Small Business Startup Funding
When starting a business, money is an essential aspect. Of course, a great idea and a well-written business plan would not work without start-up capital. For most entrepreneurs, funding can be the key when starting a small business.
In reality, it is not easy to get funding. You must need to prove yourself first before anyone can be able to lend you that kind of money.
Most businesses would often require an initial startup capital like marketing, incorporation expense, business registration, and more. Inadequate financing is part of the list of why businesses fail. Sometimes it is a matter of doing simple cash flow. Some companies failed because they stop exploring once they lack the money continue.
There are several things that you need to remember if you are planning to explore your funding options. Ask yourself if your needs are short-term or long-term. Assess how long can you pay the bank loan. Will the money be used for operating expenses? Can the funding be given in installments? Are you willing to share the risk of business failure? Here are some questions that you need to ask yourself especially when there are funding options that are available. There are two kinds of business financing. One is debt financing which allows you to borrow money and pay it back in a time frame or interest rate. You owe money whether or not your business succeeds or not. Bank loans are a common example of debt financing. Another is what you call equity financing where you will sell part of your company in exchange for cash. As an investor, you assume all the risk because if the business fails, you will lose all the money. The good thing is the fact that if it succeeds, the return of investment is pretty high.
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The truth is the fact that investors take a higher risk than lending firms because they are involved in your company. They most likely give advice. There are cases when investors only stay for few years until they get their return of investment. It is better not to give too much control of your company. If you are a start-up company, there are quite a number of funding options that are available.
- Friends and family are considered good sources if you want to get loans and deals. They are much lenient when it comes to return on investment. It is still advisable to create a business plan to make formal documents.
- Credit cards are the best tool in order to have a good cash flow process. There is the cheapest introduction rate that makes it more effective. Take note that if managed poorly, it can be expensive.
- Bank loans are another source of bank funds. This is much easier to obtain especially if it is backed by assets or guarantors. There are loans where you can actually get a line of credit.
- Angel investors are becoming popular nowadays. It is better if you have a financial advisor who can structure the whole deal.
- Private lenders are another option when the banks say no. They specialized in industry and were more willing to take risks.
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270 Comments
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- Hi, I am a 36 year old from Durban, South Africa, I am Muslim and would really appreciate your assistance in assisting me with finances to start up a business, I want to open up an Islamic clothing store for men, women and children, the need for Muslim attire has increased considerably and very few outlets to service the community and the few stores that are available have extremely high prices attached to their garments, I have found various suppliers on Alibaba.com that are extremely reasonable with the prices and are willing to provide me with the items that I request from them, I really want to open up this business but desperately need financial assistance, thanking you in advance. Kind Regards, Faizal
- I am young intelligent 23-year-old-man who wants to broaden my experience in graphic designing, i've been studying Information Technology. Now i started designing logos for our township called Hammarsdale, my focus is to own my own working place here in Hammarsdale where i will be able to do all my T-shirts Printing. So i this mind of making money for myself but dnt have the capital. All i want is a container and the T'shirts Printer inside. If anyone can help here his/her money can comeback very soon cos i can be the 1st person to have this kind of working place n start printing t'shirts n hoddies. You can send an email on sbonelontinga@gmail,com.
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- is located at 19 c Urua Ekpa road, Uyo Akwa Ibom State of Nigeria. we are both service and production company looking for take of funds to help start operation. please how can we get bank loans without the usual bottle neck bureaucracy? thank you
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- My business is located in katuba,chibombo,zambia. this business concerns technology. i want to set up this business so as to help people in rural areas who cannot have access to computers and the internet. this project will at least help in fight against HIV due to the fact that most of the youths will be speeding time on the computer and not with girls or boys.
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- hi am running a private High School in Pretoria South Africa, looking for the sponsor in current textbooks, furniture, computers or funds to enhance my business. office 012 321 6893 mobile 0027726950787 email admyeza@yahoo.com
- HI I have finalised my project of building apartment in Bangalore. I have vast experience in construction industry and I am an individual. I require about rs 7500000-Rs 10000000. Please advise me about how to get an investor
- please help me with funding i need to start a small business my email address is vukeyag@webmail.co.za.im from south africa
- I am a Ugandan and I would like to start up a state a modern farm on 55 acres of land. Estimated cost is USD 25,000
- Hello I would like to start my internet network marketing business I would need $30,000 to get things going. Please email me almpga85@yahoo.com or call 850-387-3656. Thank you so much.
- I'm 28 yrs old and have a passion for this, I'm located in Atlanta, Georgia thank you again.
- I'm looking for someone who can help me, with a startup of R10000, i'm running a small supermarket thank you (johannesburg south africa) cell 0738609785
- hi, please please please, i need funding to start a retail shop. i have been jobless with no payslip so banks can't loan me. I live in kenya and i want to locate my business in Mombasa county, likoni constituency. Anyone willing to help in anyway, i will be grateful and definitely looking to hear from you! My email is nyamailoise@gmail.com. God bless you!
- hi, I started a business making handcraft baby bags, tourist bags, leisure bags, table mats and wall hangings. I would like to grow big and get market for my products market. currently am working from a friends store in Kampala (Bukoto on Kisasi road). please help out. Thank you. my contact is +256-774380266
- I am a Dynamic Business Man that has been running a company on a small scale that could make ends meet. I am now in a position whereby my products are in such huge demand that it is taken off with great potential. I however have a problem as I cannot afford to by in volume as the demand requires. The company has the potential of becoming a multi million rand organization. I need some one to join into the business and share the growth and profits as it is time to make dreams a reality. I will go 50/50 with the right serious honest investor that will assist in the finance for making this company grow to its full potential. Please respond as this product will also benefit the people staying in poor areas and make life more bearable for them. I have a business plan and agreement available at your request. Thank you. My email is visionlinktechnology@yahoo.com
- I am angolan citizen aged 31. i live in luanda the capital city of angola. am looking for a business loan. to deal with transport in luanda. here a ten seat minibus is able to make a 100 usd note a day without fail. this is what i do here and i am know looking for money to buy a minibus or if possible receive one on loan.
- I am Richard Ofori. I run a car rental business in Accra Ghana. It is a very lucrative business as many tourists as well as investors frequently visit Ghana as a result of several tourist sites and the recent oil find and production. In order to meet the demand of all these visitors, i have just like any other organization, decided to expand the business by increasing the fleet of vehicles, getting car tracking systems and insurance, getting a modern office space and making the business known to potential clients. I seek a business partner or a financial to help fulfill this dream. Interested persons or organizations may reach me on email: richardofori13@hotmail.com or (mobile): +233 243 082 486 for further details.
- I am a angolan citizen aged 31. i live in luanda the capital city of angola. am looking for a business loan to deal on transport in luanda. here a ten seat mini bus is able to raise a 100 usd daily without fail. this is what i do here. so am looking for any wan interested. my email is clemmychinyama@hotmail.my cell number is 917406698.
- Hi my name is lenny I am from durban south Africa I have been in restaurant industry for 12 years now and I now want to start my own business but I don't have the finance I need help in getting a business loan I have done all the projection's and how i'm gonna pay back the loan if there is any one that can help me my email is padayachee.lenny@gmail.com Thank you Lenny
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