August 16, 2023

Ways to get funds for a startup business in Nigeria

Well, all youths nowadays have business ideas that can conquer the world, and of course, they need Money for this. Some ideas are good while others are not. However, here are some ways you can get funding for your business, don’t give up on your dreams.

  1. Beg your Family

Apart from the money you may have saved, 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. Obviously, you need to trust yourself, to begin with, in the event that you need individuals to trust you. You should need to fight for 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, call for a family meeting if you have to.

  1. 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. Once more, they have to trust and believe in your 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.

  1. 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, modernization 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 in other 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.
  1. 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.

  1. Get a Job that sustains your finance needs

In this day and age, you must understand that nobody can assist you as quickly as you want. So in other words to Fund your dreams, you might have to help build someone else’s dream too. Get a job, 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 too. You would be an even better CEO if you have had experience as an employee.

When you eventually get this cash, you can’t afford to disappoint people who have put their trust in you to build a great empire. You have to continue growing and thriving to make that business work for them and yourself too.

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