poultry farming ,i am looking for some one that is looking for a possible poultry investment in senegal ,the political atmosphere is good ,i want to build outside of Daker the capital of senegal .
  • sridhar said on August 6, 2013
    dear sir, i am willing to start a pvc pipe making industry in small scale pls suggest me, place at palamaner mandal chittoor dist, ap state pls hep me sir
  • abhishek kumar tiwary said on February 11, 2014
    I am a mechanical engineer and i am going to set up a pvc manufacturing unit in bihar. Angel Investors & Venture Capitalists can contact me on my number 8260882657/email- aktiwary1111@gmail.com

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