Business capital tips- In the business world, there are various types of venture capital. There is capex (capital expenditure) aka capital expenditure and opex (operational expenditure) aka operational expenditure. Preparing business capital is a must if you want to run a business. Capital expenditures are usually funds that are disbursed to start a business. While operational expenditure is routine business capital that must be issued every month or year, such as employee salaries, electricity and water costs, rent for premises, and other company operational activities.
Saving tips for your business capital
How to raise this business capital? Here are saving for business capital tips quoted from Kompas:
1. Set aside salary
If the business that you want to run is considered as your side income, while the main job is an office employee, you can set aside money from your salary every month for this venture capital.
The percentage depends on your capability. The more you can allocate, the more business capital is collected. For these saving tips, you can generalize the percentage of the business capital budget with an investment of 10 percent of salary.
Place the money in special savings account for business capital. You can put it in a time deposit or savings account
2. Dare to invest
Invest money in instruments that offer high returns, such as
- stock investments,
- gold investments,
- equity mutual fund investments,
- peer-to-peer lending investments,
Returns or returns from investments can be used as business capital savings. Calculate your expected investment return and time period prediction. By this, you can determine the amount of the investment budget that you have to spend every month.
For business capital tips example, for capital and operating capital, it requires an estimated fund of Rp. 500 million (already calculating inflation) to start a business. The target is to open a business in the next 5 years.
Stock mutual fund investment with an expected return of 16 percent per year.
Thus, you need to set aside an investment budget of around IDR 5.5 million per month from your salary.
3. Find extra income
If you cannot allocate your salary as an office employee for the investment budget and savings as business capital, you should find additional income. For instance, you can find a freelance job.
You can disburse all of the income from this side job for business capital. Make your business plan an injector of enthusiasm to be active and diligent at work.
4. Allocate bonuses and THR
Bonuses and THR are the mainstay of office employees to achieve financial goals, one of which is business capital.
When you get a bonus and THR from the office every year, resist the spree. Remember, there is a big goal that you must achieve, which is to collect business capital.
Not only initial capital but also for running the business. For example, all bonuses are allocated for business capital.
While THR, 50 percent is for business capital, and the other half is for holiday needs.
5. Go public
When you are already running a business, and it starts growing, the solution to get business capital is to offer IPO shares or go public.
From the proceeds from the sale of initial shares, usually, the company will reap fresh funds that are the target of going public.
The funds obtained can be used to carry out a number of business steps. Such as :
- building new factories or production facilities,
- rejuvenating old factories,
- expanding business overseas,
- increasing production capacity,
- paying debts,
- woking capital
In addition on business capital tips , by going public, companies can be more trusted by banks and other financial institutions. Especially for applying for loans in large amounts. It is easier to issue debt securities, both short and long-term debt securities or bonds. Also to collaborate and find business partners, investors to invest in the company.
- Looking for investors
When building a business, you can look for investors as lenders or investors. This capital injection is important for business continuity, because running a business requires a lot of funding.
The more investors you can attract, the more financial or financial assistance you will get.
That way, you have the certainty of funding sources to build and develop your business going forward. Many Roads Lead to Rome Being an entrepreneur must be innovative, creative, and out of the box.
Think of all the good ways to get business capital, other than applying for debt. As long as you have a strong determination to build a business, there must be a way to raise business capital even though the amount required is very large. Cheers to the warriors!