How to get funding for your start-up

Having a business idea is the easy part, starting a business that is where the trouble begins, most people struggle with selling their business ideas to others. Often aspiring entrepreneurs end up seeking funding from family and friends to get the business up and running. The problem with informal funding is it often ends up destroying relationships, even though getting funding can be difficult, you need to look at a couple of things to know if you are eligible for funding.

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Firstly, are funds for small business really there? the answer is yes and no. Not all small businesses will be liable to get funds or access to funds this will mean getting a business loan instead of a government grant or an investor.

Read: 5 Entrepreneurs Who Started With Nothing – and 3 Lessons to Learn

Secondly, What is the risks involved in investing in your business? if the risks are higher than what your business can actually compensate for in the long run, look into changing your business model and strategy to minimise risks and increase returns.

“Becoming an entrepreneur is not easy, unless if you are already a business man, you need to have an extra ordinary oomph pushing you, extra ordinary focus, have passion of what you do if you do not have passion then forget about it. I always advise business people to say take your business as a child, they are born, when they are sick we fight and take them to a doctor not let it die”, said Ms Elizabeth Thabethe, A special Envoy for investment in Tourism and previous Deputy Minister of Tourism and, Small Businesses Development and the DTI at the business Omni business conference.

She recommended SEFA, IDC, NEF organisation to approach for funding. Although they do assist small business it is not guaranteed that every small business will receive it.

“In terms of the economy in the country, small businesses were supposed to be vital, in access to 46% of jobs in South Africa is created by small businesses, this number is a significant how small businesses are important to us”, said Cecil Van Niekerk at the Omni Business conference.

Being Innovative can be an advantage for your business to succeed, focusing on one thing and investing your own money and time can also be an advantage.

Funds shouldn’t get in your way to have your own business, start saving up for it and be aware that there are risks that any businessman and women take, you will either lose or make it.