When you have an idea and you want to commercialise it, you need funding to get it off the ground. You need the money to purchase equipment like computers, phones and others. You also need money to pay support staff since not many of the employees, unless very passionate, would want to volunteer foor you.
There are a few places you might get funding from for your idea, especially in Kenya where commercial bank and formal institutions doesn’t have much faith in our innovations
Personal Savings — If you have been keeping some cash from side jobs or normal employment, you can fund the business yourself from that or by selling something which you really think will generate enough cash for the idea.
Bootstrapping — This is just getting funding of the business by running it and generating small or enough amount of cash to re-invest into the business and see it running. This really works when you offer services and you dont need much capital or you simply dont have to employ any extra persons.
Bank loan — If you have formalised the idea and think that the commercial banks might be interested in partnering with you, then go for a bank loan.
Venture Capital — This is where you get one wealthy individual who might or is interested in the idea and might loan you or invest in your idea for future gains.
All of the above means of generating funding for your idea have disadvantages and so you must check them out seriously. We will be giving you what to look out for in a Venture Capitalist and how to spot con-men masquaerading as VCs and stop them on their tracks.