Ways to fund any business in Nigeria is fast becoming a question on every young entrepreneur’s lip.
Even though experts generally agree that finance is not the biggest problem facing Nigerian entrepreneurs, many of them still believe that it still ranks among the first five.
So how can entrepreneurs in Nigeria solve this most important business problem? Are there easy ways to raise money for business in Nigeria, and how can one go about it? There is no problem without a solution and we are going to proffer solution to this major problem here with this post.
Understanding the critical importance of funding to Nigerian business owners and entrepreneurs, Start-Up Digest, in its characteristic manner, has dug up some of the easy-to-get funds available in the country this year.
Eight(8) Legit ways to fund any business in Nigeria (2018)
1). Beg your Family
Apart from the money in your Piggy bank, another method for raising enough money for your business is through family and relatives but you have to win their trust first. It might be a problem trying to get cash from your family and relatives in the event that they don’t believe in your idea.
Obviously, you need to trust yourself, to begin with, in the event that you need individuals to trust you. You should need to fight for their trust and you need to show your business thought as one that is achievable with the funds you are requesting for. There is no shame in begging for assistance from your Family and close relatives at all, call for a family meeting if you have to, lol.
2). Friends and well-wishers
Outside your relatives, the closest people that can help you raise startup capital for your business are your friends and well-wishers. Once more, they have to trust and believe in your capacity before you get cash out from them.
Introduce your business idea and a well-outlined business plan regardless of how little the business will be; they might just be willing to assist you monetarily. Start with your dearest friends; you can guarantee to give them something consequently as the business grows. Friends and well-wishers should come in handy when you want to start a business.
3). Crowd Funding
Crowdfunding is getting a lot of press lately and it should. It’s turning into an accepted process to raise money for an idea, product, or entire business. Entrepreneurs now have to crowdfund as a finance option when they’re thinking about financing their business. Crowdfunding can be a complement or substitute for traditional forms of financing, like angel investing, venture capital, and bank loans.
But with different flavors of crowdfunding to choose from, which is the right one for an entrepreneur to choose? That’s the subject we’ll explore in this article.
4). Bank of Industry (BOI)
Bank of industry provide Small, medium and large enterprises, excluding cottage industries with funds for starting their business; new or existing companies, seeking expansion, modernisation or diversification; credit worthy promoters who will be required to prove their commitment to the project by contributing at least 25% of the project cost excluding land, borrowers whose management capability, financial situation (including availability of collateral and guarantee), character and reputation are incontrovertible; clients with demonstrable ability to meet loan repayments, borrowers with no record of unpaid loans to erstwhile development finance institutions and other banks.
You can obtain access to Bank of Industry facilities in 3 easy steps;
- Step 1: Write a formal application letter
- Step 2: Completion of BOI’s Questionnaire
- Step 3: Submission of Forms and Questionnaire.
So, if you think you’ve met up with the bank of Industry requirement you can comfortably visit boinigeria.com to download the appraisal form and complete their questionnaire for your business funds startup.
5). Grants and Angel investors
Another source of fund for a new business is a business grant. Grants are non-repayable funds or items dispensed by grants givers, regularly by government, associations or trust, to a beneficiary. Angel investors are basically the wealthy individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership shares.
Both for the people willing to give you a grant in your business and the Angel investors, all you need to do is to convince these individuals with a very outstanding business proposal or plan as it may be. These people can be anybody oh, from your father to your lecturer that believes in you… anybody.
6). Get a Job That sustains your finance needs
In this ‘Buhardship’ it is understanding if nobody can assist you as quickly as you want. So in other to Fund your dreams, you might have to help build someone else’s dream too. Get a job, work for a few years in other to save money and also gather experience too. You are going to need all that wisdom to run your business too I promise you. You would be an even better CEO if you have had experience as an employee.
When you eventually get this cash, you can’t afford to disappoint people who have put their trust in you to build a great empire. You have to continue growing and thriving to make that business work for them and yourself too.
Like investors, partners also reduce your financial burden/responsibilities. A partnership is simply an arrangement where parties agree to cooperate to advance their mutual interests. The partners in a business could be individuals, businesses, interest-based organizations, schools or governments.
So partner up with that friend or relative that has the money that you don’t and make your dream business idea become a reality.
It is, however, prudent to always sign a partnership agreement stating clearly all the terms and conditions attached to the partnership before you both start it up.
There are dozens of competitions out there with significant amounts of money as the winning prize. Join one, stay committed and win yourself the prize and put it in your business.
One example of such competitions is the YouWin registration 2017.
Competitions are perfect ways to generate funds for your business too.