Arranging for financing for a new business is no easy task. New businesses do not have sales or track record. Hence they are considered much higher risk than financing an established business. New business entrepreneurs also find it difficult to estimate the amount of money they will need to get a business up and running. More often than not entrepreneurs significantly underestimate the amount of funds they require. They leave no room for unexpected obstacles or opportunities.

Sources of business Finance

The primary sources of funds for small business start-ups are personal funds, friends and relatives, NGOs or private investors, banks, government agencies and programs, and venture capital.

Personal funds

The most accessible and unconditional source of funds for your new venture is often in your own pocket. It is also the first source you should tap because most people will not invest in your business unless you can demonstrate some financial commitment your self. After all, why should someone else invest in your business if you are not prepared to put your own finances on the line? This may mean looking in your savings accounts or other investments, tapping into a life insurance policy, selling some real estate or postponing some other expenditure.

Friends/Relatives

Once you have assessed your own savings and found that there is still a shortfall, it may be time to look to raising money from friends and relatives. This often known as β€œlove money” and is used by many entrepreneurs for at least part of their start-up financing. The biggest risk with this source of capital is that it can create a considerable strain on these relationships if your business does not work out.

It is therefore important that you treat their investment the same as you would a bank or other external source of capital. Develop a formal agreement, lay out the terms and conditions including a repayment schedule plan, and keep them abreast of developments in your business. Depending on the nature of the business this type of financing may be sufficient to supplement your own funds.

Non-Governmental Organizations (NGOs)

There are several NGOs nowadays that are providing credit to small businesses. However, each NGO has its own conditions and requirements that must be fulfilled before providing loans.

Banks

Banks are one of the most widely used external sources for funding new businesses. The primary consideration for banks in assessing a loan applicant is their confidence in the person’s ability to pay back the loan.

This confidence is a function of a number of factors:

β—˜ The person’s previous track record and credit history,
β—˜ Adequate cash flow in the business to meet the payment schedule,
β—˜ Sufficient equity or assets.

Banks do not take large risks. They have a responsibility to ensure the safety of their depositors’ money and obtain a reasonable return. Unfortunately many entrepreneurs do not understand this. Hence it is common for an unprepared entrepreneur to walk into a bank, ask for a loan, and if they are refused, blame the bank for not caring for the β€œlittle guy” (Mlalahoi). Informed entrepreneurs go into the bank with all the information the banker may need at their fingertips including their financial history, current financial circumstances, business plan and rΓ©sumΓ©s.

Types of financing that can be obtained from a bank are:

β—˜ Short term loan

– Usually repaid within 30 to 180 days and they are normally used to purchase extraordinary inventory, finance cash flow shortages, and access to suppliers’ discounts for early payment.

β—˜ Operating loans

– these are usually loans given for 90 days, based on a line of credit allowing entrepreneur to access money up to a pre-established limit (50% of raw materials or finished products) and must be repaid with interest. They are unsecured loans but less risky and they are given depending on the entrepreneur’s financial statements and track record.

β—˜ Fixed assets loans

– These are usually long term loans provided for a year or more to cover the costs of fixed assets such as machinery/equipment, vehicles, commercial buildings, and real estate. These loans normally cover about 60 to 80 percent of the cost of equipment and about 75% of the market value of property.

Governments

Governments at all levels have developed a number of financial assistance programmes for small business.

Venture capital

Venture capitalists provide equity investments for start-up or expanding businesses.

Other sources of financing

Internal financing

 Shareholders loan
 Employees share payment
 Supplier’s discounts/financing
 Real estate/remortgaging
 Retained earnings
 Leasing vs. buying
 Advance payments from customers

Forms of Financing

Capital is normally invested in a business in two ways or forms: Debt financing form or Equity financing form.

Equity financing

This is an investment in the business either as the owner, a partner or a buyer of shares in the corporation.

Key considerations in equity financing include:

- Requiring more commitment from investors.
- Less stress on the cash flow.
- Long term (fixed assets)

Types of equity financing are:

- Cash on capital contributions
- Personal equity
- Partnership equity or capital injection
- Love money (This is a common phenomenon in US and Canada)
- Investor (preferred or common shares)

.

