You have that brilliant idea that could change the world (maybe not change the world, but can make a difference), unfortunately, you don’t have a rich sponsor (probably the one you have doesn’t answer your calls anymore). If you are in this situation, how do you raise Funds to bring your idea to life? I have prepared 5 ways to raise Funding for your Startup.
5 ways to raise Funds for your Startup in Nigeria
Family is Key
As a Nigerian, it’s a real hustle to get money from family, but it becomes easier when you earn their trust (which takes a while by the way). You might also need to show them your business idea, strategies you hope to employ and make sure its achievable with the funds you are requesting for.
There is no shame in begging for assistance from your Family and close relatives at all, do all you have to, you can even call for a family meeting if you have to.
Meet close friends
Your close friends might also be a good means to raise funds for your Startup, but just like your family members, you have to earn their trust. Make sure to 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. In order to get their support you might even guarantee to give them something consequently as the business grows (But make sure you fulfil your promise, in case you need funds again).
Bank of Industry
BOI provides Small, medium and large enterprises, with funds for starting their business; new or existing companies, seeking expansion, modernisation or diversification; creditworthy 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.
Request for funds by;
⏩Write a formal application letter
⏩Completion of BOI’s Questionnaire
⏩Submission of Forms and Questionnaire.
You can visit their website Here
Grants and Angel investors
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 (it’s important to note the difference so that you don’t sell out your company before even starting). To get this funding, all you need to do is to convince these individuals with a very outstanding business proposal or plan as it may be.
Get a Job
If you have tried all the above methods and still no funding (it’s not your Village people, its the economy), your best bet might be to 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 I promise you. You would be an even better CEO if you have had experience as an employee.
When you eventually get the Funding you need and the business starts, please don’t forget to return peoples money. And before using part of the funding to buy that expensive car, remember you still need to continue growing and thriving to make that business work for yourself and your investors.
More Tips on growing the business Coming Soon.