The biggest challenge any Entrepreneur in Ghana or elsewhere would face is how to raise money for business. It doesn’t matter how profitable you think the proposed business is, doesn’t matter how little the money you needed to start is – once you’re not able to raise money to start the business, the business can never be started.
To raise money for business is the biggest achievement any aspiring Entrepreneur could make.
Once you have the start up capital, every other thing falls into place easily and that is only when your business idea begin to make sense.
When you are starting a new business you have a million and one things to think about. With so much to do, you will need to learn quickly.
Any entrepreneur will tell you that raising money for business in Ghana can be the toughest part of starting your own business.
If you’re one such entrepreneur, this article provides a comprehensive guide on how to raise money for your business.
Here are the top 7 ways to raise money for business:
1. PERSONAL SAVINGS
The best person to give you money is yourself…
If you plan to start a business soon, start saving for it now.
Open a savings account in any bank and start saving small by small, spread your savings over the period of time you intend to kick start your business and make it a target to save certain amount periodically.
To be able to achieve this, you’ll need to be resolute and disciplined. Cash demanding Problems may come along the way, look for other means to solve them — ask yourself ‘what if there is no savings what would you have done? Go with whatever answer you get and use it to solve the problems instead of using the saved fund. With this, you will be able to raise money for business through Personal Savings.
2. THROUGH FAMILY AND FRIENDS
Make a list of your rich friends and family members and divide the total needed amount by the number of people in your list to make it smaller and easier for them.
The biggest mistake many Entrepreneurs make is go approach only one person with the entire amount of money.
To give out money requires plenty of trust and no one knows and trusts you better than your friends and family members.
3. CO-OPERATIVE SOCIETIES
Cooperative societies are the most popular source of crowd funding in Ghana.
In a cooperative society, members of the society contribute the funds.
When adequate funds have been pooled, the members of the society then take turns in borrowing the money.
If you belong to any cooperative society in Ghana, you can leverage that platform to raise some fund for your business.
4. TAP INTO YOUR OWN MONEY
If you can’t invest in your own business, why should others? Moreover, who is the best candidate to get a loan from? The answer is you.
Dip hands into your savings, home equity, or retirement accounts. It’s risky, but who cares. Go for it.
Knowledgeable investors want to see founders show confidence with cash.
If you believe in your vision and have an absolute refusal to accept failure as an option, you should feel comfortable investing your own money into the business.
5. ANGEL INVESTING
After entrepreneurs have made their fortune in their own businesses, many of them look to support and invest their funds back into other startup businesses.
These are known as angel investors. They are not always some extremely rich people. They could also be friends or friends of friends.
Attracting angel investors is a tricky business, and no matter how exciting and positive the initial conversations may be.
That’s why you need a good business plan. Also, ensure that you back up your valuation with real projections from your feasibility studies.
If you manage to impress an angel investor, they may provide investment in return for an equity stake.
But, prepare to give up good part of your company up to 40% in exchange for the needed capital.
6. GET BUSINESS PARTNER(S)
Don’t think you can go about your business alone and keep all of the profits for yourself.
Although a few people have gone the solopreneur route and have been successful, the same can’t be said for many others.
Why not spread the risk and responsibilities? It’s good to know that there’s someone else who is as committed to the success of the business as you are.
However, before any partners have invested significant time or money, you need a partnership agreement that sets out expectations and responsibilities.
Decide who will do what, how these inputs will be measured, who has the right to make what decisions, how profits and losses will be shared, and what happens when partners disagree.
The time to agree on these things is while you are all still friends. The business world will test you and you better be prepared.
7. INVOLVE IN ENTREPRENEURSHIP FUNDING PROGRAMS
These programmes are all over the place. Their purpose is simple: to encourage and support small business ownership, thereby creating jobs and fostering economic growth.
Why not launch your internet browser and start searching for one?
These programs are like startup competitions and they are willing to contribute to your business without demanding payback. Free cash!
These are Just few ways to Raise Money For Your Business!!!