Finance How can we solve the problem of lack of capital?

[kayode10]

Everybody loves to achieve financial freedom in their life. Setting up a business is one of the ways in which people can achieve financial freedom in the Life.

If you look at most of the rich people in the world, you will discover that large number of them are business owners. They create a company that sells product useful to a large number of people.

it is the dream of most people to start their own business either on part-time basis or full-time. You will discover that only few of these people actually start the business they are dreaming about.

Majority of those people who doesn't start their dream business often complain about lack of capital to kick-start their businesses.

So I want to ask you guys that how can a business man solve the problem of capital in their business and never complain about it anymore?

 

[btaliat]

It is not a gainsaying that lack of capital is the problem of the majority especially intending business owners. But this problem has solution to it. We only need to work and make sure we invest in some productive activites which is capable of solving the problem. Saving can as well help.

 

[Abigael]

Lack of capital is truly a big problem for somewhere with a great business idea. This problem can be solved through several ways. They include;
1. Look for a job and save your income for the business.
2. Take a loan and make a good plan on how to invest in the business and pay it back.
3. Do crowdfunding or ask from friends and family to help you raise the capital you need.

 

[Jasmine]

If you do not have money, that does not men it is an end to business. Not having capital will of course make it hard for you to build business but you can actually build business even when you d not have capital, for example, you can get a bank loan, you can burrow from friends and family, etc.

 

[Dora Wi]

I think a lot of people are held back by fear and lack of self-confidence, and kind of hide behind the excuse of not having enough money. I know that's often not the case though, and many genuinely don't have enough capital to start with. In my opinion, the first steps to starting a business should be market research and creating a business plan. If that's done, one could look into the possibility of scoring an angel investor or venture capitalist, or see if there are any grants available.

 

[moonchild]

To solve the problem of capital most entrepreneurs take up a job and save through their salaries, and then start up their business.

I think a really great business idea don't need a huge capital to start up and as many business consultants have advised is we should start small at first and keep everything lean, then you'll use the feedback you're getting from your customers to improve your product, this is also traction.

There are many businesses that started with not much capital but they turn up really profitable like Apple.com.

So, it all boils down to the idea, and the doggedness of the business owner.

 

[Mataracy]

This thing use to happen some times when a business owner is not all that business inclined . so any thing that happened negatively the person will be saying that its capital that caused his or her down fall.
And according to the topics written one should be able to get loan from the bank , cooperative or friend to finance the business.

 

[Sherman198]

The major problem combating most business people is lack of capital to propagates their business. Solving the problem of lack of capital seems tangible to solve, it's not easy to get hold of capital especially if you don't have any source to get it from. I would suggest lending from friends or contribution from families.

 

[sincerem]

Solving this, means having long time business plan to set aside money to start a business in the future especially for the average persons. Those who came from the rich class doesn't have anything to think or toil for capital because the money is there to operate the business on their dream. What matters for them is how to run the business with the right plan and become successful and not stopping at the middle of the road, which becomes a waste of money at the end for them. Lots of average persons have better business plans to execute but capital made them stumble. Discovering the best business plan on time and working towards it's financial start up requirements makes it easier to catch up.

 

[Mika]

There are various methods to solve this problem and the easiest method is getting a bank loan. However, in order to get a bank loan, you need fixed assets for collateral as well as your business needs to be a legal entity with a physical location (this also applies to online business).

 

[Mataracy]

How to solve the problem of capital can be done in series of ways .
To solve this problem one can borrow loan from bank but there are some factors that should be put in to consideration. Make sure that the interest of bank is not too high before one can obtain it.

One can also borrow from cooperative so that one can finance the business appropriately.

One can also finance the business by borrow money from friend to do business.

One can also borrow money from family to finance the business.
These are they ways raising funds to finance the business.

 

[sincerem]

There are various methods to solve this problem and the easiest method is getting a bank loan. However, in order to get a bank loan, you need fixed assets for collateral as well as your business needs to be a legal entity with a physical location (this also applies to online business).

If banks can offer anyone loan for business after rendering a legal documents it could've been better. But majority of banks in my country aren't even ready to offer loan to poor citizens in the country even though they have good collateral for that. They simply view the citizens as always 'short of meeting up with the repayment on time, making their collateral valueless and not gaining approval of a loan to start up the business of their choice. So, when you hear such kind of stuffs of disapproval from the banks here in my residential area, you wouldn't consider going to the bank for loan option.

 

[Yusra3]

Addressing the capital shortage might consider non-traditional channels of financing. Request for small business loans or lines of credit from banks, or even from other lenders available in case of shortage of money. Contact angel investors or venture capitalists for additional financing and offer an equity stake as a reward. Crowdfunding platforms allow you to pull engagers from different sources. However, start with bootstrap which covers revenue reinvestment, lower expenses, and the use of your personal savings at an initial stage. For instance, contact with NGO's could offer funding resources in the form of grants or partnership deals. Having a solid business plan displaying positive cumulative growth is a must for anyone venturing into capital market.