How To Raise Money, Get Capital To Start A Business In Nigeria Without Taking Loan
Businesses crumble in Nigeria all because funds are not available. Though this situation has really frustrated many young and potential business owners in Nigeria, becoming an entrepreneur can come into reality despite the problem of getting the start-up funds.
However, you’ll need funds to run the business you are passionate about successfully. Taking some preliminary steps will at least establish the fact that you’re already an entrepreneur that you’ve wanted to be so far.
In this article, I’m going to suggest seven practical steps you can follow to ensure you raise the needed capital for your business, though you need to realize the fact that a strong source of raising business funds is not the hope or assurance that the business will materialize. Your determination, entrepreneurial skill acquisition, and lots of actions will make you become successful in any business you’re going to venture into.
The funding sources would be needed to ensure that you actualize your dreams and potentials. Without getting a business fund, you’ll only be chasing the shadows all around without actualizing anything at all.
Securing a loan from a commercial bank will not be encouraged as so many small scale enterprises have become frustrated and bankrupt in respect of trying it.
Here are some great ways to raise money for your new and existing business without facing the kind of frustrating consequences that commercial banks impose on their debtors:
- Design special savings over a period of time
- Get funds from friends and family
- Secure funds through partnerships
- Get funds from a private investor
- Open and run an account with a micro-finance bank
- Join a cooperative society and secure funds
- Obtain government grants
Design Special Savings over a Period of Time
You can design special savings simply by opening a savings account with a bank. You’ll have to save tokens in that account for a couple of months. This step must be taken prior to starting up the business.
You may be thinking of what the need would it be again to raise business funds since you would have to design special savings. Yes, you are right, though that is not what designing special savings is all about.
The way most people go about the starting up of a business enterprise is really wrong. Everybody needs to understand the fact that those who help to raise business capital work hard to get funds too and would only want to be sure they’re raising a fund that will surely get back to me even with yields.
The proper way to go about designing special savings is to consistently save in a bank account for an intended period of time before which you can start the business fully.
Get funds from Friends & Family
It’s quite possible to raise funds through a friend or family member who may have passion for helping you actualize your dreams. Though this doesn’t work out in some cases, it really works for some people depending on the quality of the friends and family they have at their own disposal.
So, this may not be a reliable means of raising a business fund to most people as some may not believe in getting such help from a friend or family.
Secure Funds through Partnerships
Are you engaged in a partnership in the place of work? If so, this could be a great opportunity for you to get business funds.
If you’ve been involved in a partnership or group with some real people for some time and you’ve never ever made such a request, it may be the right time for you to leverage that group or partnership in getting part of the fund you need for starting up an entrepreneurial business.
If your partners are really passionate about your fortune, they will consider helping you raise the needed and requested fund. Though you may be required to pay back, you’ll surely be given the opportunity to do that when it’s convenient for you.
Open and Run an Account with Micro finance Bank
Do you have microfinance banks in your locality? If yes, why not leverage that as an opportunity to get some funds.
Microfinance banks are established in Nigeria purposely to eradicate poverty among Nigerians. Though there are requirements to be satisfied before funds can be disbursed, getting capital funds is guaranteed as this is the purpose for which they are operating.
Usually, most of these micro credit agencies require that you run an account for at least a 3-month period before you may be eligible to apply for business funds. And once this is met, getting funds disbursed to your account is feasible.
Microfinance banks have come to bring about a relief to the stress people have been made to pass through so far at commercial banks over the past years.
Join a Cooperative Society and Secure Funds
In as much as there are cooperative societies at workplaces, this is yet another means of getting a business fund without taking a long queue at all.
Just like the micro finance banks do, the cooperative societies too give out their own requirements first before funds can be approved for anyone. No protocol must be jumped. No rule can be bent for anyone as the case may be.
To my own understanding and from personal experience, members pay dues to their respective cooperative societies and they get access to funds anytime they want as non-defaulting members.
One advantage in raising business funds through this means over the micro-credit agencies is that little or no interest is charged on the funds given.
Obtain Government Grants
Though in Nigeria, getting a government grant is not feasible in some cases, people who know their way out do get it here in Nigeria and, of course, in other parts of the world.
Recently, a group of non-governmental organizations in Nigeria raised grants to the people in almost all the states of the federation in which some people got up to N6,000,000 disbursed to their own accounts.
In order to ensure that you don’t miss out on such an opportunity, be rest assured to listen to the news and seek information from other people around you.