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 death.
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 solution and we are going to proffer solution to this major problem here with this post.
I am not going to suggest banks because I know you may not be comfortable with that idea due to how banks in Nigeria are fond of turning small businesses down. No matter what you do to impress them, they may never get impressed after all. So we want to focus on simple strategies that has worked effectively.
Below are some of the top means of raising money for any small business in Nigeria fast enough to put you on the drivers seat in your new start up. I sincerely believe you can make it with this suggested means of raising money because it has worked for many and will surely work for you if you try it.
1. Personal Savings – This is probably the best means of raising money for any business. I understand what is going on in your mind right now – if you have personal savings will you be looking for how to raise money, right?
Well, the problem is that we don’t use to approach this the way it should. We hit business idea and we want to raise the money to get started straight away. No! Give it some time like 8 months or one year. During these period of time, you design special savings scheme and work towards it.
Learn how to deny yourselves of some luxuries at this point in time. If you have been spending N100,000 monthly, starts spending N60,000 and saving N40,000 towards your project. You’ll find out that much money can be saved simply by just denying yourselves a bit.
2. Family and Friends – These are the people that trusts you most in life. There is no how you wouldn’t get some substantial amount of seed investment from them if you come out openly and sincerely to them. Make them see the viability of your business idea and promise them something if possible.
If you can’t get your family and friends to trust your investment idea, trust me you will find it hard to get others to believe you. Personal reputation is very important in this regard; you don’t wait till you need money before you work on this. It is an asset you can fall back to in time of need. Therefore, develop good reputation among your family and friends. If you already have it, this is the time to tap into it and get that needed start up fund for your business idea.
3. Co-Operative – This is simple. Join one now and save some amount of money with them on regular basis till some period of time, maybe six months. Whatever amount you’re able to save, they will double that for you while you pay gradually and at reasonable pace.
This means of raising money currently enjoys good commendation among entrepreneurs in Nigeria. Many businesses have been known to be resurrected back to life through co operative society’s funding. It is a win win game.
4. Partnership – Do you know someone with similar idea like yours? Or someone you can trust to work with? Approach this persons for possible partnership, preferably someone who is more financially buoyant. He may have the money while you have the idea.
Partnership is one of the biggest driver of invention if you seek and finds the right partner. Most of the world’s biggest companies today came as a direct result of wise partnership.
5. Angel Investor – Angel investors are not necessarily some invincible money bags hiding somewhere near Silicon Valley. No, they may just be that your uncle in Lagos or that your beautiful aunty living in Abuja. He may just be that big man in your village or your street where you live. He may even be the MD of the company where you work.
Approach any of these guys and offer them some percentage of your equity in exchange for seed investment. Make sure your business plan is good enough to convince them to invest.
These are my top 5 practical means of raising money for business. YET there is one I haven’t mentioned yet. Very quick means of raising money for business, quicker than all of these.