So you have this great idea, you are thinking of the many ways this idea could become a reality, and you get even more excited when you visualise the potential return and the help you will be to many. And then reality hits; your idea will require some capital investment to get it off the ground.

Here is where many entrepreneurs and budding entrepreneurs get stuck—financing their dreams. Do not get all disheartened; instead, get creative and begin to write down the different options that are available to you. Some will require a bit of risk; others, focus and committed work to put together a business plan but take heart—where there is a will, there is always a way.

LET US TALK ABOUT 5 WAYS OR OPTIONS THAT MAY BE AVAILABLE TO YOU.

Upfront the cost using personal funds

I recall the moment I decided to pursue a long-held dream of owning my own magazine. This dream I held close for perhaps 20 years; imagine that. As I began to see the possibilities, the excitement became uncontainable, and there was a burn within my belly that signaled that the time for this dream to become a reality was at hand. What I could not see was the capital I would need to begin. A magazine business is run on subscriptions and advertisements predominantly, and being new to the magazine landscape, I knew the likelihood of obtaining100% funding for the cost of creating, publishing, and printing might prove to be a stretch, and boy was I right. Not to be deterred, I decided along with my husband that we would support our dream with personal funds and that we did.

You may need to make a similar decision as ours as future investors want to see a product or service already in operation. They want something tangible, a drawback new entrepreneurs will have to face.

Consider funding the business in the initial stages, maybe not 100%; we were fortunate to have a few investors on board. If you have a day job, don’t quit yet; consider using the day job to fund your dream until you get over the initial humps.

Small Business Loans

As governments and lending agencies recognise the importance of small businesses to the economy, new incentives are in place to support business processes. While accessing these loans is not automatic, neither are they easy to obtain, if you have good credit and a solid business plan you may be eligible for a small business loan. These loans can take various forms with different stipulations, such as a line of credit, a term loan, bank overdraft, etc. Start-ups must have a good relationship with their bankers. It is also imperative to have a good business structure that enables the bank to establish business credibility and the ability to repay.

Borrow from family and friends

A great way to raise capital to get your business off the ground is to share with family and/or friends and get their buy-in. You may also want to have a legal document outlining the terms and conditions of their input. You can sweeten the deal if it is not too much by offering them a piece of the company via stocks and shares.

Pitch Your Big Idea

You may never get on a show like Shark Tank, but I remember once my son entered a ‘pitch your idea for funding’ competition while in university. This contest offered a pretty decent payout to the winner. Depending on your business location, you may be able to find various angel investors who hold these competitions throughout the year and pitch your idea to them. If you are a female entrepreneur, there are different forums to engage in that may offer you bonuses such as mentorship support to go along with your winnings. Jump onto Google and do your research; you may be surprised by the opportunities you will find.

Small Business Grants

You may be able to access grants based on the type of business you are engaged in—agriculture and technology are two that quickly come to mind. Many government and non-government entities offer grants and incentives, and you may qualify. Do the research and if you do qualify, apply.

Entrepreneurship is a journey. It is a journey that requires you to put yourself in rooms you wouldn’t normally enter, and you will have to interact with other individuals through networking opportunities that can help you grow your business. You will grow throughout the process, and you must prepare for opportunities that you will encounter. Ensure that you are compliant with your country’s requirements to operate a business. Throughout the pandemic monetary grants and support were available to keep businesses afloat. Unfortunately, many small businesses were non-compliant and unable to participate in this free money. Get compliant and never be left out.

To get the good from life, we must start by doing the work required; we do not live in a world that affords free handouts. When the idea comes, we must move from ideation to planning. Create the vision, buy into the vision first—after all, it is yours, then decide which of the options presents the best possibility for you and go for it.