Topic: How is the capital found? (Read 3688 times)

I think this is why when borrowing from friends it's better if you borrow from a lot of them so that you only take a small amount from each of them. If it's something that they can afford to lose anyway, maybe there wouldn't be much bad blood between the two. I'd prefer announcing to family and friends that I'm up to something, it might fail and that they can pitch in with whatever amount they want to to help out.

For banks I heard it's always better that you also have savings about the same amount as you are borrowing. At first I thought it was ridiculous but then again if the business bombed you can use the savings to pay the debt and you still have a good record with the bank and so would be able to ask for loan again in the future

The inability to pay for such loan from your friend will destroy your reputation. The banks don't care if you're able to pay or not because they can simply talk you out to let them sell your collateral. It's even better if you take a loan from the banks because they are going to analyze your business plan whilst borrowing from your friend will just require nothing but trust. Many business people ask from the bank for loans because it's way better. There would be no friend spreading rumours/BS about you, no friend asking about the loan constantly, and the banks pretty much don't bother you unless you don't pay them for a while.

Why do you want the money? I think this is important.I have many friends who want to withdraw from the bank loan and do business.But many failed.
If you really need money to do a job with your talent, I think you'll have to work a little bit to get started.This event is solved with some luck afterwards.do not forget this . Everything is not money.

If you don't have initial capital to start your business/investment, I think the best idea is to look for someone who can lend money to you. I say this because if you take money from bank, the fees and interest to pay will be more expensive, and you will take more time to achieve profit. Banks fees are terrible and worthless for borrowers. Take money from someone trustworthy and pay him later.

If you have a great idea, the money will come. You can go get a loan from the bank, though that would be a bit hard depending on how much you need. You can use your credit card too. Also, if you have things or service you can sell, then sell them to raise capital.

If trying to get money by yourself ain't working out well, you really might have to ask others. Give your best pitch and ask away. Go ask family and friends. Or you can try fundraisers, have it crowdfunded and/or ask for donations. Or you can offer people shares in the business you're starting and then just buy them out later.

Dam that is a great short guide for this question. Look at it, it covers all your answers. 
Well, genuinely business needs capital according to what kind of model you want set up. But even though you think of smallest business it will need some amount of capital that can be taken from friends and family or may be bank loans. I would go with bank loans so that I won't trouble my family and also I will have long term period to pay back the amount.

Well this is typical way of starting up the business. I don't think there us anything difficult in that as long as you are sure about your business and seriousness particularly.

When we talk about capital we are talking about money, resources, manpower and time. If we have money it is easy to do business since everything in business rotates around money. If you don’t have money but you have resources such as a piece of land you can just make a loan from the bank or sell some of your resources so you may have the money you need to start a project or business. If you don’t have money and resources but if you have skills then you can work and earn some money until such time that you can save enough amount to start a business.

where its economy forward in a big city it was where the capital funds transfer will occur the capital, seeking new capital should be the city that is not a need for state funds and it gives a good thing for the country.

The key is matching the amount of capital and how you raise it to the nature of the business, strategy, potential, and business objectives.

1.  Capital intensive or not

Some businesses need almost no capital. For example, management consulting, graphic arts, bookkeeping, just to name a few. Others need enormous capital: steel manufacture, autos, and many others.

2. Business potential and aspirations

Furthermore, the level of capital for each business is a matter of a mix of potential, objective, ambitions, the nature of the business coupled with the size of the market and potential for growth and potential for investment. there's different potential, and strategies, between different businesses. Some are critical mass businesses that can be huge but have to grow big or won't succeed at all. Some are easier to grow organically. For some, the opportunity is so big that it's a good one to share with investors, keeping less ownership, because the investment can pay back well. For others, it's a great potential business for owner operators, but not for investors.

3. Who and where

And beyond that, what's realistically available depends not just on the nature of the business, its aspirations, but also on who the founders are and where the business is located.

Funding is easier to get in some markets than in others, and different in some markets. Angel investment, for example, is easier in developed countries than in developing countries. Foundation money and NGO money is more important in Africa and Latin America than in the U.S. Funding strategy needs to recognize those differences. The founder in Africa has a lot tougher go than the founder in the U.S., U.K, etc.

Outside investment is much easier to get when founders have already done startups than when it's their first time through. Credible founders have a much easier path to outside investment.

Friends and family investment is much more available to those who have friends and family with means than those who don't.

Bank loans are available to people who have assets to pledge, and not to people who don't.

Therefore:

As I said in my first sentence, the best way to find financial capital when starting a business is the way that matches the business, its potential, and its founders.

There are many ways to find the capital needed. If you have the right mindset and business plan no one can prevent you from success. If you have any skill you can get paid for it easily, physical work can also bring you money,and if you can find an investor for your business, that will also work.Your main target should be making it more. Many entrepreneurs worth million has started from nothing. Good luck

That's just going to work out (most of the time) if you have some really bad-ass idea. But if you're going to set up a coffee shop or something that's really common, people aren't going to invest in your project. You will have better chances of getting a capital from bank loans whereas you have to show them business plan. This way, not only you'll get a capital, you will also get some "consultation" or some opinion about your business if it's going to work out or not. Those people that are in the banks aren't new to that thing so they know what's a good business and what is not. So, if you didn't get accepted, your business will probably not work out anyway.

Common methods : business loan, hard loan, sponsors, venture capitalists, creative financing, crowdfundung sites like patreon/kickstarter, gofundme, donations, et al.

The internet has a wealth of information that can be accessed through search engines, forums, mailing lists & other avenues.

What are you talking about? You are talking about accounting jugglery to create capital out of thin air?
That does not work, especially in developed countries.

If you believe that you have a good idea or something different, you can post your project on some sites where you might attract some investors to your idea, this is the best way to launch a startup and grow it.

Capital cannot be found it has to be created and this you can do by doing small investment and save little by little and then you will see that you have saved a lot and that is call capital created and then you can use it according to your plan.

The first investment you should make is an investment into your own education.  Once you acquire an education, a skill and a unique perspective, build social equity! Take advantage of the social network resources available to you and accumulate credibility to elevate your reputation. If you have a novel idea that's well developed, opportunity will present itself.

Their are ways to create a capital like if you want capital in Income Tax file then you can contact your chartered accountant to create a IT file with old database and create a capital through which you can enjoy it while doing business apart from that what ever you earn just start to save little bit and in some time you will see that you have created a good capital for your future

After reading a lot of responses, some are definitely funny like marrying from a rich family like rich people will always advertise they are looking for suitors, going the way of banks might even kill the business before it starts, the only sure way I can think of is partnership where people with the skills can liase with those with funds to make the dream come true at an agreed profit sharing ratio and if its loss then no issue.

The easiest way to raise capital for a new project is through social capital, where someone close to you invests in it. The investor does this because they trust you, believe that you have both the competence and character to drive the project into success. So before you approach anyone for this kind of capital, make sure you have worked on yourself in the areas of trust, character and competence.

Even if you find lenders to give you money (well planned loans), they would expect you to be sufficiently invested in the business (bring in substantial equity as well). Typically, lenders enter when the risks are lower (not at the start up stage).