Business Development Funding by Owner
By Vanwanati Business Investments
Fund yourself first before you can start searching for funders. By Mr. Noughty Sir Business Coach and Wealth speaker. When it comes to spearheading a successful business, the amount of money and sweat equity you put in is equally as important as the amount of time for the services you provide in return. People often go to extreme measures to keep their business afloat, some options being more realistic than others. Anyone can start a company, put up a website, and create a Facebook page, but what determines where that company will stand six, 12, or 18 months down the road, is not only sales, but the funding and capital behind the business be by the owner or sponsorship or funders. One needs to be able to keep the lights on, compensate your employees, keep food on your table, and ensure operations don’t come to an unexpected halt. Being an entrepreneur, mostly within different business sectors, I’ve seen many businesses start, grow, fail, and either bounce back stronger, or just get scrapped completely because most entrepreneurs starts businesses and within three months of operation start to merely rely on funding or expect a great success of their businesses which is totally wrong, patience is virtue and entrepreneurs needs to be patience with their businesses and not rush for success. Entrepreneurs needs to be able to fund themselves first before they can attract funders to come on board and fund their businesses There are six main things, from what I’ve seen over the years, which your business may rely on. Here they are: Friends and family. Word of mouth is always the leanest way to acquire your first customers, create your network, and begin your entrepreneurial journey. The success of your startup, more times than not, relies initially on the support from friends and family. Sometimes that means their time, their emotional support, or in some cases their capital which is very much important for that matter. Because, in the end, who wants to see those near and dear to them struggling and failing because of finance when they have a plan and strategies to make more financial income? Private Lenders. Music to an entrepreneur’s ears, through private lenders, founders can gain access to funds without any involvement from the government, it is the most convenient way for most businesses to begin operations. One of the key players in this space is GEP, SEDAs and other Government agencies in the entrepreneurs exposal. They have a remarkable reputation for funding startups quickly and efficiently, even they’ve only been operational for 6 months. In turn, a ministration like this allows founders to worry less about operational costs, and focus on selling. Remember, as Shark Tank has shown, a startup doesn’t have to be a tech company; it’s any company on its way up. Crowdfunding websites. Crowdfunding is a centralized way for startups to reach out to a large audience in their niche to make their prototypes or ideas a reality. In return, you not only create a community around your product, but you acquire your first users to test, utilize, and help innovate what you are working toward. Angel and seed investors. Sometimes you find these people via the Internet, your personal network, or maybe you cornered one of the business influencers at his favorite coffee shop to pitch your idea. Regardless, your angel or seed investor is your go-to advisor whom you may compensate with equity in the company. Their network is always as rich as their net-worth, so take advantage of it. Credit cards. If you’re a Shark Tank fan, you know how much Mark Cuban opposes this idea. This is more of a short-term option and personal investment. Keyword, “personal.” If you can afford it, you can play it smart, BUT remember there is always a bill waiting for you at the end of the month. Businesses survive on borrowed time when relying on credit to keep them afloat. Bootstrapping. When a business starts off with a lack of funds in their pocket, they are considered to be “bootstrapping”. Certain entrepreneurs are doing and did a great job bootstrapping their business and growing it to be one of the fastest growing startups in the country. The lack of external funding and assistance can be a personal handicap, or it can be a blessing. Who knows, 6, 12 or 18 months down the line, you won’t have to worry about paying out an investor. After thoroughly considering all six options above, receiving aid from private lenders seems to be the most resourceful option available to business owners looking to get started right away. It allows for minimal risk to the business and their founders, while still leaving the other five options at their disposal. Here are top five list of organisations to assist and fund your business to give it financial boost and support. http://www.retailcapital.co.za/ emailto:firstname.lastname@example.org http://www.wdbinvestments.co.za/ emailto:email@example.com Website: www.wesbank.co.za Tel: 0861 137 137 or 0861 900 900 E-mail: firstname.lastname@example.org http://www.idf.co.za or call 011 772 7910. Application forms can be downloaded from www.idf.co.za Website: www.merchantwest.co.za Tel: 011 305 9400 email@example.com Tel: 011 305 9400.
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72 days ago • Honeybird started a discussion. 0 • 0
I just want to agree with you on the fact that fund yourself before you can start searching for investors. . .I tried many times to look for funding while I am at home and looked for money to Pay rent or buy a place where I can do my business. But guess what all my applications were declined or either other investment opportunities want you to choose a package in which you will pay every month or annually while you are applying for an investment.This made me realize that there's no way that these people are going to fund my business If I won't put a cent in it.. Then it have come to my attention that investors want to first see how serious you are about your business then they will help you. . Therefore as for me now I decided to stop looking for Investors. I am currently setting up my office charges and getting Furniture for it and I want to employ at least Two or Three people who will work in the office while I am away especially because I am still studying. And I don't want to lie is hard because I have to limit some things that I require so that I can be able to pay rent and my employees every month from my pocket money. So this will definitely show investors that I am serious about this business and that it is indeed going to benefit them after some time by seeing the progress it will make in a year or two... So guys my advice is Use all your pocket money before you can want to use other people's pocket money.