Bangladesh is a hotbed for business creation and growth, a fact that has led the UK’s influential Institute of Export to name it as ‘the new Asian Tiger’. The efforts of country businesspeople has driven 7.11% growth in GDP year on year. With so much international interest, there has seldom been a better time to get started in business. For those with a big idea, one of your first considerations must be cash flow. According to The Balance, more businesses fail due to lack of cash flow rather than profit. It’s important to realistically estimate your capital needs, and then find a suitable way to meet them.
What do you have available?
Your primary method of funding your business will often be your own funds. Bangladeshis are relatively good savers when considering the wider economic picture of the country; Channel News Asia reported that personal savings rose 0.3% despite a large deficit in the country and increased cost of living. Look at diverting a little extra of your salary to your business. You can also look at the plethora of money-saving options the internet offers. Vouchers are readily available from many outlets, and there are price guarantee services that can enable you to save on larger purchases. A little goes a long way, and you’ll soon find the pennies stack up when you’re first founding a business.
Looking towards credit
Business loans are another important source of income. The Dhaka Tribune reported in 2017 that there was a planned 20% in the issuance of business loans, creating a total of Tk23,500 crore issued to new businesses every year. This indicates a generally relaxed lending environment where you will get a fair crack of the whip when applying for loans. Just ensure that you have the discipline and ability to repay your loans, and come equipped with a business plan to provide a little assurance to the bankers.
Asking for investors
Many businesses find their lift through venture capitalism and other investments. According to Trading Economics, Tk14,000 crore has been invested into the country in 2018 so far through foreign investment. If your idea has a unique or international appeal, it’s worth looking into foreign investment. You can also consider crowdfunding; Statista estimates that Tk1.3 crore has been raised worldwide through this method.
If you’re thinking of starting a new business in Bangladesh, you’re not alone. The most important factor in your business to ensure it’s longevity is funding. Assess your options and act decisively to ensure your business can flourish.
Author: Jenny Holt