The major excuse many people give for not starting their dream businesses is lack of capital. Capital is usually referred to as the financial resources that a business needs to get the business started to deliver products and services to the consumers, clients or customers. Many good business ideas do not become a reality because of lack of funds to execute them. It can be very frustrating to have business ideas and not have the capital to execute them. Every entrepreneur must settle the issue of a capital source in their business plan.

Below are 12 sources of start-up capital that you can use to get your business off the ground. Take a critical look at each of them and determine the best option available to you. Start with the most available and easiest option which suits your kind of business and environment.

Begin with your personal savings

How much cash do I have at hand? This is the first question you should ask yourself when you think of starting a business. I usually advise people to always start small. Most times many persons are looking for a large sum of money to start their business whereas they can start with the little money that they have as a way of testing the waters and source for more funds to grow the business as time goes on.

Almost every business can be started small. There is always a small version of every business you see. Also, most large businesses you see started small and from personal savings. Mark Zuckerberg started Facebook in his dorm room at Harvard. Steve jobs started Apple Computer from his parents’ garage. One of the advantages of starting small is that it gives you the opportunity to make all the business mistakes would most likely make without losing large sum of money or going bankrupt.

Instead of waiting endlessly for that big loan, you can start with that little personal savings that you have. If you don’t have a personal savings, you can go and work for someone else for some time and save part of your monthly income. When you get a business idea, you may have to work for other people for some years, and save up some start-up capital.

Ask your family and friends

What are family and friends for? They are there to help one another to become better. I prefer friends or family members asking me for financial support to start a business than for them to ask me for a loan to meet their personal needs. I am very willing to support my friends and family members and in fact, anybody who comes to me for business support. The reason for this is that by giving financial support to others, you are empowering them to be self-dependent and this way they can meet their needs by themselves, instead of pestering you all the time for help. Consider asking your friends and family members for financial help to start your business. Many of them will be willing to give you their support.

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Source: http://myafribusiness.com/how-to-raise-start-up-capital-for-your-business/

This is very educative and loaded with many useful information. Thanks OP for posting this. I think this should be taken to front page so that many more persons can benefit from it.

Good one