Youths and stranded adults always cry for ways of getting capital to start their small businesses. Starting a business is hard and requires some good amount of free money. Looking for capital can pull people down and most guys wait till they get enough money to start business, but the fact is that you can’t start a business with enough capital to keep you for long before you start looking for more.
As youths, our main aim in life is to try everything we get our hands on, but how will you do it without monetary backup. In this article, I’ll share with you some money-hungry methods with very high conversion rates. As you start your business, know the amount of money you’ll need to make a turn. This will make you alert about the methods you can use.
Ways of getting capital
Crowdfunding(online)
If you have a large following of very possessed guys who are ready to help you out then this can be a great option for you. It can be from crowdfunding sites or via text message campaigns. The text message campaigns work better than the crowd funding sites, but the reverse can be true if you follow some tips on choosing the best crowd funding site.
How to choose a crowd funding site
1. Select according to your geographical location. Don’t go for sites that capture foreign places.
2. Get favorable sites. Some sites give two options; all or nothing and take what you get. For a good site, you should be able to take what you collect instead of only withdrawing when you have reached your crowdfunding goal.
3. The site should be bursting to the seams with traffic. It’s a good thing because some guys just browse projects and fund randomly.
Crowdfunding(offline)
This is the best approach and it works always. You have to prepare a list of viable people who you are going to ask for help. There is always fear towards approaching people for help, but you should know that if you don’t approach people, then you make it a constant that you will not get anything from them. One great rule that I mastered is that those who try have a chance of failure, but those who have not tried have already failed.
When using this method, look at yourself. How much can you lose to a friend who is starting a business. After that, lower your bottom line below your losing threshold then put your top line at a price you expect from the most reliable person in the list. Take an example; I can lose 5000 shillings to a friend so, I send messages to friends asking for any contribution between 3500 to 20000. That’s it, but here’s one more thing.
People always want to lose as minute as possible. If you are planning to collect 35000, divide that by 3500. To collect that, you need ten people because most of them are going to contribute 3500. That’s not the end. More than half of all the people you approach are not going to respond so, you need to send to three times the standard number. As of our example, you need to send messages to about 30 people. You’ll make it there. Trust me it’s going to work as long as you give your time. If you don’t collect enough from the above methods, invest the money as I will explain next.
Invest your little money
Most times when you cry for capital it isn’t that you don’t have it. You always have some small money, but it’s difficult to invest because you fear to lose the money or you have other vital plans for that money. The fact is that if you don’t try, you’ve already failed. It might be that your crowdfunding only returned some little cash.
The only answer is to invest in low capital high physical draining businesses. These are small faster turnover businesses though very demanding In terms of your inclusion. Examples are endless. They can be juice making, vegetable farming like cabbage growing, small retailing and shipping handling businesses.
This will mean that when that small business fails, your goal of starting the bigger one gets delayed, but it’s worthy.
When you have started your business, many people will be willing to fund you because they see some security in your business. If you think that the government or grant funds will help a fool who hasn’t started anything, stop dreaming and reread the above methods.
In this world, we live to learn. You can help me know your approach towards your startup or the complexity of your capital situation in the comments section or the contact us form. Thanks for reading.
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