Funding your business
Fortunately there are quite a few ways to find money to start your business.
- Maybe there are people who will benefit from your business. Such people are called investors. An investor is someone who invests money into your business (thus gives money for your business). This means that they are owners of the business, together with you. You’ll have to explain to them how the business works by showing them your business plan (more about this later!) and you must also show them how much profit the business makes. The investors then get a share of the profits. Precisely how much of the profit they get will depend on how much money they gave you. For example, if they gave you a third of the money which you needed, then they will get a third of the profit.
- You could get people to sponsor your business. People usually sponsor businesses because it’s a form of advertising for them. For example, if you have a stall and the café across the road sponsors you, you’ll put up a poster with their name on it at your stall so that people can see it. Your sponsors will hope that your business does well, so that many people will see their name. Or, if you stage a play, you can tell people about the café before the performance, explain what products they have, and urge them to support it. Usually you will also have to show possible sponsors your business plan and they’ll also want to know how many clients your business has. For example, if you’re planning to stage a play, you can tell them that 200 people will be attending.
- You could also save your own money. Think about simple, quick ways to make money, for example doing chores around the house for extra money.