Some of the problems faced by people that have quest to start up new business is how to get fund. There are many businesses with fascinating proposal that can bring a lot of profit in a short period. Therefore Here are some ways you can get funding for your business, so you don’t give up on your dreams.
1. Family and relations
Apart from the money in your savings, if you have any, 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. This is where you need the trust capital. Nobody can raise trust capital for you except yourself. Obviously, you need to trust yourself, to begin with, in the event that you need individuals to trust you. You should work hard to earn 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. Just earn the trust of the influential members of your family circle.
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. But again, the trust capital is crucial. They have to trust and believe in your character and 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. Development Finance Institutions
In Nigeria today there is awakening on the part of the government to increasingly get the Development Finance Institutions, DFIs, to create funds for startups, Micro, Small & Medium Enterprises, MSMEs. Before now they hardly provide funds for this category of businesses especially the startups. The DFIs include Bank of Industries, Agric Development Bank, Development Bank of Nigeria etc.
However, you will be required to prove your commitment to the business by contributing at least 25% of the cost excluding land. They would also be looking for that borrower whose business 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.
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 startup, 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.
5. Save from existing job or income stream
In this state of economy in Nigeria it is understanding if nobody can assist you as quickly as you want. So in other to Fund your dreams, you might have to help build someone else’s dream too. Get a job, and if you have one already, work for a few years in other to save money and also gather experience too. You are going to need all that wisdom to run your business. You would be an even better CEO if you have had experience as an employee.
When you eventually get this fund, make wise use of it so as not to disappoint people that help you and yourself.