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Trying to get money to start a business in Nigeria isn’t something that happens overnight – unless you are from a rich home. In most cases, your parents wouldn’t even want to lend you some money because of reasons unknown. To raise capital to start a business is quite difficult, especially in a country like Nigeria where investors aren’t so excited to become a part of your business ideas. Once it involves starting a business in Nigeria – on a tiny or large scale, the toughest question becomes “how do I get money to start a business”.
This is a retardant and a problem to several business starters and has typically destroyed the plans of supposed multimillionaire business. However not disputing the very fact that to get money to start a business in Nigeria is not easy, there are unique ways in which to get the required capital you need to start your business.
But before I proceed more to inform you on how to raise capital for a business to let’s inspect why individuals deem it troublesome to start a business with no money. Some fantastic points that you simply should get right if you’re serious regarding raising capital for your business are:
Factors to Consider before Sourcing for capital to start a business
Your business plan is very important
Your business idea should be well detailed to enable you to attract investors. So when you have a decent business plan or choose from this list of business concepts before starting the fundraising exercise, it will help you when the capital for your business starts coming in.
Vision and mission of your business
What is a business vision and objectives? Your dream business should have a stable goal.
Make a name for yourself
If you don’t have name and integrity, it would be quite hard for you to raise capital to start your business. I bet you, your relations won’t even hear you, so it is advisable to make a name for yourself before looking for how to get money to start a business.
14 Simple Ways to get money to start a business
Personal saving is among the simplest ways to raise capital for a business, particularly for little and medium scale commercialism. After you have a business plan and there’s no capital to start the business, lowering your expenses for the business could be a sensible strategy of raising a minimum amount of the initial capital.
Families in general
Your relatives and relations are important as to the fact that they can help you to raise capital for a business. It should troublesome for you to demand money from your family and relative because they might not believe you. Of course, you’ve got to trust yourself first. If you want individuals to trust you, you need to got to earn a high name from family and relatives; Families are a great source in helping an individual on how to get money to start a business
Friends and peer group
Outside your relations, the closest persons that may assist you to raise capital for a business are your friends and well-wishers. Again, they have to trust and believe your ability before they give you money to start up a business. If they trust and believe in your abilities, trust me they’re going to seemingly be willing to give you capital to start up a business. Begin with your closest friends; you’ll be able to promise to present them one thing reciprocally when the business turns up good.
Loans and Grants from a Charitable organization
Another way to get capital to start a business is by applying for loans and grants from any charitable organization. Most of these loans are non-repayable cash or product disbursed by grant manufacturers, typically a department, organization or trust, to a recipient, typically (but not always) a non-commercial entity, institution, business or a person.
For you to receive a grant, some type of “Grant Writing” typically noted as either a proposal or Associate in the Nursing application could also be needed. The kind of grants that I’m suggesting that hunt for businesses are grants from non- profit organization or philanthropic organization. You will be able to simply source for such a form of capital to start your business.
However, keep in mind, the most organization that offers out their money for you to start up a business keep an eye on you. They conjointly set benchmarks to live your success and monitor your business progress. Charitable organizations help in assisting an individual to start a business with no money.
Business investors are another great source of getting capital to start a business in Nigeria. They ought to be ready to see why they will give you money to start up a business.
Co-operative societies will help you on how to raise capital for your business as well as assisting you. Once you are part of any co-operative society, you’re eligible to borrow money from your cooperative once, you receive your own share of your money which may substantial enough to start a business, use it to start the business. However, you need to set up the way to pay at the due time.
Read Also: Best Business Investments in Nigeria
The partnership works fine after you meet somebody that has a similar business plan and core values with you. Two of you may bring up your capital to start up a business.
A partnership isn’t necessarily 2 individuals. In partnership, profits in business are shared based on the number of shares you have in the business. So, there’s equity and justice. Most multi-national and multi-international corporations begin from a partnership. Partnership business has several nice benefits over sole ownership business.
Plead for support
Getting interested individual, organizations or corporations to help you raise capital for a business project is a very good idea though it would require a payback course at a due time.
No organization, company or person that can assist you on how to start up a business will not sit back without seeing how they are going to have the benefit of the business project. So, before you start approaching any organization or individual for the support you need to have created certainty that you simply have enclosed the interest of the organization or individual sponsor at heart.
Bank of trade gives tiny, medium and enormous enterprises, excluding bungalow industries capital to start up a business.
Selling off unused facilities
Are there dumped books, technological facilities in your possession? Why then do you keep them with you? I believe any item that is not in use within your possession should be sold to make some money. Since you are looking for a means to make money, I believe this is another good way to get money to start a business – even though the money might not be enough. It is not bad for a start. Selling of unused items in your possession can help you on how to raise capital to start a business.
Bank loans are still a good method to get money to start a business. The only drawback with Nigerian banks is that they demand tons (collateral and security). I most cases, they turn down loan requests of many small and medium scale businesses.
Published press articles (writers)
Actually, it’s not the article that you’ve published that will give you money to start a business. However, it is the eye of the investors that you’ve attracted through your press article. Several giant business entrepreneurs have secured their seed fund via this suggestion.
This suggested point will help you on how to raise money to start up a business.
Read Also: 12 Easy Ways To Make Money in Nigeria
This field suggests a lot of jobs and task you’ll be able to do online to create cash, you don’t necessarily need to have money before you start this business. As you make money from these online jobs, keep a part of the money to start up a business Online jobs are vital because it will help you to raise capital for a business
Actually, this is not a decent suggestion on how to get money to start a business. However, it’s still important that I mention it. A lot of tiny and medium scale enterprises have become a big business with the help of the government. The reason why I said it is not a decent suggestion is that it is difficult to obtain.
To get money to start a business in Nigeria is so difficult when you don’t have the right information. I believe you’ve gotten the right information with this article, on how to raise capital for a business.