How to get working capital without borrowing

Getting working capital for starting a business is the second best thing to do after getting a great idea .Borrowing money to use as working  capital is just the known option available to most entrepreneurs when they can’t afford the business expenses or when there is no investor to invest in the business.

Due to the uncertainty in the financial world today, many people find it very hard to lend money to those around them to do business and because of this many people who are having beautiful ideas to make money have never being able to start their business.

Here in this article I will outline some few ways to help you ovecome  these problems and enter into your dream businesses.

Why are most people unwilling to lend their money out?

The reason is simple ,no one want to lose their money but will rather want to gain more .So most people will only give out their money by first considering their personal benefits .And some after  even hearing about a profitable business, still won’t invest due to lack of confident in the business or the person running the business .

Ways to get working capital from people without borrowing

    1.Know their interest

Put the person’s interest in front of yours by looking at what they want and help them get it. Do they want more money or want to have a business or want to enjoy life more etc. All these questions are ways to get people. If you have ever gone for fishing with a hook before, you will certainly know that you can only catch a fish by using the food the fish eats as a bait on the hook. You can never catch the fish with the food you like eating but with only the food the fish eats. It the same way you only get people  through what they want.

2.      2 .Get them their interest

 After knowing what the person wants, offer to help them get what they want and make a business from that. Since a business of this kind is crafted to meet the person’s need or interest., they will willingly offer you money to do it by thinking you are rendering them a service ,which in turn you have gotten it all planned out to do business with their money without borrowing .

How I applied this and got money to do business without borrowing

 One day I came across a wholesale men shirt shop in the heart of the city of Accra and I went in to negotiate a good price for my order but I wasn’t having the money to buy the shirts so I came up with a plan. I have a lady friend who has the money I needed but she won’t give me that money if I ask her for a loan but I knew she likes to do a new business that can help her make more money. So, I told her I have just been made an agent to a wholesale shirt shop and I can help her get items from that shop at very low price which she can then sell at higher price to make some profit and she obliged and gave me the money to purchase for her. I went to get the items at a lower price than I told her and brought the items to her but I made a profit from the price differences .In doing so I have use her own money without borrowing it to buy items for her and I have sold it to her at my own price without her knowledge and I made my profit .

Now if you are not a business person you might think this is a fraud but remember in business no one sell any product at it original price. Every trader always adds an amount of money to original price of the product before selling.

 

3.      3. Provide what companies or businesses are in search for.

a.       Provision of skill men

There are many people who have built skills in various field but are not able to get places or opportunities to always trade their skills for money. Now ,knowing which skilled person you can have access to, you have to position yourself as someone with access or provider of the service of the known skill and then look for a company or an individual that is in need of the services and then make a contract deal with them. When you get the contract, you then hire the skilled men to render the service for you and the company will pay you and you in turn pay the skilled men. What you have done is, you have used the individual or company’s money to do what they want and have made profit on it.

             b.      Provision of products

There is always financial transaction between businesses ongoing each day. The manufacturing companies are producing goods which will be sold to the wholesale distributors who will then sell to retailers. These businesses already have their operating capital to do their business and hence intermediating in any stage to help them transact business with ease or helping them to buy at better price will put you in the position of doing business with them. To achieve this business intermediating, you have to search for wholesale shops and negotiate a lesser price with them and after that, you can go and look for retail shops who may not know of your wholesale shop and assure them you will like to provide them their goods at a lesser price. First let them know you are a distributor of their goods and then tell them  your price, and if it ok for them ,you will get the contract of being their supplier.

I hope this will help you come up with a plan to get a working capital to start your business if your don't want to borrow from  anyone.