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πŸ“Œ The story of crime girl πŸ‘§

A lady committed a crime and she was sent to court. The punishment for the crime was life imprisonment. She shed tears for help but to no avail.

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πŸ“Œ Where do entrepreneurs come from and how do they develop?

If you choose an entrepreneurial career much will depend on your ability to learn quickly from experience, cope with uncertainty, respond to changing circumstances, and deal with unexpected critical incidents. You will find these things less difficult if you develop your general enterprising tendencies.

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πŸ“Œ See how this man reacts!

A man went for HIV test on Saturday and they told him tocome back on Monday to pic his results.On sunday he went to church and the pastor was praying and said "… may the things that you'll receive as from tomorrow be positive …"The man quickly opened his eyes and shouted "Acha ujinga weweeee!!"

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πŸ“Œ Life facts which I have discovered

When I woke up I was pondering about life, I discovered that:

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πŸ“Œ Understand Advent

1. What Is the Purpose of Advent?

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πŸ“Œ A letter from an aborted child

A LETTER FROM AN ABORTED CHILD
Dear Mum,
I have decided to talk to you to let you know my
feelings. I want to know why you did it. My story
is short. I stayed inside you for only a couple of
weeks. I was very comfortable and warm. I felt
really protected. I knew you were a special
person because you never stopped me from
eating the food you ate. I longed for the day I
would see your face. Nine months was a long
time to wait, but I was determined to wait. I had
to be patient.
A man then offered you some amount of money to
get rid of me. I was happy and prayed that this
meant that I would at least see you, the only
person that I knew in the world. I was wrong. I had
almost forgotten the issues until I felt something
sharp pierce my tiny ear. I jerked silently and in
pain, and asked you to protect me. Seconds later
the object came,fiercer than before. My tiny body
was cut up, starting from the ears then arms and
legs. It was an agonizing experience. My head was
then cut off and I died.
It took me a whole hour to die. A whole hour for
an innocent few weeks human being to be
murdered by you! I remember the whole incident
vividly and I keep asking myself what I did to
deserve that cruel death. Why me? Why did you
do that to me? And why was I not given a
chance to live just like they children you hear
playing around? How do you feel when you send
some of them on errands when I could have done
that with pride if you had given me the chance to
live? Don't you see the beauty in playing with a
child that calls you mom with a sweet soft voice?
I know you are having a lot of nightmares. You
remain guilty for the beastly act. Please explain
to God why you committed the heinous act. He
sent me to you as a very special gift. My purpose
was to make you proud by being the great
person God meant me to be. I have forgiven you
though I never lived to see your face. My journey
back to my creator was safe, and I arrived
safely. I was given a red-carpet welcome by an
angel. I am in fact without bitterness. I still love
you, mum.
Yours Never-seen child.
If you are touched, join the "STOP ABORTION"
campaign by sharing this post with your friends.
…. STOP ABORTION !!!.

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πŸ“Œ Be careful

You have been single throughout the year, and two weeks to Christmas you fall in love

