Are you looking to kick-start your business in Kenya but don’t have enough capital? Or, are you searching for ways to raise business capital for your start-up in Kenya? You are in the right place. We are going to show you 8 easy ways to raise capital and start your entrepreneurship journey.
Funding a small business in Kenya can be quite challenging, especially if you don’t have any reliable source of income. However, if you plan outside the box, you will find a way to raise capital for your small business. Below are eight tips to help you take your entrepreneurship to a whole new level.
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Easy ways to fund a start-up
Find and Join a Chama.
Joining a Chama is one of the best ways of raising capital for your business. A Chama is a group of friends who come together to contribute and save money. To help you get started, you can find your friends or a group of like-minded people and form a Chama. Alternatively, you can find an existing reputable Chama and join.
Chamas started as women’s gatherings, but over time, they have grown into investment ventures. Some even have a vast investment portfolio worth millions of money. Joining a Chama will not only help you raise capital but also help you gain financial knowledge, save money, support, and motivation. Additionally, a Chama can qualify you for government fund loans like the youth fund, uwezo fund, and women enterprise fund.
2. Use your savings.
Your savings can also help you raise capital for your startup. If you have accumulated the money you have been saving, you can use them to kick-start your business. However, if you plan on starting your business in the future, you can start saving today. Saving can be quite challenging; however, you can make it by focusing on your goal. There are many ways to save money. You can save as little as Ksh 50 every day or any amount you can afford to keep.
Open a lock savings account where you can only save the money for a particular time. If you plan on starting your business in the next six months, you can lock your savings for that period. There are many platforms for securing your savings. You can open lock savings account with your m-shwari account or any bank account of your choice. Alternatively, you can save in your Chama.
3. Sell some of your assets online.
Selling items you no longer need in your house is also another excellent way to raise money for your small business. You can sell electronics, furniture, or any other asset you have. The best thing is that you can sell your items online and fetch the right amount of money. Just be sure that your items are in good condition and can be sold as second-hand items. There are the best platforms to sell your items online, but none beats the corido marketplace.
Here at the corido marketplace, we offer you the best platform to safely sell your items online. All you need is to register your account and list your items. Corido will do the hard work of finding buyers for your items. Some of the things you can sell here at corido are; household items, electronics, furniture, machinery, power tools, agriculture and food items, and many more. You can also sell your business if you are planning to venture into something else.
Alternatively, you can find the items you need for your business at an affordable price at corido. Sign up for an account.
4. Take a loan from family members/friends.
If you have family members or friends who have money, you can ask them to help you kick-start your start-up. Asking for funds from close relatives/friends is easy and convenient. Tell them about your business and how you are going to repay them. It is best to write down terms and conditions even if they are your relatives-especially if vast amounts of money are involved. This will help cushion you against any legal issues in the future. What makes relatives/close friends the best people to source for funds is that they already support you and want the best for you. They will support your idea to make sure that you become independent.
5. Find a business partner to help you raise capital for your business.
You have that great business idea with no capital to start. Someone else has the money but no idea what to do. Ask them to be your partner(s) and help you fund your startup. In this scenario, your business partners have a say in the business. They are part of any decision made in the company.
Again, don’t work on word of mouth only. Write down your terms and conditions to protect both of you in the business. You may want to include a witness in the signing of the contracts. It is imperative to put the legal issue that may arise in the future into consideration.
6. Work as a corido agent.
Finding a side hustle is also another best way to raise capital for your small business. You can find a part-time or full-time job and work for a specified period enough for you to raise the capital. We have good news; you can work as a corido agent and earn money. A corido marketplace agent helps sellers manage their accounts. Technically, as a trained corido agent, you will help sellers find customers at a fee. Your account management services will come in handy to those sellers who don’t have the time to sell the items on their own. We train and support our agents to help them make more money as agents of the corido marketplace. You can register as an agent in simple, easy steps.
7. Look for an angel investor to help you raise business capital.
An angel investor is someone who has a lot of money sitting in banks. You can approach them with your viable business idea and ask them to fund your startup. Most times, the investor will expect huge profits because of the business risk they are putting their money into.
These types of investors can be any wealthy person you know or one’s people recommend. Be sure to ask around for angel investors to fund your business. The good thing about these investors is that unlike business partners, they can offer mentorship and support. Especially if they are successful entrepreneurs looking to fund start-ups. Coaching can help your business grow and avoid risks along the way.
8. Use crowdfunding.
Have you tried the above tips, and still, your capital isn’t enough? Try crowdfunding. It may not yet be prevalent in Kenya, but crowdfunding is also another excellent way to raise funds for your small business. Crowdfunding is borrowing money from a group of people. What you do is that you present your business idea to a crowd of people who will be willing to invest. Your plan should be convincing enough to win investors. Some of the best crowdfunding sites in Kenya include M-changa and Go get funding Kenya.
8 Easy ways to raise capital for your small business.
The bottom line is there is always a way to fund your small business. If you have that burning business idea, get up, and find the capital you need to start. Think outside the box and kick-start your entrepreneurship journey like a pro.