5 Powerful tips for funding your business ideas - An informative presentation shared by Mara Mentor. https://mentor.mara.com/

1. 5 POWERFUL TIPS
For funding your business
idea

2. What are we talking about?
Most entrepreneurs do not have the luxury of having millions in their bank
account, especially not when you are starting out with a new business.
You may be full of amazing ideas and powerful ways of implementing those
ideas, but you need finance in order to be able to put those ideas into action
and make a successful business out of it.
Needless to say, this becomes one of the major challenges faced by
upcoming entrepreneurs: finding funds for launching and expanding their
start-up business.

3. Past & Present
The process of funding was quite tedious and difficult in the olden days, but
this is not the case now.
Today, people are recognising the importance and advantages of start up
business ventures. Start ups generate employment, create multi-skilled
workforce, and increase the entrepreneurial spirit, leading to the
strengthening of the country’s economy.
There are many options available for the financing of a new business idea.
However, figuring the source that suits your requirements and type of
business in the best possible manner is a multifaceted process.

5. Crowd funding
As the name suggests, crowd funding involves taking money from the public in
the form of their private finances, by presenting your idea that needs funding.
This method is swiftly gaining popularity. Crowd funding is a good option for
financing a business idea as it offers not only funds but also visibility through a
platform to showcase your business to the world.
However, for this idea to work smoothly, it is important that you select like
minded people to ask funds and commitment from. Also, there should be very
clear knowledge and understanding of the business venture in the minds of the
people.
Some companies that have received crowd funding are Ouya (raised $8.6
million), Tile (raised $2.68 million), and Pirate3D (raised $1.44 million).

6. Angel Investor
Investors lending money to start up businesses with the knowledge and will
to recognize and accept risk as well as demand relatively low control and
ownership equity in return. Usually, angel investors are established
entrepreneurs that have made their fortune and eventually look at investing
in new and innovative start ups.
The benefit of having angel investors goes beyond the finance as these
experienced entrepreneurs can give valuable business advice, guidance
and connections.
Some companies that received angel investing are Google, Facebook,
Skype and Twitter.

7. Venture Capital
It is a very common means of financing. Venture capitalists are private
investors who provide funds to promising start ups. With this type of financing,
budding entrepreneurs can acquire a hefty amount of capital.
The main benefit of venture capital financing is the possibility for company
growth and development that would otherwise not be likely through bank loans
or other methods. Also, repayment to these investors isn't essentially a
compulsion like it would be for a bank loan because venture capitalists look for
ownership to implement control to counterbalance any high risks.
Some of the companies that received venture capital are Facebook, Solyndra
and Western Integrated Network amongst many others.

8. Friends and Family
This comprises of money that is borrowed by an entrepreneur from his
family members and/or close friends in order to help finance his start up
business.
Acquiring money from friends and family is the most common source of
funds. The advantage of this type of funding is that such lenders are
flexible with respect to the loan amount, time period and interest rate.
This makes the financing process less complicated and tedious.

9. Bank Loans
Availing a bank loan is another prominent source of getting funds. People
opt for bank loans for all kinds of financial requirements. This is due to the
fact that bank loans range within a wide bracket.
Bank loans ensure a long term relationship between the bank and the firm
which gives rise to the possibility of a smooth future correspondence
between the two.
As mentioned earlier, almost all the major businesses have taken financing
from banks.

10. What is more important?
Now, when you know the various ways of finding funds, it is necessary to
understand how you can use the money to grow your
business!

11. Mara Foundation’s Ambition
We enable, inspire and empower ambitious entrepreneurs in Africa. With the support of our Mara Mentors we will:
Inspire millions of young people in Africa to
entrepreneurs.
Teach entrepreneurs new skills.
Enable entrepreneurs to turn business ideas into a
reality.
Guide business owners to grow businesses and
(more) employees.
Empower entrepreneurs by providing a platform to
showcase their business and build their network.

12. THANK YOU
Website: mentor.mara.com
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Customer Support: support@mentor.mara.com
Mara Foundation is supported by a
number of partners, including: