Follow these simple steps and you will raise Shs 20 million capital for your business
When you need 20 million capital to start your business but you don't have that much and even don't know where to get that sort of money from to start with, what do you do?
Do you forget about starting the business all together? Do you save until you accumulate that much in savings to start?
No, you create a smaller plan to feed into the bigger plan. You find some thing that you can do with the money to have to generate the money you need. If your dream is to start a fashion house and your capital requirement is Shs 30 million but you only have Shs 2 million in savings, the question then becomes what can I do to raise the Shs 30 million using the Shs 2 million I have.
I think some of you know about my famous Mulokoni story. I've had the chance to share it a lot of times on radio and TV and also on social media. How I raised the Shs 12 million I needed to start the business I wanted that I didn't have money to start. So it was about me hatching a smaller plan to feed into the bigger/grand plan.
So the plan would be start something small with the 2M. In the case of my Mulokoni story 6 years ago, I used about Shs 400,000 to get started. Bought a few things a pressure cooker, plates, soup bowls, spoons, trays and stuff. I hired space at a friend's bar.
What I did was go to the abattoir and buy two cow legs locally at about Shs 5,000 each which was Shs 10,000. I'd spend Shs 1,000 to clean them up. Use Shs 2,000 to buy charcoal and about Shs 6,000 to buy irish, cassava and spices and all that came to about a total of Shs 19,000 daily working capital. The two cow legs were cut into 12 pieces with each leg making 6 pieces.
That was 12 plates selling at Shs 5,000 each and Shs 60,000 daily. With this I'd manage to save 40,000 a day give or take, roughly Shs 1.2 million a month and Shs 14.4 million a year. Having a job that covered all my needs then meant I would save every penny.
I know many of you have heard this story before because I've told it over and over and some have even gone on to start the same business something am proud of. The dynamics of the market have changed though with prices having increased thanks to inflation it would not be possible to make the same margins like I made 6-7 years ago but such a business would be an example of a small plan that feeds into the bigger plan.
So if your dream business has big capital requirements devise a means to raise that money that my require little money. It could be selling juice at your work place, selling cakes,samosas or pancakes or jewellery. Anything with low capital requirements and good margins that would speed up your savings.
It also works as a training ground for when you get your dream business. You'll be much more prepared and ready to run it successfully.
Jaluum Herberts Luwizza is a Speaker,Writer and Contributor with the Nile Post.He is also a Business Consultant at YOUNG TREP East Africa's No.1 Business Management and Consultancy firm that helps people start and grow profitable businesses.
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