Financing a business could be so challenging, especially if you don’t involve the essential channels of funding. Bank is a major player as far as business financing is concerned. Dealing or contacting bank to finance your business, you need to write your business plan by yourself with the primary aim to help you decide whether or not to start or grow a business set goals and benchmarks, then use the process to develop a set of consistent and compelling messages to your bank, describing your business details contained in your business plan proposal on how you intend to run your business with reason(s) you are so sure you’ll be successful in your entire business activities, through which your bank can see, and possibly consider it.
Apart from the bank, the other important readers of your business plan consist of potential funders, primarily, Loan(Debt) and Angels(Equity) . The above are the wide range of funding channels, and they are structured such that they meet up the requirement. You may have to modify your business plan or its messages contained in it to help get the attention of the funders so as to gain the best chance of being funded without much delay, of course.
Always have this point in your mind that bank loan is a debt, an obligation which must be paid back. Secondly, funding from angels is termed a capital infusion(equity). The individual or group necessarily receives their rewards when they make a profitable exit in several years, time and according to the agreed terms. You must know that there are other funding sources, but the above are the two major funding sources so far covered here for now.
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