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Capital by arrangement

Discussion in 'Financing Your Business' started by remnant, Mar 14, 2016.

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  1. remnant

    remnant Member

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    Some startups can become operational even without working capital at hand. I know of an enterpreneur who negotiated with a wholesale outlet for FCMGs to sell at his shop since he had no liquidity. On selling the goods, he would keep his profit share and disburse the rest to the wholesale outlet.
     
    Ezy likes this.
  2. Alaine

    Alaine Member

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    Online it's easier to start a business with no capital. Create a website, contact dropshippers and start promoting your site.

    I suppose though even offline this strategy could work but you might need connections because there's also the trust issue. Some people could sell the goods they receive and disappear. No one would be willing to take such risks unless they know you well enough.
     
  3. Ezy

    Ezy Member

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    Its doable, when the factor in your friends situation had a supportive secondary person/company and something to offset that persons risk.

    For those without a flexible arrangement and with previous capitol or stock exhausted keeping the project going by efforts such as no pay and working long hrs is the most likely course of action.

    Patience, sacrifice and persistence is the most common practice I have each day. Bit by bit with dedication even those without funding will find a way to sustain the project until it fruits, accepting not all will be done in the time frame we want and need.

    I believe we can avoid in many cases closing the doors before they open by allowing time for improvement and Sales to take effect. forums and other avenues online have been a huge blessing for start - ups to find support not available locally.
     
  4. Josephine Stuart

    Josephine Stuart MVP Member

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    Second this. I think it's a huge reason why many people are choosing to form their businesses online when possible -- there is far less overhead. It also allows the business owner and his/her employees to work from home, etc.

    But to go off of what @remnant said, some service businesses offer payment in the form of equity or percentage of sales. Not sure if this is what you're hinting at.
     

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