Financing your Great business idea
Idea To Cash
Transforming your idea into money
Money is the modern day medium of exchanging goods and services.We all has needs meaning that we are need money to make the ends meet. Our brains are the greatest resource that we all have.It is the way that we apply our brains that determines the level of our prosperity and success in life.We should therefore optimally utilize this great resource to make money. Many of us have great ideas which when implemented can not only help us make money but also move our societies to greater heights.The biggest challenge is how to fund this idea . The good news is that in this 21st Century there are numerous ways through which you can live your dream.
A Business Plan
You may be asking yourself what is a business plan. I have an answer for you. A business plan is a formal statement that clearly describes and outlines your business idea. It should be systematic, easy to go through and understand. This is the initial step which converts whatever you have in your mind into something that is tangibe.It shows what you plan to do and how you plan to do it.
Sections of a business plan
- Vision statement – It carefully describes what you are planning to offer or produce whether goods or services.
- A clear description of the product.Whether goods or service.Concentrate much on how the product is unique when compared to the others in the market.
- Market analysis – It shows that you have carefully researched the business environment you are about to enter.You know who your competitors are. You understand their weaknesses and strengths.You understand the current market forces which may affect your business both positively and negatively.
- A description of the type of human resource personnel that you require.How many managers, sales person and the level of experience they should have.
- Marketing strategy – It is in this section where you identify your marketing channels , whether you will be selling directly to consumers or you will involve intermediaries. You should also capture information on marketing media you will apply.This may be a company website, social site etc.
- A SWOT analysis of your business - SWOT stands for Strengths, weaknesses, Opportunities and Threats.The first two are internal factors which may influence your business positively or negatively. The latter two stands for the external factors which may influence your business.
- Cash flow statement – You capture the expected revenues and expenditures in this section.
- The projected business income.
- A brief summary – Shows whether your idea is worth funding. Carries the judgment.
Selling assets to fund business idea
Financing your business idea
Now that you have a clear plan of what you want to do, funding will not be a problem. I will clearly outline the various project funders who you may approach for financing.
- Royalty financiers – There are people who are rich.The have lots of money in banks. They identify people who have great business ideas and finance them.The two parties then agree on the equity stake or the percentage of the company each of you is going to own.
- Banks – There are banks which lend cash at some friendly interest rates as a way of funding young entrepreneurs.
- Crowd funding – Groups of people mobilizing their finances together then loaning one of the member.
- Selling unutilized assets – You may be having an old car,house etc.If the idea has some good returns it is worth risking.
- Friends and family – You can approach your friends or family members for funding.