Many people are opting for businesses today. In fact, we are always encouraged to do something out of the formal employment that will earn extra cash. Students are encouraged to start small businesses which will earn them money to cater for their needs in school. Someone might be wondering, why business and where am I going to get the capital to start one? Read on to get some of the benefits of starting own business and sources of capital.
Benefits of starting your own business
This one of the major reasons why people start their businesses. No one is above you. You will control everything and sell whatever you want to sell. The joy of not being commanded around by a boss is what makes people start their businesses.
Enjoy the profit alone
Yes, all profits will get into your pockets. You are not bound to share with anyone or spend it with someone else. You will decide if to expand the business or use it for other needs. Some business owners who are students will use the profits to pay school fees or cater for vacation.
Compared to formal employment, businesses are very flexible. You might decide to take a part-time job, but still, you will be under someone. If you have other things to do, personal business is the best option. You will close it to take exams of doing anything else of emergency without having to report to anyone.
Sources of small business capital
This is the number one source of business capital. If you are employed, you could save a certain percentage of your salary to start a business. Students can save the amount given to them by parents as pocket money. Savings requires a lot of discipline and sacrifice. The good thing with savings is that you will not be required to pay back the money.
Family and friends
With a realistic business idea, you can approach your parents or siblings for capital. You only need to convince them that it will work and there you are sorted. You must, however, have proven that you are a good spender and that you can be trusted with money for your family to finance your business. An advantage with capital from family is that you will not be required to pay them.
If the above options did not work, identify a financial institution like a bank or a Sacco to lend you money. You can borrow from friends as well. For loans from financial institutions, you will be required to repay with interest. Friends can be lined.…