Are there easy ways to raise money for business in Nigeria? Yes. This Article will look into five ways to get funds to start up a business.
- 1 What are Funds?
- 2 5 Ways to Raise Money for Small Business in Nigeria.
- 3 Conclusion
What are Funds?
In business, the term funds refers generally to the pool of financial resources available for near-term use.
The organization’s funds include cash on hand, of course, available for immediate use, but also other liquid assets that will become cash in the near term, as needed. Thus, “funds” has about the same meaning as “available cash.” Business people prefer the term funds when referring to money designated and available for a specific purpose.
To raise money for business has never been easy for entrepreneurs in Nigeria. It is one of the greatest challenge and would be business person could face. It doesn’t matter how beautiful your business idea looks like or how close to your heart it is, once you’re not able to raise the money to put your ideas to motion, such idea is as good as dead.
Well, all youths nowadays have business ideas that can conquer the world, and of course, they need Money for this. Some ideas are awesome while others are not so super, lol. However, here are some ways you can get funding for your business, don’t give up on your dreams, you might just be the next Bill Gates or Aliko Dangote.
5 Ways to Raise Money for Small Business in Nigeria.
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.
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. 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 meet up with the bank of Industry requirement you can comfortable visit boinigeria.com to download the appraisal form and complete their questionnaire for your business funds startup.
4. 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.
The type we normally refers to as “Daily Contribution” It can be daily, weekly or monthly contribution — look for group of people with common interest and start the contribution with them. This is similar to personal savings, the only thing different is that others are involved.
Each time you contribute, someone among you take it — do it until it reaches your turn. When you get yours, quickly put it into the business before other expenses carries it off.
Everyone in your co-operative must be people you trust to an extent, if not someone might attempt to disappear after collecting his without fulfilling same obligation to others. It is a bit risky but sure way to raise money for business in Nigeria, especially if you are fortunate to be the number one or two in the collecting order.
Succeeding in business takes work, patience, determination and of course, money. This article, hopefully, has taken care of the money side. The rest is up to you to get the necessary fund for your business and use it appropriately.
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