Category: Business Finance
Forms of financing
As a starting Business, there is one of three ways for which you can finance your Start-Up, that is: (1). Using your own money which you saved up to start your business, (2). Getting a loan from financial Institutions (e.g banks), for which you will be charged interest on such (i.e when paying back the money you borrowed to start your business), Or (3). You can explore the option of Investments, for you give away shares (a part of your company) to these Individuals who usually you pitch / present your business too. For which if they see potential in your business they will put their money into your business, money which will not be expected to pay back in cash, but instead the business is paid in shares (as stated), thus most of the time the same person will help you grow your business with you (i.e usually more experienced in Entrepreneurship than you), as you will be starting in this whole thing. And such Individuals come in different shapes and sizes, as some may be wealthy Imdividuals (looking to grow their Wealth more), and or it may be Venture Capitalists (i.e guys who Investment in people's business Professionally) who are Professional Investors, is who you should be looking out for. As if you are lucky to get them (i.e even if it is just one), then you will surely be sorted for life, but you must first be prepared on how to pitch (present) your product, and maybe be listed on a stock a change (God help you), as all those who made it (big Companies cross the world) made it through them, VCs are there, waiting, but we must prepare you first .., let us end it there for now ..