Easy Ways to Raise Capital to Start a Business

You probably have a brilliant business idea, but you don’t know where to get starting capital from. Do not be worried since there are many ways of raising money to start your dream business. Gone are the days when young people waited until they are old to start their businesses. Nowadays things have changed, and there are many ways of raising initial capital or expansion funds. All you need is to keep reading this article to find out unusual and easy ways to raise capital to start a business.

Friend and Family

If you are a young entrepreneur, it is advisable for you to seek help from friends and family members. Try to pitch your business idea to your parents, close friends, and other distant family members who are in a position to fund your business. Some can lend the without refunding agreement, and others can give you the funds for free. Therefore it is up to you to explain to them the validity of your business so that they are convinced they are helping you achieve your goals. Before going for loans from your local bank or any other financial institution, make sure you try talking to people who are close to you.


Crowdfunding is another excellent way of acquiring capital for your new business. Crowdfunding is becoming a popular and effective way to make cash. Provided you have a great idea, it will capture the attention of the public. The most popular crowdfunding sites for the beginner’s’ startups include the Kickstarter, CrowdCube, and Seedrs. The average fee that is charged by the top sites usually ranges from 5% to 7% of the total amount you raise. There is a high potential for you to increase the amount of money you require from these platforms.

Do it Yourself

Starting a small business may not require too much money. Therefore, you can make it your business by looking for other income-generating activities. You can have two jobs and make sure you set a savings goal. Also, most people are making a living out of online jobs. Many sites pay well, and this can be a better way for you to raise money to start your dream business.

Private Investors

There are hundreds of private investors in every corner of the world that are looking for young people who have brilliant business ideas. Some run shows to empower young people, and the ultimate winner takes home business support. Private investors can be contracted to invest in smaller businesses. They are often ready to spend their money into viable business ventures hoping to get a significant return from their investment. As a result, you must ensure that the business works out as planned to avoid disappointing the investors.

Angel Investors

This path has helped many businesses to succeed. Much of this path deals with right timing and leveraging the useful contacts. Family and friends are an excellent gateway for this funding path. You can develop trust to the investor by paying back the interest and the initial investment. This path does not, however, mean that you are partners in the long run.