More than 99% of sole-proprietorships are shut down because they do not have funds to push their businesses from the starting point. However, business ideas flow in every day. Are you an entrepreneur? Do you need capital for your one-man business? This article will be of great help to you as it gives various ideas on how you can raise the capital for your business.
SAVE FOR IT
Depending on how high your budget is; you can set a goal for yourself to save up for your business. There is no better feeling than having funded your business by yourself. You won’t have to share your profits with anyone and you can have a clear mind knowing you are not indebted to anyone. This is always the first option when it is feasible. If you trust your business idea, you should be able to put your savings in it.
ASK YOUR FAMILY AND FRIENDS TO INVEST
Especially if you have a large family, a healthy relationship with your extended family, you can ask your family members to invest in your business. Also, if you belong to circle of friends that believe in empowering everyone in the circle and helping one another climb up the ladder of success, raising capital shouldn’t be hard. However, here’s one thing you should not do. Do not force your family and friends to invest in your business and make sure they know the details of the business so that they are well aware of what they’re putting their money into. This will help you avoid issues in both your business and relationship in future.
SEARCH FOR ANGEL INVESTORS
Another way to get the capital you need for your business is to search for angel investors who would invest in your business as their own business. One way to easily (not cheaply) get this is to have a mind-blowing business plan and a captivating investor pitch. Make sure your presentation of the idea to the angel investor is good enough to compel you to make such investment before presenting it to other persons.
LOOK FOR GRANTS
This should seem to be a very good idea for raising capital. Why is this so? There are companies and organizations out there that offers grants to starters as a form of empowerment, and they are not loans; you do not have to returns grants. However, they are not always readily available, but they’re one of the most recommendable means of raising capital for a sole proprietor.
GET A LOAN
This is last on this list because it seems to be the most dangerous on the list. A lot of businesses that are doing fine now started on a loan, so loans are not all that unadvisable. They are just with a very high casualty possibility. You can approach a bank or loaning organization with your business plan and collateral, if your plan is good enough, you will get enough money to start your business. However, be sure for over an average that you can make the plan work because if it doesn’t, you will lose your business, be in debt and maybe even lose a property if you are unable to pay on time.
In getting capital for your one-man business, you must be ready to put in your best to make a great business plan and to carry out the plan because no one will invest in a business without prospects.