You can potentially fund your own venture. According to Brent Gleeson: “if you believe in your vision and have an absolute refusal to accept failure as an option, you should feel comfortable investing your own money into the business.” Here are the quick takeaways we have for you;
- Raise more capital than you need
- Do extensive diligence on potential investors/board members
- Focus on “efficient growth” vs. “growth at all costs”
If your business plan requires you to raise 1 million, raise 1.5 million. And then once you raise it, pretend like you raised 1 million and operate based on that. But be thoughtful about how much money you’re raising. So that you Don’t spend 1.5 million in 12 months, or else it’ll be trouble. In simple term “raise more, spend less”. If You’re wondering How to raise Capital for your Business by now,
Below are 5 easy ways to raise capital for your business
- Personal Savings
- Get investment from venture capitalists
- Apply for a loan
- 4. Solicit Capital from Friends and Family
- Crowdfunding
How to raise Capital for Business in Nigeria
1. Personal Savings
If you save your money, one day it’ll save you. So learn to save from your little income. Even though most people find it very hard to save money, this is one of the best method to raise Capital for your business.
Set a target for yourself depending on how much income you earn. If you find it hard to save money in your bank account I recommend you try one of this online saving platforms like PIGGYVEST.
This will be easy to raise due to less formalities/compliances, plus less costs of raising. Personal savings should be considered as a first funding option because of its advantages.
2. Get investment from venture capitalists
Think about the core problem that you’re solving and how that problem impact on your immediate community.
Once your business can solve a need or problem in your environs then, get on the phone with a specific partner at a firm accessible to you, that wants to or is likely to invest in your type of business.
They will potentially take a board seat. So make sure you understand who the partner is that you’re working with so that you don’t end up working for somebody from your own initiatives.
Ngo’s
NGO’s, or non-governmental-organization, are also very helpful in raising capital for a small business. Keep in mind that the NGO may not be able to provide financial assistance directly, however, they will able to guide you in the right direction to reliable sources of capital generation.
How to raise Capital for Business
3. Apply for a loan
I know this might not go down well for some people but it’s one of the most effective ways to raise Capital for A start up Business. A lot of banks are willing to give you loans if you can meet their demands. You need to ask yourself if your Business Idea is worth collecting a loan.
SEE ALSO – 50 Business ideas in Nigeria You Can Start With Little Capital
If you’re certain your business plan tendencies of yielding profit within the agreed timeframe. Then there’s nothing wrong with trying out Loans from banks and other Companies.
4. Solicit Capital from Friends and Family
Relationships really matters and they matter over a long period of time. There’s no harm in asking for help from your family and friends. All you have to do is convince them that they’re not just wasting their money.
Give them something to hold, show them your business plan and explain every necessary details to them. Growth is important, but efficient growth is even better. You don’t have to ask for millions or the complete amount you needed, try and save some money no matter how little prior to soliciting from them.
This would give them a sense of believe and as well show a sign of seriousness from you. Most families and friends won’t help you if they discover you’re lying or you’re not serious.
5. Crowdfunding
Crowdfunding is one of the newer ways of funding a startup that has been gaining lot of popularity lately. It’s like taking a loan, pre-order, contribution or investments from more than one person at the same time.
This is how crowdfunding works – An entrepreneur will put up a detailed description of his business on a crowdfunding platform. He will mention the goals of his business, plans for making a profit, how much funding he needs and for what reasons, etc. and then consumers can read about the business and give money if they like the idea.
Anyone can contribute money toward helping a business that they really believe in. The above is our suggestion of 5 easy ways to Raise Capital for your start up business. If you there’s anything we missed or you liked, let us know via the comment section.
