How do you raise the start-up capital for your business?

This question is probably the biggest problem faced by those who want to become an entrepreneur.

Personally, I’ve heard friends say that if only they had enough capital, they would really quit their jobs and put up their own businesses. Admittedly, I was also burdened until I made some researches and practically applied what I learned.
I’ve found out that there are actually many ways to do this. Some are easy and some are not. Some are quite obvious while some takes a little creativity and a bit of due diligence to make it work.

So if you’ve always wished that you had enough funds to start your own business venture, then I hope that these eight ways can help you raise the capital you need to become an entrepreneur.


1. Your Own Savings
The most obvious way to get your start-up capital is to save money. Be frugal, live below your means and pay yourself first. The advantage of this method is that if your business fails, then you owe nothing to anybody and you have no financial burdens to worry about.

However, although this may seem ideal to some, it could take a long time before you finally have enough money saved to start. Recommended for those who are not in a hurry to start a business and those with very low risk-tolerance.

2. Liquidate Assets
Aside from digging into your savings account, you can also sell some of your assets. My father’s friend sold their old family car to put up a small photocopying center. Depending on the amount of capital you need, you could simply look around the house and sell whatever you have such as those tech gadgets and appliances, your jewelries and even some of your furniture or appliances.

If you have portfolio investments, you can ask your broker if you can liquidate some of your paper assets or withdraw from your mutual fund or time deposits.

3. Work For Extra Income
We often look for ways to earn extra income only when we are in financial need. What many people don’t realize is that, finding a second job or working on a sideline is a great way to raise capital for your dream business. Assuming that your current employment can cover all your financial requirements, then the profits from your extra ventures can all go straight to your start-up funds.

Going this route can be time consuming and exhausting but it’s relatively faster than just doing the two previous methods.


4. Take Out A Personal Loan
A personal loan is something you can leverage on especially if you are employed. Depending on your credit history and employment status, most banks are willing to offer these types of loan(salary loans) without much hassle and without collateral.
Micro Finance institutions can also provide non-collateral personal loans to those who can present to them a sound business plan, 

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