One of the greatest challenges your start-up will face is financing. Unsure of the available options? Have a look at some interesting options
Use unorthodox methods like crowd funding
No one is funding an idea anymore. Most people will ask for a prototype and even proof of concept. How do you get there? It takes money to register the business, get all the licenses, and build a prototype. Maybe you don’t have savings. What next?
We have thousands of friends on social media. What if we use them and their networks to raise some capital for your business? We have raised funds for medical, weddings and education online. We contributed because we read a story that moved us. What if you can tell the story of your business? Have friends share the story, have strangers contribute.
There are plenty of crowdfundng platforms that can start you off.
Take advantage of opportunities for women
Women do not take advantage of opportunities that will give them access to funding, mentorship and networking. Have you ever seen opportunities with a note ‘women are encouraged to apply’ ? It is because women simply don’t take it upon themselves to apply . Is it an attitude problem? Do we feel that we will not be selected if we apply?
We need to lose that mentality and start grabbing al opportunities that can actually connect our businesses to funding.
Develop a saving culture
Savings can actually help our especially for women who want to quit and start a business. Start saving your salary in a savings account that will attract great interest. You can join a chama that has a great saving culture and this will enable you raise enough capital to start off without having to borrow.
Take advantage of the 3Fs
These are Family, Friends and Fools. When you start off, you are more likely to get some funding from loved ones. They will believe in a newbie like you. The funds they give you are fast, interest free and mostly, give with love. However, being a newbie and likely to fail, this fun comes with a lot of family rifts, enemies and discomfort. If you succeed, these are the first people you pay back.
Have a Fuck –off Fund
Excuse the French but really, this is an actual fund. It is an emergency fund that entrepreneurs are encouraged to have. This fund has savings for at least 6 months that will guarantee that if things in business turn south, you can say ‘F off’. You will still pay rent, eat, duel your car as you think of the next step in business.