20 Result Oriented Ways to Generate Startup Capital

20 Result Oriented Ways to Generate Startup Capital


One of the biggest challenges for entrepreneurs of all ages is getting a hold of startup capital. But for young and first-time entrepreneurs in particular that task can be even more formidable. Some banks and investors typically like to see that you’ve started successful businesses in the past or that you’ve worked in your chosen industry.

Raising capital is a very essential step to starting your business because no money means no business.

Fortunately, in present times, help is here. See below 20 ways you can access start up funds.

1. Personal Savings

As an aspiring-entrepreneurs, your personal savings should be your first point of call when seeking for fund to start-up your business. If you believe in the venture you are embarking on, then you should be more than willing to empty your account to finance your business.

2. Family Members

Your family members are supposed to be the closest to you. What’s more, they are easier to approach for start-up capital to finance your business. Some parents even save-up and establish their children in the line of business they desire so that their family dynasty can be sustained.

3. Approach Friends and Neighbours

You can also generate start-up capital from your friends and neighbours, especially if they believe in you. You don’t necessarily need to be getting the money for free; you can ask for a loan to pay back with little or no interest.

4. From the Banks

Banks generally are established not just for the sole aim of saving money for people, but also to issue out loans to those who need it. If you are sure of the profitability of your business and you have the required collateral, then the bank is your best bet to get all the money you need to start up your business.

5. From Cooperatives

Some co-operatives’ sole aim is to give loans to people who can’t secure loans from banks due to the stringent rules obtainable in the banks. Approaching such a club would yield result.

6. Go For Government Loan

Most governments encourage their citizens to start business, because it will always impact in the economy positively. Hence there is always money available for entrepreneurs to apply for. Sadly most people aren’t aware of it. Besides, most government loan is almost interest free, as long as your intended business falls among the businesses they are trying to encourage people to establish.

7. Sell Your Valuables

If you truly believe that your business is worth the risk and is going to be profitable, then you must be willing to put everything on the line for it. You can sell your car, gold, jewelleries et al to generate fund for your business. Besides you can always get them back when your business starts generating profits.

8. Seek Partnership

If you know you’ve got a brilliant idea that can fetch you cool cash and you don’t have the money to start-up the business, you can seek for partners that can invest their money. These partners may seek for you to share your profit with them, or they could have other terms and conditions.

9. Savings And loan Firms

You can access loan from such firms. Having some form of savings with these firms gives give you a leverage to ask for the amount you want.

10. Funds through Thrift Societies

Thrift society simply means a group of people contributing money with the sole aim of giving it to a particular member of the group and ensuring that it goes round within a stipulated period. This means affords you the opportunity to have bulk cash to execute your business as an aspiring entrepreneur.

11. Approach Your Mentor

This is easier for those who learn a particular trade or line of business from their mentor. Mentors can loan or even give you money for free to start up your business. Some of them even see it as a responsibility to establish you as long as you’ve served them faithfully.

12. Apply For State or Federal Grants

Government will always have funds for those we are willing to help build their economy. Such fund is in form of grant. You can apply for it if you know you are qualified for it as an aspiring entrepreneur.

13. Equity Financing

You can raise start-up capital for your business via equity financing. Equity financing simply means using your house as collateral when seeking to get a loan. If you’re ready to temporarily sacrifice your house for your business, then go for it.

14. Sell Your Stocks and Bonds

Depending on how very important your business idea is and how urgent you need the capital; you can sell your stocks and bonds to generate fund to start-up your business.

15. Approach Philanthropists

There will always be a couple of philanthropists who are willing to give serious budding entrepreneurs money for free to start up their business as long as it aligns with their ideals. Seek such people and table your well crafted-out business plans; you never can tell, they might be interested in you.

16. Get A Short term Employment

You can seek for a short term employment just for the purpose of raising the start-up capital required for your business. Besides generating the fund, you can also learn one or two skills that will be needful in your business.

17. Visit Credit Unions

Credit unions are nonprofit organizations that started from Germany in the early 1900s and are now in the United States and some other developed countries. Although they don’t normally give out big loans, you can generate small loan from them to add to the pool of cash you already have to start-up your business.

18. Non Governmental Organization

There are some NGOs that are established with the sole aim of helping start-up businesses. Seek for such NGOs and apply for their assistance.

19. The Economic Investment Agency

The Economic Investment Agency cannot be found in most countries but you have them around in developed countries. It is another potential source of government funding for start-up businesses.

20. Educational Institutions

These days, most colleges and tertiary institutions establish programs that help people (their students) who want to venture into the entrepreneurial world. You can get the finance needed to get started not just the skills. One challenge with this is that it can only be accessed by their students.

In conclusion, you can choose more than one medium mentioned above. Depending on the capital involved, it is advisable to loan only what is needed for your business.

Some folks add their personal need to the loan and at the end of the day, paying back becomes an issue because of the huge amount involved. This should not be your case.

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Published by Valentine Belonwu

My name is Valentine, founder of this site, an entrepreneur working as a moderator at Bizsugar a small business community news site. Connect with me on Google+ at Valetine Belonwu


  1. Moses · March 15, 2013

    Nice post Valentine
    Now i know how to surce for my capital and turn my business idea into reality.

  2. Hamayon · April 8, 2013

    Hi Valentine,
    Nice tips are these, well all ways you described here are good to arrange money for the startup. But mostly effective are money support and temporary employment. Why I mentioned these two because I’ve personally experienced these 😉

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