Growth Impact
FUNDING YOUR BUSINESS
Not only are there costs involved in maintaining a golf course and keeping it perfectly manicured, every golfer also has to be able to fund their game to allow them to eventually play with the best. The cost to entry is often the deterrent to start.
Starting a new business from scratch requires capital, and so does managing and growing any existing business or taking on new projects or ventures.
The question is “where does this capital come from?”
Funding your business or business ventures should be treated with care and wisdom.
Instead of borrowing money, the preferred option would be to use your own capital but what if you have little to no money? Then you have no other option but to search for alternative funding sources and loan options to obtain the necessary capital for your business.
Let us explore how you can get the initial capital for your business and where you can go to secure funding for your start-up. Acquiring capital for your business with no capital can be daunting but not impossible. Multiple financial institutions, agencies, organisations, and platforms operating in South Africa offer you safe and secure loans for your start-up or new growth-venture of project. There are plenty of options to choose from.
Any of these organisations will, however, ask you to have a few things in place before approaching them.
Creating a business plan together with a budget is important to secure the funds you desperately need. Your business plan gives the lender a rough map of what your business is about, how will your business succeed, expected expenses and costs, what are your target market is, etc.
The government of South Africa has introduced multiple loan programs for those looking to start a business without any investment or money of their own. The Small Enterprise Finance Agency (SEFA) and Small Enterprise Development Agency (SEDA) comes to mind.
There are multiple financial institutions that are geared to assist companies financially. Startup and established businesses can apply for funding to capitalise the required amount needed. Financial institutions have many different products to choose from e.g., Rent to buy agreement, factoring, notarial bond, bonds etc. Venture capitalists are always on the lookout for business opportunities.
Venture capitalists are professional investors who invest in high-growth startup for a high percentage of investment return. The advantage of this type of funding is that it can provide a lot of money to help a startup grow quickly. The downside is that venture capitalists often want a significant amount of equity in the company in return for their investment.
Apart from the above are there also many other sources of funding in the unregulated finance market. Use crowdfunding to fund your business or specific project. Search online platforms and databases to find and contact the right angel investors for your startup. Angel investors typically fund projects during the early development stages but might require that your production is utilized in their preferred choices.
Friends and family might be silent business partners who know you well and trust your efforts. Their requirements can be less influential but be careful of relationships and perceptions that can harm relationships.
There is a rule in golf that limits golfers to borrow clubs during a game to the extent that they’d rather not do it. Then there is another sensitivity amongst golfers …lending you their clubs to try, is not an option. Both instances comes with risk. The first could be a breach and cost you a one hole deduction. Golf clubs are expensive and personal and the risk of lending your golf clubs to other players in the second instance could cause damage if the borrower handles them incorrectly. Golfers see their golf clubs as an investment to be treated with respect.
Consider partnerships to build your own company over time. Partnerships can be beneficial in the sense that you can acquire the necessary capital and build the business for both you and the partner. By issuing share capital in your business can you still be an influential shareholder without diminishing your rights. With partnerships or shareholder agreements the timeline of involvement can be determined with a reward to the partner when exiting the business.
According to Dr Anton Rupert partnerships done right, are not exploitation, but the shared creation of prosperity and its fair distribution. The Rupert empire was built around partnerships, and we all know the outcome of those relationships.
With own capital and/or partnerships to build your business, you stay in control of the destiny of your company, and you don’t bow down to the master of debt bound to drop the ball in the water or sink your company if not managed well.
Sometimes is it better to work hard and become the business that you want it to be rather than to extend yourself and dance to the rhythm of the outside lender. A borrower is always slave to the lender.
Starting a new business from scratch requires capital, and so does managing and growing any existing business or taking on new projects or ventures.
The question is “where does this capital come from?”
Funding your business or business ventures should be treated with care and wisdom.
Instead of borrowing money, the preferred option would be to use your own capital but what if you have little to no money? Then you have no other option but to search for alternative funding sources and loan options to obtain the necessary capital for your business.
Let us explore how you can get the initial capital for your business and where you can go to secure funding for your start-up. Acquiring capital for your business with no capital can be daunting but not impossible. Multiple financial institutions, agencies, organisations, and platforms operating in South Africa offer you safe and secure loans for your start-up or new growth-venture of project. There are plenty of options to choose from.
Any of these organisations will, however, ask you to have a few things in place before approaching them.
Creating a business plan together with a budget is important to secure the funds you desperately need. Your business plan gives the lender a rough map of what your business is about, how will your business succeed, expected expenses and costs, what are your target market is, etc.
The government of South Africa has introduced multiple loan programs for those looking to start a business without any investment or money of their own. The Small Enterprise Finance Agency (SEFA) and Small Enterprise Development Agency (SEDA) comes to mind.
There are multiple financial institutions that are geared to assist companies financially. Startup and established businesses can apply for funding to capitalise the required amount needed. Financial institutions have many different products to choose from e.g., Rent to buy agreement, factoring, notarial bond, bonds etc. Venture capitalists are always on the lookout for business opportunities.
Venture capitalists are professional investors who invest in high-growth startup for a high percentage of investment return. The advantage of this type of funding is that it can provide a lot of money to help a startup grow quickly. The downside is that venture capitalists often want a significant amount of equity in the company in return for their investment.
Apart from the above are there also many other sources of funding in the unregulated finance market. Use crowdfunding to fund your business or specific project. Search online platforms and databases to find and contact the right angel investors for your startup. Angel investors typically fund projects during the early development stages but might require that your production is utilized in their preferred choices.
Friends and family might be silent business partners who know you well and trust your efforts. Their requirements can be less influential but be careful of relationships and perceptions that can harm relationships.
There is a rule in golf that limits golfers to borrow clubs during a game to the extent that they’d rather not do it. Then there is another sensitivity amongst golfers …lending you their clubs to try, is not an option. Both instances comes with risk. The first could be a breach and cost you a one hole deduction. Golf clubs are expensive and personal and the risk of lending your golf clubs to other players in the second instance could cause damage if the borrower handles them incorrectly. Golfers see their golf clubs as an investment to be treated with respect.
Consider partnerships to build your own company over time. Partnerships can be beneficial in the sense that you can acquire the necessary capital and build the business for both you and the partner. By issuing share capital in your business can you still be an influential shareholder without diminishing your rights. With partnerships or shareholder agreements the timeline of involvement can be determined with a reward to the partner when exiting the business.
According to Dr Anton Rupert partnerships done right, are not exploitation, but the shared creation of prosperity and its fair distribution. The Rupert empire was built around partnerships, and we all know the outcome of those relationships.
With own capital and/or partnerships to build your business, you stay in control of the destiny of your company, and you don’t bow down to the master of debt bound to drop the ball in the water or sink your company if not managed well.
Sometimes is it better to work hard and become the business that you want it to be rather than to extend yourself and dance to the rhythm of the outside lender. A borrower is always slave to the lender.
