My final thread is on CAPITAL RAISING. There’s lots of opportunities for startups in Zim but the main hindrance is capital which is a very important part of building a business. I pray for the day when access to capital will no longer be a huge hinderance.
https://twitter.com/mentorshipzim/status/1364424475756941312
The 2 main types of capital are equity and debt funding. Equity is when you raise the money through the sale of shares and debt is when you borrow money and pay it back with interest. 
Pros of Debt Financing
1 You aren't giving up ownership of the company
2 The one who gives you debt doesn't have a say in the business therefore you think independently
3 You can plan ahead and make budgets we talked about because you know the repayment and interest amounts
1 You aren't giving up ownership of the company
2 The one who gives you debt doesn't have a say in the business therefore you think independently
3 You can plan ahead and make budgets we talked about because you know the repayment and interest amounts
Cons of Debt Financing
1 You have to pay back whether you are making a profit or loss. The lenders want their money otherwise they will take your assets away from you
2 Interest at times is high therefore increasing costs to the company
1 You have to pay back whether you are making a profit or loss. The lenders want their money otherwise they will take your assets away from you
2 Interest at times is high therefore increasing costs to the company
3 At times it’s not easy to meet the numerous requirements that the financier wants
Advantages of Equity Financing
1.There is no need to payback at all
2.No interest fees
3.Having partners is good because they can bring in their networks, experience which can be good for the business
1.There is no need to payback at all
2.No interest fees
3.Having partners is good because they can bring in their networks, experience which can be good for the business
Cons of Equity Financing
1.You always have to consult your partners in decision making and you may not always agree on how the company is run
2.You have to share profits
1.You always have to consult your partners in decision making and you may not always agree on how the company is run
2.You have to share profits
You have to think carefully about which way you will raise your capital. Weigh your options, look at the pros and cons. Decide what's best for your start up. Make a decision based on the financial needs as well as the vision of the startup.
Thank you.
@Dudu_Nyirongo
Thank you.
@Dudu_Nyirongo
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