Are you looking for funds to start a new business or startup in Nigeria? Here are some ways you can get funding to finance your business ideas.
1. Pull your resources together
When it comes to raising money, the first thing is to have started. People find it easy to help when you can demonstrate commitment based on what you have been able to achieve on your own.
What you see most times are people who are begging with an empty hand. This should be a no no if you want helpers and value keepers to take you seriously.
Like Steve Harris will always say, “every big dream of yours has a smaller version, start from there.
At least register the business, trademark, patent or copyright the idea if need be. Get a website, create social media pages and look for followers, draft an idea plan and begin to execute. Then, go look for people who can help you to scale it.
You don’t need money to start, you need money to scale.Vusi Thembakwayo, South African entrepreneur
2. Friends and Well-wishers
When number one has been sorted, then approach friends and colleagues.
Most people have this erroneous belief that our friends and colleagues can’t help and mean no good. This is not true. Just as much as we have those who won’t help us, we also have a lot more people in our networks who will be willing to help us run with our dreams if only we ask them. Know the right ways to ask and show them what will be in it for them should they accept the proposal.
Friends and colleagues provide us with a low hanging fruit option when it comes to raising money.
When I started active investing, I didn’t start everything with my own money. I provided part of the cash and told some trusted friends and family members who joined me and we pooled funds together to start investing. And in about 12 months, we have done millions of naira in investment turnover with just a fraction of that being my own personal cash.
That’s how helpful friends and colleagues can be when you know how to approach and enlist them.
There is also nothing wrong in talking to your family or church members about a soft loan or even a non-interest long term loan. A family member might just say yes.
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. Join saving schemes aka esusu
Join a collective savings scheme aka Esusu. Assuming you work in an office or have access to good minds, you can bring such people together in a collective savings scheme where you all contribute money on a regular basis and take turn on the cash.
Let’s assume that you have 10 people who are willing to pool together 50,000 naira monthly, if you are the first to take turn, you will automatically be privileged with 450,000 naira of other people’s money that can help you kick start your business either full time or on the side.
This way, while you are still making money from your primary income source (maybe a job), you will immediately also start to get a side income from the business which will help you to continue your contribution while scaling your business.
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.