How To Source For Funds for your Startup Business

Millennials world over are moving away from the traditional 8-5 jobs to a more interactive work culture. Start-ups, are the new trend. Young people are becoming more aware sooner and therefore choosing their career paths wisely. Most pursue passion to find profit.

You would be surprised to know that most are moving away from desk jobs to do farming. Agribusiness is the next big thing.

Closer Home

Right here in Kenya, there are so many start-ups today. People are pursuing paths that leave some of us baffled. It is a path that no one could have thought profitable a few years back. However, the narrative has changed today.

I will give a great example of Centonomy by Waceke Nduati. Who would’ve thought it necessary to start a school to teach people how to handle their hard earned money? Not you and I of course.

If anything, we all feel entitled to what we have earned and are therefore it is for us to decide how to spend it. It is ours after all!

How To Raise Funds As A Startup

There a number of ways any entrepreneur can raise money to kick off their business. Being well aware that banks hardly loan startups, it is therefore very wise to know how to approach investors to help you in your venture.

1.Bootstrapping

I first learnt about bootstrapping at an entrepreneurs’ forum facilitated by WeCreateKenya. It took me a while to clearly understand how it works; let me break it down for you.

Bootstrapping is simply starting a business with personal savings or those from friends and family.

When considering bootstrapping a a way to fund a startup, it means you have been saving over a period of time.

Other aspects that can be termed as bootstrapping will be, working from home instead of renting an office space.

2. Angel Investor

This term is thought provoking in a way. How is an investor an angel? It is common knowledge that anyone who invests in a business is looking to reap benefits. Therefore, it means that there is always a selfish motive behind investing.

An Angel Investor take up financing of a startup and also get involved in its day to day run to ensure it succeeds. They will go as far as mentoring the entrepreneur.

3. Venture Capitalist

These are financiers who listen to your business idea, then gauge its viability. If they see potential in it, they’ll provide the funding and be part of the ownership of your startup. Venture capitalists are not involved in the daily operations but only through funds.

4. Crowdfunding

When crowdfunding, you raise small amounts of money from many people to help you start off your business.

Crowdfunding differs from fundraising in this way. Fundraising is done solely for charity causes and is done offline.

In The End

Start-ups focus on one’s passion more than how well educated they are in the field. What is that passion that you keep pushing aside? Take it up today and you will be surprised at all you achieve.