10+ Smart Ways To Raise Capital To Start Your Business In 2020

how to raise capital for a startup

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As entrepreneurs, we face a whole lot of hurdles in trying to build a business from raw materials, Staffing, machinery and tools, technology and solving the above mentioned problem requires money.

ways to raise capital for a company

Most ideas never get to physical materialization because they lack money. Business and startups most times fails to stand the test of 5 years before they crumble. All these relies in the soul of capitalism.

What Is A Business Capital ?.

Capital is a term for financial assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.

Capital can also be associated with capital assets of a company that requires significant amounts of capital to finance or expand.

Capital can be held through financial assets or raised from debt or equity financing. Businesses will typically focus on three types of business capital: working capital, equity capital, and debt capital.

Type Of Business Capital.

According to financial experts there are three form of business capital and they are.

1.Trading Capital.

Trading capital may be held by individuals or firms who place a large number of trades on a daily basis. Trading capital refers to the amount of money allotted to buy and sell various securities.

2 .Working Capital

This is a capital of a business which is used in its day-to-day trading operations, calculated as the current assets minus the current liabilities.

3. Equity Capital.

In finance, Equity is ownership of assets that may have debts or other liabilities attached to them.

Equity capital is funds paid into a business by investors in exchange for common or preferred stock.


4.Debt Capital.

This capital is usually in form of loans.

Debt capital can be obtained through private or government sources. Sources of capital can include friends, family, financial institutions, online lenders, credit card companies, insurance companies, and federal loan programs.

Debt capital can be obtained through private or government sources.

Sources of capital can include friends, family, financial institutions, online lenders and the banks.


This is one of the most unsafe way to raise money for your business.

Briefly in this article i will taking you on a brief tour on how to raise money for an existing business or a news business.

How to raise capital For Your Business.

Most business needs to time to grow and going about seeking debt capital can kill your business because your business needs a lot of time to grow and mature and in most cases a debt capital does not give your business that opportunity.


The Below listed methods are how to raise money for a business without a loan

1. Sell the idea.

Most entrepreneurs feels reluctant to sell out existing ideas an in so doing many promising venture and solution never become reality.

how to raise capital for business expansion

Never feels to reluctant to sell out an idea, Ideas will always come. Truth be told, Innovators and creators always have multiple idea in their thinking bank.

So don’t be scared to release that idea. It might just be a stepping stone to bring all other ideas and innovation in your mind to life.

A perfect example can be cited in the case of the early coca cola Days, the founder of coca cola John Stith Pemberton never had the idea to bottle the cola drink, the cola back then was sold in drums directly into a cup not until Mississippi shop owner Joseph A. Biedenharn began bottling Coca‑Cola after he was impressed by its sales.

how to raise money for a business without a loan

He sold the drink to his customers in a common glass bottle called a Hutchinson.

This man holds the record of giving out this idea and is relevant till today.

Legend has it that he own part shares in the coca cola enterprise.

2. Savings.


Take it or leave it, if you really follow the natural law of 70- 30 ratio, you will definitely have more than enough to kick start any idea you have ever dream off and i mean not spending all that you have.

As an individual it is always right to learn the ways of the little ants by cultivating saving habits. Economist and Financial expert recommends you are free to spend up to 70% of your income but you must save 30% as the case may be.

how can a private company raise capital

Little drops of water makes an ocean, you never can tell what that little amount can become in a short while.  Learn the ways of the ant who never spend all they have and always make sure they have something to fall back to.

3. Family And Fiends.

You family and friend could also do a lot to raise a whole lot of money for your startup idea or business.

If your business plans postulates that you need 1 Million Naira  or lets say $5,000  to start a business you can talk to 5 people to help you with 200 Thousand Naira  or better still 10 people to help you with 100 Thousand Naira  or 20 people assisting you with 50 Thousand Naira as the case may be.

how do corporations raise capital

I know that our hands are not all equal, but all the same, if you cant find reasonable people among st your family and friends to help you kick start your business by contributing in one way or the other then you have relationship disease, I highly suggest and recommend you change your circle of friends or better still explore all other option involved in raising capital for your business.

4. Selling your liabilities/assets.

Most of us in one way or the other were privileged to own a major property or goods either previous purchase or inheritance these could include houses, cars , jewelry and other business assets like stocks.

how to raise capital to buy a business

Trading this off for some cash to start a business would not be bad idea at all.

5. Marketing for commission.

Whether you agree with me or not, every one is a sales man. We humans are wired to connect and reach out to people.

Taking up a sales job and receiving commission is not a bad idea either, so many companies and individuals have goods that need to be sold, approach them and discuss commission. commodities  ranging from cars, houses can be sold and be used to generate high level commission.

