Good Idea, but where is the capital? | Mainstream Blog

Good Idea, but where is the capital?


Good Idea, but where is the capital?

If money was as plenty as the air in the atmosphere, then literaly everyone would be rich, because we would all implement any idea into reality. Many are the business ideas that die a natural death simply because the person behind them lacks capital, but this ought not to be the case. When you have a business idea planted in your mind, it is then your duty to water it and do what you must. Including strategizing sources of financing, to ensure that it is groomed from a financed idea to a financing business. Dedication and commitment to the completion of set plans for the implementation of a business, will be at the heart of using the strategies that can bring about financing. But then, you have an idea, but where is the capital?


Develop passion for the business

Passion creates a drive and motivation to ensure that you achieve that which seems unachievable, because it shows the gap that exists between what is and what ought to be. The idea may simply look small, the plan may seem simple but the actions would seem unachievable because of the money needed nearly in every business. Before you even think about the needed money, develop a strong connection with the vision of the idea, that it motivates you to pursue the ideas we shall discuss.

Use Family and friends to your advantage

Do not assume someone will give or lend you money simply because you are related or they are your friends. Knowing that borrowing from a financial institution especially for young entrepreneurs without collateral is almost an impossible task, the use of friends and family becomes a necessary alternative. Funding from these people is an effective way to round up initial capital for business because those closest to you are likely than anyone to believe not only in your vision, but your ability to make your vision into a reality. The strategy is this, there is always an inner desire for people to benefit from everything they are engaged in and so, having a borrowing strategy that speaks to their benefit is the starting point. When you approach them to seek funding, tell them how they will benefit from the business you intend to do. Example, you can give a glimpse of how the outlook of your business is envisioned and how you are willing to help them fulfill their inner desire to be part of the success. However, caution should be set on not speaking too much about what exactly you will do, because they might take advantage of your financial incapacity and use your ideas to build their own business. Another point of consideration is that you return the money at the agreed point and let loose the connection to avoid pinning yourself in unplanned partnership. Just because someone lent you money to start up your business, does not make them complete partners of the business overtime. Think smart and act smart.


Use Business to fund Business

Many are times that the business ideas people have need a huge amount of capital to initiate. Those with financial struggles easily give up even before launching, because the mountain to conquer in order to raise capital, seems bigger than their idea itself. 

When your idea requires much capital, learn to build the funds over time using other means. Under this strategy, start any seemingly small business that will provide some funds for you and learn the art of saving. The main motivation ought to be the desire to see your dream business into a reality, and inturn develop the discipline of saving part of the money raised, no matter how minimal it may seem. A young entrepreneur who then was in college had a big dream of establishing his business in graphics, but did not have any device nor funds to support his dreams. He identified an opportunity in college where he could sell rolls and tomatoes to friends owing to the fact that the market was some distance away. This business was earning him so little, but within a short time, demand for the commodies was high and he was able to purchase laptops and printers—this was the birth of a printing business. The printing business raised more funds and he was able to purchase more equipment, register his business in graphics and was set on his dream business idea. It is important to realize that sometimes, you must do what you did not plan, to achieve what you desire. And so, do not look at the current profit, but rather the bigger picture that you are building the needed capital to catapult your dream into reality.

Take up that Job

Entrepreneurs are mostly people who want to be their own bosses and do as they please to achieve their dream, but it is also important to remember that you ought to learn from others that are already established. Taking up some form of employment serves two important lesson; firstly, you will be able to raise some money and realize that you can do so much more on your own, and this will build your desire to do even more to raise the needed capital

Secondly, you get to learn how already established businesses raise their funds, understand their strengths and weaknesses whilst learning practical lessons of errors that others make. There comes a time when you need to humble yourself and take up a job that will provide some funds, but remember not to get too comfortable and forget your desire to actualize your business idea.


KEY THOUGHT

Do not limit your ideas to money, because that is only a small fraction of what is needed to create a business. Instead, do what you can to achieve what you must.



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