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πŸ“Œ How to overcome fear

Understand Your Fear Try to understand why you fear or what causes you to fear. Only when you have identified the source of your fear can you start on the process of overcoming it. You can start by listing all your fears on your notepad and then striking them off once you have overcome them. Breathe Deep Taking deep breaths when you are scared or worried helps you relax to a great extent. Make sure that you exhale longer than you inhale. Fear will automatically reduce since you will also calm down. This can also help you to think things out effectively. Breathing exercises can be practiced during meditation. Chalk Out A Plan & Be Positive Always have a plan for situations which may not bring you certain results. For instance, you may be afraid to attend an interview in fear of being rejected. You may also fear a date for similar reasons or may feel scared about losing your job as you do not know how life will be after that. But in all these situations, you can chalk out a plan beforehand, a plan which will bring you favorable results and thus kill all fears. Though plans do not work always, a positive attitude always does, therefore think positive in every walk of life. Confront Your Fears Many people are scared of something specific, like being in the dark or driving or swimming. If you too fall in the same category, make it a point to learn the thing that you fear doing. Even if you fail once or twice, don't give up on your hope and practice hard to overcome your fear. Switch off the lights when you are alone in a room and see what happens. You can be assured that nothing is going to attack you! Once when you have confronted your fear by actually performing the same thing that you fear, you will successfully kill your fear. Boost Up Confidence Sometimes, fear is the result of extreme low belief in oneself and low confidence. Practice exercises which help to boost self confidence. For example, you can stand in front of the mirror and pretend to speak to a stranger, so that you do not have to fear mingling with a new group of people the next time you come across one. This exercise can also help you overcome stage fright. Seek Medical Help If nothing seems to be working for you and you still feel intermittently scared, there is no harm in seeking medical help, for who knows, after a couple of sessions, you might actually be able to ward off your fear. Nowadays, there are psychiatrists who help people to overcome their fear and shortcomings. However, resort to this, only when all the above have failed.

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πŸ“Œ What is a Business Plan?

A business plan is a blueprint of your business. It is a detailed plan from which all other plans should be developed.

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πŸ“Œ Things are always not they seem

🌽🌽THINGS ARE NOT ALWAYS WHAT THEY SEEM
A guy met one of his school mates several years after school and he could not believe his eyes; his friend was driving one of the latest sleek Mercedes Benz cars. He went home feeling awful and very disappointed in himself. He thought he was a failure.
🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽
What he didn't know was that his friend was a driver and had been sent on an errand with his boss's car!
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Rosemary nagged her husband always for not being romantic. She accused him of not getting down to open the car door for her as her friend Jane's husband did when he dropped her off at work.
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What Rosemary didn't know was that Jane's husband's car had a faulty door that could only be opened from the outside!
🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽
Sampson's wife went to visit one of her long time friends and was very troubled for seeing the 3 lovely children of her friend playing around. Her problem was that she had only one child and have been struggling to conceive for the past five years.
🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽
What she didn't know was that one of those children who was the biological child of her friend had sickle cell and had just a year to live; the other two are adopted!
🌽Life does not have a universal measuring tool; so create yours and use it.
🌽Looking at people and comparing yourself with them will not make you better but bitter.
🌽If you knew the sort of load the camel carries, you wouldn't ask why it takes those gentle strides.
🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽🌽
So be thankful to God for what you have and enjoy it. You never know, someone may earnestly be praying for what you don't appreciate but take for granted.
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GOD BLESS US WITH MUCH MORE AS WE APPRECIATE WHAT WE ALREADY HAVEπŸ™

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πŸ“Œ How to achieve goals

Set Goals First list down all the goals that you want to accomplish. If you are not sure what you want in life, you are just bound to receive the unexpected. Nevertheless, bear in mind that goals should always be sensible and should be accomplishable. Setting unrealistic goals are of no use. Write the most important goals at the top of the list and number them accordingly. This will help you to focus more precisely. You can strike off each goal once it is accomplished. Writing down your goals will also help you to realize your priorities. Develop Strategies To Achieve Goals Once you have listed your goals, you need to evaluate and develop strategies to complete your goals. For example, if your goal is to shed some extra pounds, your broad strategy should be dieting and exercises. Nothing can be achieved straightforwardly in life. So, you need a particular strategy and dedication to pull off your goals. Have Definite Action Plans Once your broad line of attack is determined, work on your definite action plans. For instance, if dieting and exercising are your broad strategies to your weight loss goal, then your action plan should consist of a healthy diet chart; a healthy way of life, and an appropriate workout routine. Believe In Yourself If you want to accomplish your goals and become successful in life, you have to believe in yourself. All successful men and women today are doing well because they believed in themselves and were confident about their capabilities. If you believe in yourself, then you can accomplish the goals you have set for yourself. Review Your Progress Make sure you are making progress. Review your progress every week to analyze how far you have reached in accomplishing your goals. If you find you are lagging behind, hire a coach, look for help from family and friends, and above all, try to recognize why your goal is not being met. Find a solution to accomplish your goal. Be Self Motivated Self motivation is a must to achieve goals and success in life. Motivational books and CDs are great ways to keep you motivated and will help you to stay focused towards your goals. The more self motivated you are, the easier it is to work towards your objectives.

