1. Determine how much money you need.
How much money do you really need?
A new business owner has to come up with a valuation of the company's
worth -- and that’s very difficult in the corporate world.
Start by asking yourself how much you
can actually produce. You don’t know because you have never done this on your
own. You can bill a certain amount of hours, but you have no client base,
and you'll have to go out and get it.
Coming up with a concrete business
idea, being able to show that there is profitability after everything else
is paid, and keeping the overhead low are things you must carefully consider.
2. Keep business overhead low.
Everything -- rent, computers,
office supplies, utilities, etc. -- will be an expense even before you
start making profits. This is more commonly known as burn factor. You
might have to work from your home or apartment instead of having a fancy
address. This will save you money.
Every business owner we talked with all
echoed the same theme: Keep your overhead at the lowest level possible. For
example, if you must rent a building, look in an area that is a little
more marginal than the heart of the city.
3. Approach friends and extended family.
If your parents or siblings do not have
the financial ability to help, look to grandparents, aunts and uncles,
cousins and friends. Go to them with a great business plan in terms
of future expectations of cash flow, revenues with profit potential,
and figure this whole thing out after all your expenses are
paid.
A creative way to entice your friends
and extended family to help is to have them invest about to 200
naira per share. Let's say you need #1,000,000. A friend could invest and
buy 1,000 shares for #200,000 and he would own 10 percent of the company.
Limit the amount of shares so that you maintain majority of ownership.
Should your company produce a profit, you could offer a
second round and sell shares for $2 each, which would enable the initial
investors to buy out at a profit.
4. Look to crowdfunding.
When friends and family are not an option, you can
always resort to crowdfunding. The concept consists of amassing small
amounts of money from total strangers who believe in your ideas and are
swayed by your brand’s story. But don’t confuse this with easy money. For your
story to reach the masses, you have to actively promote it on
social media and get as many people as possible to talk about it and pay
for it.
No comments:
Post a Comment
Contact Us
Email: publisher@absolutehearts.com
Phone/whatsapp: +2348027922363