One of the important factors needed to start a business is capital. Capital needed for business is usually divided into three: First Capital Investment, Working Capital, and Investment Operations, but after knowing this, some people even more dizzy. “Counting’s capital is easy. The problem now is how to do so capital can be accumulated?” so maybe you’re thinking. This discussion is interesting, because many people difficulty raising capital business. Then where they can raise capital? There are three ways to raise business capital:
1. Capital itself
First obviously, if you want to start a business, you can use their owned capital. How can the taking of deposits that you have now, whether from savings or time deposits or by selling assets you have. For example, many people who sell the bike to become the business capital, or sell the jewelry they own.
Selling goods to increase business capital are common. Most important, do not feel too dear to sell some of your assets to increase business capital. For example, if you do not have the money to venture capital and had to sell your jewelry, so sell it. Later when your efforts are successful, you could always buy more jewelry the better. Really, what?
Borrowing money for business capital is also often done. By borrowing, businesses often do you dream can come true faster. This is better than waiting until the accumulated capital. Just because you get capital by borrowing, you really should pay attention to your cash flow. This is because you would have to return the money you borrow. Whether the return on a monthly basis, 6 months, or maybe years.
In the case of borrowing, that many people are often too focused on how they can get a loan, but do not think about what they can do to return the loan. So, when borrowed, try to figure out how you can return the loan. The tips, when you think of the way, do not be too optimistic that the income from your business must be able to direct large first months. If necessary, make estimates pessimistic possible. From a pessimistic estimate, you must be able to assess whether the returns are going to do later can be smoothly or not.
Instead of using your own funds all, or than you borrow, why not try to collaborate with other people? With long term cooperation, the risk of your business can be smaller because it must be shared with your friends. Just, you earn profits must also be divided. That is, the risk is shared the benefits must also be divided.
Now the problem, is there someone who will cooperate with you? That depends on whether you can as well offer a reasonable profit on the business you offer. However, the offer is not enough profit. You also must be able to give a good approximation, is not proud of the people you want to cooperation.
Also, if possible, an explanation that you provide should also be reasonable, sober, and not merely describe the benefits to people who you want to cooperation. Well, now, you already know how to raise capital to start a business. I hope the three options above, you can determine which option is best.