How to raise startup capital for your business in Uganda.
How does one raise startup capital for his business in Uganda? Capital is the blood in a body called a business startup.
Many entrepreneurs struggle when it comes to raising startup capital
Many great businesses have not seen the light of day due to a lack of funding.
Entrepreneurs have given up on their dreams to change the world due to a lack of funding for their precious ideas.
Today we looking at easy ways to make your build your business by raising startup capital for that business. I have broken down the steps one by one for you.
Look for what works best for you and use it. If one way fails try the other.
1. Use your own money
Funding your startup also known as bootstrap is one of the most common ways entrepreneurs raise startup capital.
You too can raise startup capital from your savings. To do this well, you need to start putting a percentage of your salary away as startup capital.
There are many ways you can take off a percentage of your salaries like 10% or 15%. The best way to do this efficiently is to automate your savings.
Let the bank where your salary is deposited deduct a percentage automatically from your Salary and add it to your business startup capital.
You can talk to your boss to deduct a percentage and have it sent to your business startup capital savings.
Automation makes saving money easy, and you won’t face errors like forgetting to take away a percentage from your Salary for your business startup capital.
2. Raise startup capital from family and friends
The other method of raising startup capital is contacting your family and friends for a hand.
If you are thinking about ways to raise capital for your business, you can look at your family members.
Family members are more than willing to help a family member succeed in business.
All you need to do is explain to your family members your business plan, when you expect money to be returned and what you need the money for and request their funding.
You can agree if the money will be refunded back or if they have given it to you.
This is the second most common and easy way to get capital to start a business in Uganda since family and friends don’t request much in return for their money invested in you.
3. Get a bank loan
Banks readily issue loans to all startup entrepreneurs looking for startup capital.
All you need is to have a well-written business idea or plan. The bank looks at your business plan and if it feels satisfied with what you propose, it will give you a loan.
The bank will however require you to have credit. Credit is your history of borrowing and paying back loans.
The better the credit, the better loan deals you will get. The bank looks at how you plan to pay back their money as well.
4. Get a micro-finance loan
If you have failed to secure a bank loan, there is still a chance with micro-finance institutions.
These financial bodies are there to fund small businesses. Their loans have very little interest as compared to loans from banks.
You need your business plan to secure a loan from a micro-finance bank.
5. Get funding from venture capitalists
Venture capitalists are normally business owners, investors and professionals who invest their money in a startup that has potential.
Venture capitalists normally have a panel of members that interviews entrepreneurs and their startup ideas.
Once they see potential in your business plan, they give you the capital needed to start up your business.
You need to be having a good business idea to get this funding from venture capitalists because many entrepreneurs go for venture capitalists’ funding.
Are You Looking for Venture Capitalists? We have a full list of currently Active Venture Capitalists in Uganda.
Your Turn…
There are many ways to raise startup capital for your business in Uganda.
Try out all of the above methods about how to get capital to start a business in Uganda and if one method does not work out, try out others until you find what works for you.
Do not give up on your dream business because of a lack of startup capital.
If you have any other method of how one can fund startup capital add it in the comments below and I will surely add it to the list.