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πŸ“Œ Where to look for business opportunities

(1) They can develop/evolve as a result of your personal background including your previous jobs, hobbies and personal experiences, or
(2) From opportunities in the external environment or general market place

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πŸ“Œ Just think about this

*No matter how many times the teeth bite the tongue, they still stay together in one mouth. That's the spirit of FORGIVENESS. Even though the eyes don't see each other, they see things together, blink simultaneously and cry together. That's UNITY." May the Lord grant us all the spirit of forgiveness and togetherness*.

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.

πŸ“° Recent PostsπŸ‘‡

A Heart touching story

<HEART TOUCHING STORY>
.
A boy and a girl Loved each other very much.
Unfortunately the Girl Died..
The Boy was So Upset and he couldn’t Stop his
Tears.
.
He kept on Crying Day and Night.. Many People
gave him Sympathy,
but no Argument could Stop His Tears.
.
One Night He Slept and had a Dream;
.
He saw the Girl in Heaven with so many Girls of
Her age.
He felt Relaxed.. But He Noticed that every Girl
was in Fairy Dress;
and had a Lightened Candle in their Hands, but
his GF had a Candle which was not.Lightened..!
.
He asked Her:
β€œWhy is Your Candle not Lightened?” She Replied:
β€œWhenever I lighten My Candle;
Your Tears fall on it..!
Please Stop Crying…
.
PRAYER !! !! !!
.
TODAY I PROPHECIES THAT YOU WILL NEVER
LOOSE ANYONE YOU LOVE ON EARTH
PREMATURELY.
.

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A What is a Business Plan?

A business plan is a blueprint of your business. It is a detailed plan from which all other plans should be developed.

πŸ‘continue to read about πŸ‘‰What is a Business Plan?βœ”

A To learn how to love yourself

Accept Your Personality Your life has not ended yet. You still have plenty of years to live. Hence, it's never too late to improve or develop yourself throughout your life. However, it is best if you accept yourself for whom you are. Be happy and celebrate your unique qualities and characteristics. After all, you are a unique individual created from God's own hands. Be Happy With Your Body Size Both men and women are often too conscious about their physical appearance, especially when they see a well-toned and figured person crossing their way. In case of women, some feel that their breasts are just too small, while there are others who feel they have heavy butt. Men, on the other hand, feel inferior to those who are well built or have a great muscular body. For all such gentlemen and ladies, remember that we are not produced from a single factory. Each one of us is different; hence, it is better if you accept, or rather love, your physical appearance. Built Confidence No person is born with natural confidence. It is the upbringing and your surroundings that help you develop poise and self-confidence. Children who are taught to become self independent from an early age have greater level of confidence than those who look up to their parents for every knick and knack. Start revealing a positive attitude and a feeling of self assurance and see how confidence comes natural to you in no time. Find Out Your Good Qualities And Achievements Looking out for some good qualities in yourself? Were you not able to find any? Does that make you hate yourself further? Why? Aren't you a homosapien? Just like every person has some negative attributes, so does he have positive characteristics as well. It is good to criticize your self but then do not be over critical. Accept your flaws and try to come over them. As for your positives, just keep on bettering them and who knows you might be able to love yourself all the more. Stop Regretting On Your Mistakes So, you have committed a mistake? So what? It's just a mistake. No one is going to beat or punish you to death. Making mistakes is natural to any human being. So stop beating or cursing yourself over and over again. Instead, sit down and analyze your mistakes. Take positive lessons from them and find out what different you can do next time to avoid these stupid and silly errors. Forget the past and plan the future. Don't Let Others Dominate You Sad but true, often people treat you like a doormat simply because you allow them to do so. It's your life and no one has the right to control or rule it, except you. So stop being too kind and generous when a friend constantly borrows money from you with no promises of repaying it back. Stand up and dump that guy who calls and looks up to you only for sex and nothing else. Remember, do not let anyone treat you badly because you deserve better than being only used or criticized.

