Week 6: Tafuta Capital for Your Biz 🤑
Starting a business requires money. But where do you get it? Many entrepreneurs struggle with this question. The good news is, there are many ways to raise capital—you just need to find what works for you.
Over the last 5 weeks, ume come up with a biz idea, umebonga na customers and competitors, done the math kujua kama biz inaweza ama haiwezi, and tested your biz idea. Now we just need a plan to get the money to start.
Let's look at how James did it
Ana-need capital ya how much ku-start?
James wants to start a lunch delivery business for office workers. Here’s what he needs to get started:
Anaweza get doh wapi?
1️⃣ Personal Savings – James ame-save KES 10,000 from his previous job, which anaweza invest in his business.
2️⃣ Chama Loan – Ako part of a savings group (chama) na ana-plan kuchukua a KES 20,000 loan, which he can repay in small instalments.
What are the Pros and Cons of Each Method?
Looking at his 3 best options, James decides that he will use his savings first and take a small loan from his chama to cover the remaining costs. If the business picks up, he will reinvest profits instead of borrowing more.
THIS WEEK'S ASSIGNMENT:
Step 1: Grab Your Costs
Review cost ya vitu unataka kuuza ma ku-deal nazo ile uli-create in WEEK 4.
Based on this, calculate the total amount of money una-need ku-start biz yako.
Step 2: Explore Options Zako Za Funding
1️⃣ Learn from Others: Interview an entrepreneur unajua who successfully raised money to start their biz na vitu unaweza learn from them.
2️⃣ Identify at least 3 ways you could fund your biz. Zinaweza include:
➡️ Personal savings
➡️ Family and friends
➡️ SACCOs or Chamas and savings groups
➡️ Loans from banks, microfinance institutions, or digital lenders like mobile apps
3️⃣ Compare & Evaluate: For each funding option, answer the following questions:
➡️ How easy is it kupata?
➡️ What are the risks and benefits?
➡️ What are the requirements or conditions?
Step 3: Create a Funding Pitch
Choose one funding source ile ina-fit poa kwa biz yako. Write a 150–200 word pitch explaining:
➡️ How much money you need
➡️ How you plan to use it
➡️ Why this is a good investment opportunity
Make pitch yako clear, convincing, and professional, then share it on MESH for a chance to win X!!
Listen to Brian as he shares 3 ways unaweza get doh ya biz
💰 Personal Savings
💵 Loans
🤝 Family & Friends
Remember! Kila method iko na pros and cons—choose what works best for you! 🚀
Ku-more ideas on how to raise capital, and discuss the best method for you and other MESHERS...
Join MESHERS Live Session! Come tubonge na ku-share ideas.
📅 Date: 27th February, 2025
⏰ Time: 8-9pm
🔗 Link to Join: Live session