RAISING CAPITAL FOR YOUR SME.

One of the hardest times in a Small and Medium Enterprises / business is during the early stages of the business, when you are just starting and managing its finances. Many companies have had to close before starting operations due to lack of capital (initial capital) or misuse. In this post, we will be looking at ways on how to raise capital for your business. Below are some of them.

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1. Your personal savings:

There is an adage that says that in your times of need, the fastest hands that will come to your help are the ones on your shoulders. What this saying implies is that the best way for you to support your business is from the money you raised by yourself (i.e, money you saved). Before getting more outside financial support, it's important to start with what you have. It could be one of the people you saved.

Most of the time, anyone who wants to help you financially will want to see you start working to make sure you work. That's why you need to start something wherever you are, and with the savings you already have, you'll be amazed at how much help you get along the way. Waiting for full financial support from outside sources before starting will delay the start.

2. Friendly support from friends and family:

In cases where personal savings are limited or insufficient, an external source should be sought. Most of the time, the people closest to you (the people around you - your friends and family, the people who believe in you) will be the quickest people you can turn to for help. This could be a loan or grant.

A few weeks ago, a friend of mine started a small import business. Before that, he complained about the fund and how it was collected. I discussed it with him and after making a list of the money he needed, I asked him to divide it into 20 places. Then I told him to go through his acquaintances, make a list of forty of his friends, and talk to them about how he could help him raise the money.

Amazingly, by the time he reached out to his 35th friend, he had already received 20 positive responses and the money had already been donated. However, when borrowing money from friends and family, try to stick to your word and the payment agreement. This is to avoid confusion, so as not to impede future aid access. You should also know that helping a friend is not a right but a privilege, so it should be treated as such.

3. Obtaining loans from financial institutions:

This part of the world has specialized lending structures for the types of small and medium-sized businesses that entrepreneurs can access, some of which enjoy very low interest rates. The Agricultural Society also supports those setting up small and medium-sized businesses related to agriculture.

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In addition, some microfinance banks can be very valuable due to their ease of access, availability, and low interest rates. Also, some government provisions can be useful in this case, in the form of subsidies. All these vehicles allow you to effectively raise funds for small and medium businesses.

Thank You.

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