It would be an enormous understatement to say that it is tough to obtain finance for your firm, particularly if you have no savings. After all, money doesn’t just magically appear.
But if you’re prepared to take chances and you really believe in your business concept, there are a number of other options for raising capital for your venture.
Ways to Fund & Finance Your Philippine Business Idea
Get a Side Hustle
Getting a side hustle is another option to earn money. Depending on your skills, there are several methods to earn extra money through side jobs. Here are some suggestions for your side business:
- Freelance writer – You can work from the comfort of your home on a variety of writing projects. You can write content or copy for a variety of websites. This is the side job for you if you think of yourself as a wordsmith.
- Virtual assistant – You might serve as the client’s busy secretary or assistant. You may set up meetings, browse and respond to their emails, or even manage their social media profiles. This is one of the ideal part-time occupations because many of these duties are administrative labor that doesn’t require you to work for eight hours a day.
- One of the best part-time occupations available is teaching English online. You only need to have good English skills and be patient. I’m done now. Additionally, since most tutoring sessions are brief, you won’t need to put in eight hours a day of labor. You can earn extra money by taking on only one client, giving them your whole attention, and teaching them for 2-4 hours each day.
- Graphic designer—Depending on your proficiency with Photoshop, this may be a fantastic side business for you. You can definitely work in graphic design as a side gig if you want to edit or illustrate pictures. Depending on how quickly you brainstorm design concepts and work in Photoshop, you can only accomplish this for 2-4 hours per day. Additionally, being the artistic kind, this is a fantastic method for you to leverage your creativity to get money. Why not adore it?
- Join Grab; in recent years, many Filipinos have discovered this side business to be extremely profitable. It can also be something you should think about, particularly if you have the money to spend on a new car.
Please Read: Profitable Blog Niches to Start in 2022
Save more!
You are not required to launch a business right away. You may build up savings for a small business if you are persistent enough. You may start a side business selling street food for just Php 5,000.
The minimum investment you might make to get started in franchising is between Php 20,000 and Php 30,000. Even though it’s still a large sum of money, if you work hard and are thrifty enough, you may save up for it in a year or less.
Asset Liquidations
You might think about selling any unused assets that are losing value. Car values typically decrease over time. Therefore, if you’re trying to decide what to sell, your car might be the greatest choice.
Because it is far less expensive than a house, it is simpler to sell. However, depending on the type of automobile you’re selling, you might be able to get enough for it to fund the opening of a small restaurant or a franchise. Additionally, selling a car will go more quickly than selling a house.
Depending on how much capital you require, you could also sell jewelry, electronics, pricey bags, limited-edition comic books and other goods, and virtually anything that is worth selling.
Request a Loan from Family or Friends
You can always enlist the aid of your friends or family. Although it makes sense if this is a delicate subject to discuss with your loved ones. This is challenging because, if things go south, doing this can result in a fight with your significant other.
And as we all know, resolving disputes between friends or family over money hasn’t always been simple. But if you genuinely think you can succeed in this venture and you don’t think that anything—not even money—can separate you from your friends or family, why not go for it?
A piece of advice would be to create a thorough and concrete business plan for your concept. It’s tougher for your friends or family to believe you’re serious about something if it’s simply a notion with nothing concrete for them to see. But if you have a thorough plan written down and bound, people might be convinced that you mean business!
Bank Loan
Obtaining a bank loan is another strategy to help your business take off. If you want to start a firm from scratch or finance an expansion, business loans are fantastic.
These loans offer more accommodating terms, particularly with regard to loan tenure and interest. Since many banks in the Philippines are committed to helping MSMEs, your prospects of approval are excellent.
Lend money to the government
Obtaining a loan from the government to launch your business is another option to borrowing money from a bank.
The Social Security Service (SSS) provides business loans through its Business Development Loan Facility, which is a lending facility created to support the nation’s economic growth and development by offering financial support to the business sector for the purpose of enhancing potential earnings through expansion, diversification, and other business development projects.
Single proprietorships, partnerships, corporations, and non-profits that are at least 60% owned by Filipinos are all eligible borrowers.
Crowdfunding
You can consider crowdfunding if you think your business concept is absolutely brilliant and that there is a true demand for it.
A creative project with a modest budget can be funded by using crowdfunding websites like Indiegogo or Kickstarter. You’ll decide how much money you want to raise over a specific time period, such as $1,000 (P50,000) over 40 days.
The website is then used by your friends, family, and strangers to make donations. Since its debut last year, Kickstarter has contributed to almost 1,000 projects, ranging from rock albums to documentaries.
For example, if you donate $20 (P1,000) for an independent video game, the designers will give you a full copy of the game together with extra goods like posters and/or keychains.
Conclusion
Starting a company from scratch is a difficult task, especially when it comes to financing. But the proliferation of loan platforms and avenues for connecting business owners and investors altered the dynamics.
Please Read: Dividend Investing
You can find out where to raise money for your Philippine business from this page. Finding someone who shares your goal and gives fair conditions is all that remains now.
No matter what, always keep in mind not to borrow money carelessly. Do it with purpose, a plan of attack, and a way out.
