Generating revenue for an investment is an Herculean task ( a difficult task) for people who are not privileged to the minimum capital required for the investment. The fact that over 70% of start ups fail and 90% of new investors loose the go bankrupt or loose their starting capital makes things worse. Most of the investors you speak to will be unwilling due to the attached risks associated with beginners.
In this post some various ways of generating capital will be discussed.
For Investment
Run a demo: No investor would like look at your product without you having to instill some level of confidence in him. There are a lot of people with viable business claims but only a few can actually deliver. Having a demonstration of what ever investment you propose will give you an hedge over other investors as your past performance may convince them you are worth a try. The longer you be diligent to run the demo the better. A demo doesn't have to be a virtual currency you can also run a demo with real life funds howbeit they will be far smaller than your own. Examples can be opened here if you trade forex or here if you trade stocks.
Get into contests: There are several contests for investors who have sound trading skills. These contests exist for several investment types. Stocks, cryptocurrencies, binary options, Forex, PAMM traders etc. They offer a great platform to raise capital. Rewards usually range from $500 to $1000 and could sometimes be as high as $5000. For an investor who is very confident of his/her strategy this is a very nice place to start.
Get a loan: Banks are a great way to start your investment career, especially if you have a good credit rating. If you previously have an overdraft facility you can easily apply for your limit to be increased. Overdrafts are easier and often don't need collateral. Other than overdrafts, you can also apply for a standard loan however the bank will want to see an example of your past performance and the risk involved in your investment strategy.
Contact friends and family: Friends and family are a great way to kick-start your investment career. They fact that they want you to succeed means the they will be more readily willing to part with their money than conventional banks. More so, they are not likely going to be pressuring you for a quick return which is great because pressure can make you make careless decisions when investing.
Work Part-Time: Working part-time is a great way to raise capital. This is particularly a preferred decision for those who don't want to share their returns with the bank as interest or investors. You must however note that you can not trade intra-day when working part-time as you will not be able to monitor your trades as often as you should.
For Business
Develop a prototype: Unlike investments where a demo or statement of account is needed to get investors attention, businesses require a physical prototype for bakery a piece of your product; For an electronic, the product prototype. Kindly note, it is very compulsory to have a business plan irrespective of whether you have a physical product or not. This will help investors know how long it will take to get their capital back, the challenges the business will encounter etc.
Advertise to investors: There are a lots of investors out there that are looking for the next big business to invest in however, you have to be able to showcase your business for them. Advertisements is a great way to do so. you can do so nowadays via e-advertising such as Facebook, Google Adwords, twitter etc.
use LinkedIn: Linkdin is an amazing platform for professionals whether they be in business or be looking for jobs. You can easily reach out and build a connection of investors who will be looking to discuss with you to bring your investment plan to pass. You can use their premium features which allows you to contact a number of high profile professionals or investors. An ability to know who to contact and what to say will always give you an extra advantage.
Contact friends and family: Funds from Friends and family as said earlier are readily available because of the relationship ties. However don't get offended or disappointed when you are unable to convince them. You are expected to do or present a business plan or make cash flow projection to easily convince them. A cash flow projection is simply the difference between expenses and income expressed as a function of time. see the example below.
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| Adapted from https://articles.bplans.com/category/plan-as-you-go/5-dressing-and-growing/ |
Loans: It is usually very difficult to get loans from banks as a startups because of their high failure rate however, if you have a very good business plan you may be able to convince them.
Utilize Seedinvest and Angelist: These are websites that allow startups to showcase their companies to investors (usually called angels) who look to invest in the company in return for a certain percentage stake in the company.
Conclusion
With the rise of social media, startup sites, and awareness in investments it is now easier than ever to get funds to start your company. More so, nothing stops one from utilizing all the channels discussed above to boost your capital. Do well to utilize them.
Great Links to Use to Raise money
With the rise of social media, startup sites, and awareness in investments it is now easier than ever to get funds to start your company. More so, nothing stops one from utilizing all the channels discussed above to boost your capital. Do well to utilize them.
Great Links to Use to Raise money
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