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A The powerful prayer

A Priest has just requested that this be shared, kindly reflect on it. Thanks

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A Tragic cat's moment

====TRAGIC_CAT'S_MOMENT.====
The cat was so faithful that the woman could leave her baby with it & go out to attend other matters.
She always returned to find the child soundly asleep with the cat faithfully watching over him.

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A Where you wait for the bus 🚌 doesn't matter but your relationship with driver does

There's an old story of the boy who stood on a sidewalk, waiting for a bus. A man walking by spotted the boy and gave him some gentle instruction. "Son," he said, "if you're waiting for the bus you need to move to the street corner. That's where the bus stops for passengers."

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A Try this if you think you speak English fluently

try dis!
''THREE WITCHES WISH THREE WISHES,BUT WHICH WITCH KNOWS WHICH WISH WHICH WITCH WISHED."
Send it back as a voicenote, let's hear accents,
Don't spoil d fun….
Waiting 4 ur voicenote πŸ˜€πŸ˜€πŸ˜€

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A Normal body conditions

*MEDICAL FITNESS*
*PREVENTION IS* *BETTER THAN CURE*

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A Best Inspiring quotes for today

πŸ’šI love this, πŸ’šβž–βž–βž–βž–βž–βž–
Life is not about finding the right person, but creating the right relationship. It's not how we care in the beginning, but how much we care till the very end.
πŸ’šβž–βž–βž–βž–βž–βž–
Some people always throw stones in your path. It depends on what you make with them; a Wall or a Bridge? - Remember you are the architect of your life.
πŸ’šβž–βž–βž–βž–βž–βž–
Search for a good heart, but don't search for a beautiful face, coz beautiful things are not always good, but good things are always beautiful.
πŸ’šβž–βž–βž–βž–βž–βž–
It’s not important to hold all the good cards in life, but it’s important how well you play with the cards you hold.
πŸ’šβž–βž–βž–βž–βž–βž–
Often when we lose all hope & think this is the end, remember God and pray, it’s just a bend, not the end.' -
πŸ’šβž–βž–βž–βž–βž–βž–
Have faith and have a successful life. One of the basic differences between God and humans is, God gives, gives and forgives. But the human gets, gets, gets and forgets. Be thankful in life…
πŸ’šβž–βž–βž–βž–βž–βž–
If u think it is your alarm clock that woke you up this morning, try putting it beside a dead body and you will realize that it is the Grace of God that woke you up.
πŸ’šβž–βž–βž–βž–βž–βž–

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A BUSINESS MANAGEMENT PLAN

Managing a business requires more than just the desire to be your own boss. It demands dedication, persistence, the ability to make decisions and the ability to manage both employees and finances. Your management plan, along with your marketing and financial management plans, sets the foundation for and facilitates the success of your business.

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A Understanding Entrepreneurs and Entrepreneurship

There is no clear consensus among entrepreneurship specialists on the definition of the word β€˜entrepreneur’ or that of its derivative, 'entrepreneurship'. While some people would treat small business owner managers and entrepreneurs as synonymous, the bulk of the entrepreneurship specialists attempt to draw a distinction between them. This distinction is central to an understanding of the meaning of 'entrepreneur'. We proceed to look at the definitions of these terms with a view to delineating the differences among them.

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A MARKETING STRATEGIES FOR YOUR BUSINESS

Marketing is a complex subject but one of the most important contributing factors to the success of your business. Without customers there are no sales and therefore no profits.

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A An infant rejoice in the presence of the Lord

β€œMost blessed are you among women, and blessed is the fruit of your womb. And how does this happen to me, that the mother of my Lord should come to me? For at the moment the sound of your greeting reached my ears, the infant in my womb leaped for joy. Blessed are you who believed that what was spoken to you by the Lord would be fulfilled.” Luke 1:42b-45

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A What is agribusiness

(i) supplying of inputs needed for farming and
(ii) Marketing of the products grown from farm.

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