To start and grow any business, you will need more than just your extra cash. The great thing about starting a business is however that you can start out small, as small as you like. In order to secure the right funding or start out with little funds, you need to pivot your business. One way to go about this is by using services to generate cash flow to fund your business if you're a product-based business. Service-oriented businesses are easier to start because they essentially entail providing a service then receiving payment for the services. On the other hand, product-oriented businesses require some upfront investment to get up and running. So, consider selling services to generate income and capital for your business.
Another way to go about this is to assess the business’ needs and figure out the things that can be done with little to no cost or alternative ways to save cost. It’s easy to come up with the impediments stopping you from launching your business. But what about the opportunities? Identify ways that you can save costs now and scale up later.
Undoubtedly, there are a lot of free resources available on the internet
While using your savings to fund your business’ expenses isn't the ideal situation, it's one that is very common with entrepreneurs. As you are designing your business plan, make sure to ask real questions that help you determine how long until your business is profitable. Then factoring that in, save up at least six month’s worth of expenses.
Alternatively, you can also ask your friends and family for extra funds. It is important to note that you’re not asking them to give you money for free. You're asking them to help fund a viable business that will reap profits. You also have a solid business plan that is also detailed and answers any questions asked. Be sure to have everything in writing and have a specific date for repayment.
You can also apply for a small business loan. Banks and online lenders specifically offer different kinds of small business loans at various interest rates for businesses looking for investment opportunities. Consider a business line of credit if you’re looking for money that comes in regularly on an as-needed basis. They’re like credit cards for your business and you can use it to make payments for little things that help with the day-to-day running of the business.
Finally, there are also small business grants and local funding opportunities. In all honesty, these are not easy to find at first but become more readily available when your business has been launched and is making some progress. Grants generally have prerequisites so be sure you are eligible before entering your business.
Here’s a short list of some available resources:
The Bank of Industry (BOI) Youth Entrepreneurship Support (YES) Programme
Diamond Bank Building Entrepreneurs Today (BET) Programme
Use related services to generate income for your business
Find alternative ways that help save cost
Use personal savings
Ask for funding from friends and family
Get small business loans from banks
Get small business grants