If you do not have access to the above mentioned commodities, you can look for a local factory, warehouse or industries around and approach them for sales.


6. Start with the idea.

There are still ways to go around getting our business idea to work even without the appropriate fund at hand.

methods of raising capital pdf

Most times angel investors and business funds needed to sustain the business do not show up until we start something no matter how small it may be.

There is power in starting small. You never can tell, Someone somewhere needs your innovation but is just looking for a starter.

A perfect scenario can be cited with the wright brothers who started had idea of the aircraft to design the Airplane, They did not think of funds to build bigger planes or expand the industry, they just simply started with their idea.

Another example is  Colonel Harland Sanders who Started Kentucky Fried Chicken Popularly known as KFC during the great depression which tool place in America in 1930, despite all economic downturn , he was able to scale KFC to a widely recognized  business worldwide.




Other smart and stress free ways to raise capital for your business are.

7. Gratuity and seasonal benefits.


We human beings are made up network of other people, somehow along the journey from childhood to adulthood we meet and establish new connection in form of relationships, either family, work and business.

Most times we receive seasonal benefits as a form of reward from our previous and past relationships. This benefits can come in form of cash, kind and all useful material benefits useful in running our lives. This can also be applied in the area of work. Most employees devote their lifetime and energy to a company they previously work for and it is no doubt as soon as they pen down their resignation they are often rewarded with one benefit or the other in most times in forms of gratuity and seasonal benefits like pension and the likes.

Having brought clarity to this point, it is very obvious that an aspiring business owner and entrepreneur can make use of this benefits to start a  business of his/her own without having to involve any other third party.

Gratuity of some retirees most times runs into millions, the same applies to seasonal benefits of most individuals that involves cash, luxury houses, expensive jewelry tech gadgets.

Don’t just wait  for any other source for your business purpose, that channel can be utilized as a liable source for startup capital for your business.


8. Mentors and angel investors.

By now you should know that the business world has two categories of people, the innovators and the starters.

The innovators are more of like idealist, most time they do not always have physical cash at hand.

The starters are like investors, they have the money but looking for a very profitable idea to invest in. People like Warren Buffet and Robert Kiyosaki fall under this category.


The bottom line is there are people ready to invest in your business provided it scalable and optimistic. You just have to be able to locate them, and to raise the hopes of your business being able to receive fund, you have to prepare a business plan, that’s all they ever want to see.

9. Business Grants.


I am going to be a bit elaborate on this point because it stands as one of the surest means to get startup funds for your business without loosing it.

Grants are financial aid needed for your business. A whole lot of African entrepreneurs are yet to really understand and yet alone be able to successfully access grants, I am yet to receive any sort of startup grant for my business yet but i sure know people who have received grant multiple times for their business and are still in the business of collecting grants yearly for the sole purpose of business.

click the link to read my article on getting business grants.

There are over thousand an millions of organization both locally and internationally whose major responsibilities are to provide SMEs,  and optimistic business ideas with startup funds without any payback, YES!!! no pay back, most people call grants free money and i’ll suggest you start making your business available for grants.

A lot of organisations and government in recent times have engaged in regular disbursement of funds to empower Small and medium scale enterprise in their country. First class nations of the world like United states, United kingdom usually allocate some certain funds toward the successful running of SMEs in their economy, notwithstanding lower class nations like Nigeria and Africa at large have also benefited from this scheme. Grants are free, and you do not need to pay back

Most grant offering organizations provide entrepreneur’s  with nothing less than $5,000 USD for their business and you are not required in most cases for illicit business documents, Just pitch something scalable that’s all, you get funding.

Learn about grant offering organization in Nigeria


10. Position Yourself for Miracles.

Dear readers, whether you agree or not, there is a supernatural dimension to this present world and its high time you learn to take advantage of that, we are created in three dimensions which are the soul (mind), Spirit and Body. The creator is spirit and he that must tap into the unlimited resources and abundance of the supernatural must learn to flow in the dimension of the spirit.

Most times we find ourselves in the pit of life without having anybody to help or assist us, and we often feel hope is lost, dear reader its not a time to weep or lament, its a time to turn to the creator.

There are whole lot that can be achieved via the supernatural but not every one is willing to take that lane. Beyond the physical world there is a supernatural dimension controlled by the creator himself, wonderful ideas and innovations from business, tech and all other aspects that makes humanity what it is today are generated from this realm.


In conclusion, Learn to access them, and how you do that simply by getting to know and understand the creator.








What do you think?

Written by Udemezue John

Web developer| Digital Marketer| Entrepreneur


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