This is a brilliant fundraising option for African entrepreneurs, the process involves raising money from a pool of people through online platforms. Although family and friends are the likely primary source of seeking funds sometimes this same family and friends do not even believe in the dreams of entrepreneurs especially here in Africa.
The best situation from most African family especially parents is finding a good-paying job and being happy with that, however in recent times the trend of work for African youth has changed, more young people are turning into the wheels of entrepreneurship.
Crowdfunding can be a better option if family and friends fail to yield any results.
The preorder style of raising funds is not so popular but can be the best and strategic, and the most inexpensive ways to raise money for a business especially a business involve of trading activities
Entrepreneurs can run on pre-orders from customers to make headway with business. It is key to identify the potential market that would want to patronize your products. And approach such a market with a plan to convince customers to preorder. This style often works best with small business; one can look at their immediate contact to start with. It is critical to win the trust of customers in order for them to make the preorder purchase.
Leveraging on funding opportunities:
Interestingly these are different funding opportunities from Government. Private institutions and NGOs are providing financial opportunities all over Africa. It has been well proven that entrepreneurship is the way to go; a channel to develop the economy and foster development thus many institutions both private and the public have developed initiatives and projects to support budding entrepreneurs. Some of these funds can be accessed through business pitching competitions, essay writing contests, etc. Although these opportunities are available, it takes one to research into them to aces the right one.
It is alway said that two heads are better than one, another smart of starting a business it joining forces with the right person to set the ball rolling. The strategic partnership will not only provide you the money but also come with extra resources, which include skills, expertise, network from the other person. It is essential to choose the right partner, analysis what exactly the other party is bringing on board, with effective planning and legal agreement, partnerships is often one of the best ways to set a business rolling.
It is often one of the difficult sacrifice for entrepreneurs, as most savings is purposed for others things, but this is the point you have to forgo everything to make your dream business come true. With hard work and a detailed plan, the business can easily blossom for you to have get back your initial capital placed in the business.
Rents: Renting out your assets for a time duration to get money in return is also one other way to raise funds, instead of selling them off. Although this process can be inconvenient, one needs to sacrifice to achieve a greater goal. You can rent your house, properties, car, etc. Again clear agreement should have ensued between both parties before anything proceeds
Entrepreneurship is full of sacrifices. As an entrepreneur, you should be ready and willing to give away some of your shares in order to receive money to start. Finding a business financier is also an ideal way to go if all other alternative fails. The investor is as important as the entrepreneur therefore clear agreement should be made so both parties can be happy to start the business.
In Africa, funds are difficult to raise it is important for entrepreneurs to do their homework, test their ideas, understand their markets, identify trends and study competitors. The idea or goal is not 100% perfection, but intense research ought to have been pushed into the idea before walking or speaking to anyone. As an African entrepreneur it is key to ask yourself, and family if your idea is worth investing or not before making any attempt to set your ball rolling.
Article from AFRIC Editorial
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