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How to fund a business?
I had a business idea, and I needed to collect money to fund it and hire people to bring this idea to life. I had no idea on how to get money for that and from where I could possibly get it.
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5 answers
Updated
Theophilus’s Answer
Hey Kadiatou!
That’s a great question! Starting a business often feels challenging, especially when you don’t have the funds upfront, but there are smart ways to bring your idea to life without needing a huge investment.
When I decided to go into the skincare and haircare business, I didn’t have a lot of money to start, either. So, I took a creative approach. I found pictures of the products I wanted to sell, advertised them, and started gathering interest. Once customers placed their orders and paid me, I used that money to buy the products. I delivered what they bought, and the profit I made allowed me to buy more products and start building my stock.
To make it even more affordable, I approached shop owners and convinced them to sell to me at wholesale prices, explaining my vision and showing my commitment. Over time, this allowed me to grow my business gradually without needing a big upfront investment. Now, I’ve been running my business for over five years and manage a team of seven employees.
For you, consider starting small and seeing how you can use what’s around you. Start by offering services or products that you can buy only after customers have placed an order or paid a deposit. Also, look into wholesalers who might give you a good deal if they see that you’re serious. This way, you’re funding your business as you go, reinvesting profits to keep building, and not taking big financial risks.
With patience, persistence, and a little creativity, you can bring your idea to life!
That’s a great question! Starting a business often feels challenging, especially when you don’t have the funds upfront, but there are smart ways to bring your idea to life without needing a huge investment.
When I decided to go into the skincare and haircare business, I didn’t have a lot of money to start, either. So, I took a creative approach. I found pictures of the products I wanted to sell, advertised them, and started gathering interest. Once customers placed their orders and paid me, I used that money to buy the products. I delivered what they bought, and the profit I made allowed me to buy more products and start building my stock.
To make it even more affordable, I approached shop owners and convinced them to sell to me at wholesale prices, explaining my vision and showing my commitment. Over time, this allowed me to grow my business gradually without needing a big upfront investment. Now, I’ve been running my business for over five years and manage a team of seven employees.
For you, consider starting small and seeing how you can use what’s around you. Start by offering services or products that you can buy only after customers have placed an order or paid a deposit. Also, look into wholesalers who might give you a good deal if they see that you’re serious. This way, you’re funding your business as you go, reinvesting profits to keep building, and not taking big financial risks.
With patience, persistence, and a little creativity, you can bring your idea to life!
Katherine Avery
Run a music studio and teach private music lessons; teach college-level religion classes
350
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Katherine’s Answer
Hey Kadiatou,
I want to recommend three resources to you that should help in a few different ways as you think about your business and move forward with it:
This workbook (https://www.churchofjesuschrist.org/bc/content/ldsorg/topics/self-reliance/2017/14678_sgmb_book_eng.pdf?lang=eng)
Dave Ramsey's book EntreLeadership
And Ken Coleman's book From Paycheck to Purpose.
Give these three a read and see what you think.
I want to recommend three resources to you that should help in a few different ways as you think about your business and move forward with it:
This workbook (https://www.churchofjesuschrist.org/bc/content/ldsorg/topics/self-reliance/2017/14678_sgmb_book_eng.pdf?lang=eng)
Dave Ramsey's book EntreLeadership
And Ken Coleman's book From Paycheck to Purpose.
Give these three a read and see what you think.
Updated
Allan’s Answer
Family and friends first. But in order to be successful, no matter who you ask, You must be able to state your plan in plain language, and you must be passionate about every aspect of it. You would be wise to anticipate every “ no “ answer, and have the reason Why you would be successful. Once you have developed and researched, the product or a service, you must have plans to implement it
Justin Shapiro
Accounting | Finance | Financial Systems | Non-Profit Volunteer
74
Answers
Updated
Justin’s Answer
Hi Kadiatou,
To fund your business, there are several strategies you can consider to raise the necessary capital:
1. Personal Savings: Using your own savings is one of the simplest ways to fund your business and maintain full ownership without taking on debt.
2. Friends and Family: Reaching out to people you know for small investments can be a quick way to gather initial funding, though it’s important to formalize these arrangements with clear terms to avoid conflicts.
3. Angel Investors: These are individuals who provide capital for startups in exchange for equity or convertible debt. Angel investors can be found through networking or angel investor groups.
4. Venture Capital: If your business idea has high growth potential, venture capital firms might invest in exchange for equity. This option works best for businesses in tech or industries with rapid scalability.
5. Crowdfunding: Platforms like Kickstarter, Indiegogo, or GoFundMe allow you to pitch your idea to the public and collect funds from many small backers. This can also serve as a way to validate your business idea.
6. Small Business Loans: Banks and credit unions offer loans specifically for small businesses. These can be secured (backed by collateral) or unsecured, though good credit is often required.
7. Government Grants and Programs: Depending on where you are located, there might be grants or funding programs for startups, especially if they align with specific government goals or initiatives (e.g., tech, green energy, etc.).
8. Business Competitions: Some organizations and universities hold contests for business plans where winners receive funding or support.
9. Incubators and Accelerators: These programs offer seed funding, mentorship, and resources to startups in exchange for equity or other terms.
10. Pre-Selling Products or Services: Offering products or services in advance (presales) can help you generate funds before officially launching.
11. Partnerships or Strategic Alliances: Teaming up with other businesses that might benefit from your idea can provide financial and operational support.
12. Equity Financing: Selling shares of your company to investors in exchange for capital.
Research which of these options best fits your business type, risk tolerance, and financial goals.
To fund your business, there are several strategies you can consider to raise the necessary capital:
1. Personal Savings: Using your own savings is one of the simplest ways to fund your business and maintain full ownership without taking on debt.
2. Friends and Family: Reaching out to people you know for small investments can be a quick way to gather initial funding, though it’s important to formalize these arrangements with clear terms to avoid conflicts.
3. Angel Investors: These are individuals who provide capital for startups in exchange for equity or convertible debt. Angel investors can be found through networking or angel investor groups.
4. Venture Capital: If your business idea has high growth potential, venture capital firms might invest in exchange for equity. This option works best for businesses in tech or industries with rapid scalability.
5. Crowdfunding: Platforms like Kickstarter, Indiegogo, or GoFundMe allow you to pitch your idea to the public and collect funds from many small backers. This can also serve as a way to validate your business idea.
6. Small Business Loans: Banks and credit unions offer loans specifically for small businesses. These can be secured (backed by collateral) or unsecured, though good credit is often required.
7. Government Grants and Programs: Depending on where you are located, there might be grants or funding programs for startups, especially if they align with specific government goals or initiatives (e.g., tech, green energy, etc.).
8. Business Competitions: Some organizations and universities hold contests for business plans where winners receive funding or support.
9. Incubators and Accelerators: These programs offer seed funding, mentorship, and resources to startups in exchange for equity or other terms.
10. Pre-Selling Products or Services: Offering products or services in advance (presales) can help you generate funds before officially launching.
11. Partnerships or Strategic Alliances: Teaming up with other businesses that might benefit from your idea can provide financial and operational support.
12. Equity Financing: Selling shares of your company to investors in exchange for capital.
Research which of these options best fits your business type, risk tolerance, and financial goals.
Updated
Enjy’s Answer
Love the above answers. I would look into sponsors, and investors that willing to help you throughout your business with a decent interest % once your business hit a target.