So many people speak about money like it is all there is when you want to start your business. The truth is that money is an essential tool to start your business, but not the only one. There are so many other aspects we have to consider when starting a business. There are also ways to get the money or funds you need. In this blog series, I will share methods to raise the funds you need to start your small business. It is all about investment. Investing into your idea.
Investment jargons? Fund your business practically!
But when you hear the word “investment,” somehow our minds might identify it with large concepts like the stock market, cryptocurrency, treasury bills, bonds, savings accounts, Equity, mutual fund, money schemes and scams, ROI (Return on Investment) etc. These are big jargon used in the financial space to classify different financial instruments. For you as a micro business, let’s come into your day-to-day reality and explore more practical and sustainable ways to invest in your business. However, if you are already baptised into one or more of the above-named financial instruments, enjoy the deep!
In 2014, I launched the Joadre Fashion project to work with tailors to produce fashion for European customers. My interactions with these enthusiastic entrepreneurs always leave one big question unanswered. What is the next level? The top answer is I need money to get to the next level, but my question was, what is the next level?
So somehow, we have been made to believe that it is just the money we require; otherwise, we cannot move to the next space we want to. The next level will require investment, but it might be beyond money. The Cambridge dictionary sees investment as the action or process of investing money for profit. But as a small business, you can consider the investment as a means to bring capital to build their businesses. It is more than just raising funds for your business. You can do things that will transform into funds for your business. Watch our seasons YouTube beneath and read on for more details:
Articulate your plan before your raise funds for your business.
You can only design these practical steps that would generate funds for your business if you have a business and know exactly what the business is. No matter what your idea is, there might come a time when you will have to articulate it to someone. When that time comes, you can visit our blog on how to write a simple plan for your idea to develop the kind of articulation you will require. Let’s say you already have a plan and want to move to the next step; here are some areas I strongly recommend you invest in.
Different kinds of investment to take you to the next level
- Monetary investment
- Investment in your skillset – Brush up your skills. Know your business industry.
- Investment in your Mindset – Feed your mind with nourishing information. Also, take a break from this process of feeding your mind to be able to tap deeper into your intuition for direction.
- Investment in your community/social – Working integrative with the community you are based in is significant to build a sustainable customer relationship. When you work within our community, let it be more about what you can offer, not only about what you want from the community.
- Investment in your business – Many are very carried away about raising funds for their business, but they do not have a good product. Read more about using deep mindful strategies to build your small business.
Before we delve into different ways to raise funds for your business, you must ask yourself these questions; Why do you need money? Would it be for working capital, cash flow, faster production laps etc.? If you have thought about what you will do with the funds you raise through careful planning, accountability, and achieving milestones, then please do it now. Distinguish between your money and someone else’s money!
Here are some ways to raise funds:
- Moneytars investment
- Professional investors to Angels!
- Crowdfunds and investment
- Product/Service pre-orders
Get your loved ones involved!
Family and friends are the first way to get startup money for your idea. It might sound like the less complicated way to raise funds for your business but be careful. This is either Love, guilt, or favour money at times. Also, because the money comes from your Dad or aunty does not mean you are not accountable. The topic for another blog! Getting money from family and friends is probably faster, and you might not have to pay huge interest.
Try to get a loan – raise funds for your business.
You can get a loan from different platforms. From corporate banks to charity organisations. And by the way, you should ask your Church or faith-based institution! Seriously, why do you give tithes and offerings? Yes, for the church’s welfare because, believe me, God doesn’t live by our human-conceptualised monetary system. So if you take to heart the welfare of the church or faith temple, when you need investment to build the business from which you will later pay your offerings back, there should be an opportunity to get support. I know some faith organisations provide this opportunity, so ask!
Professional investors to Angels!
Angel investors and professional investors or wealthy professionals like well-paid or earning doctors, entrepreneurs, bankers, and lawyers could also be potential people to ask for loans. Professional investors or lenders might want more than just an interest back. Some might want to be a part owner of your project or business. So think carefully. In our upcoming Next Level Series, we will interview legal experts to get a concrete view and advice about handling professional investors.
Quick info, many professional investors look for around 25-30% return if they are part of the business and may want to get out of the business “EXIT” around the 5th to 8th year. What this exactly means, I will expand on video tutorials on the JoadreTribe app. You can check my YouTube channel regularly or just subscribe, so you know when we have interviewed about this.
Get grants to raise funds; If your business or project has a sustainable and/or social component as its foundational element, then read more in my blog on how to get money for the mission.
Crowdfunding or Crowd investment: In this blog – how to raise funds, I list some crowdfunding and investment platforms you might want to explore.
Go to platforms where you can portray your products and services, and they allow people to make preorders. This is one of the money-secured ways, as you end up always selling your service or product. So, of course, you have calculated all your profits, so you can build your capital. This is where you can build your website to take in orders for your services. I advise this: To start with your money and to try to find customers seems to be the best way. Create a real business that makes money. When you expand, and it works, you can raise “expansion or growth capital” instead of startup capital. why? You spend so much energy and time raising money instead of selling your product and service.
Remember to stay connected!
We created our one-stop digital incubator app to bridge knowledge and service discrepancies for African students and Savvy entrepreneurs looking to start a business. Get the app (Android version) here. For IOS users, a web app is available here at https://tribe.joadre.com. Sign up for our newsletter here to get consistent resources via email. If you want to contact us, use our contact form or consult us through the app.
Thank you for reading to the end.