It is obvious that even as an established business, you will still realize that capital is always an issue.
Your business needs a start-up capital that involves the pre-open expenses, initial operating expenses and opening stock.
Here are some guides that would show you how to raise capital for your small business.
How To raise Capital For Your Small Business In Nigeria
1.
Have The Right Mindset
How does having the right mindset relate to how someone would raise
money for his small business in Nigeria? It relates in everything, many
leading entrepreneurs be it Small and Medium Enterprises (SMEs) portray a
mindset of success in whatever business they indulged in,, you would
definitely see it in their success story.
It also applies here on how you could raise capital for your business,
because whether you like it or not, no one can easily give you cash to
startup a business in Nigeria, that’s why there are very few successful
entrepreneurs. These entrepreneurs had a mindset to succeed, so you must
have that first.
2.
Apply For Loans
You just want to start a small business in Nigeria ? Then you have to
apply for loan, applying for loan through a commercial bank in Nigeria
requires you to have a well presented business plan that would attract
the lender of the loan? In most cases some of the lenders turn down the
offers of small businesses, but you just have to keep trying out other
alternatives to fund your business.
You can also apply for government loans and grants.
3.
Get Money From Associations
Associations in this context could be any organization you relate to, it
could even be your church, as long as you would refund the money you
collected from them, since your business is just a startup, they may
encourage you by giving you something to jump start your business.
4.
Ask Friends/Families To Lend You Money
It’s actually a small business you want to start, so you can inform your
friends and families about your plan and if you are lucky, they may
help you, but most of the times they may laugh at you, and some be like
“where does this one think he is going”, then they would quote you
“please borrow me money to start my small business, my foot”, but
whatever result you get, you have to take it in good faith.
5
.Fund Yourself:
At least even if nobody wants to help you, you should be able to help
yourself, it’s your business, start with whatever you have.
Successful entrepreneurs tried to fund their own business at one time
or the other when getting external sources of income failed and it paid
off.
You don’t have to give up simply because you went to your local
commercial bank to ask for loan and turned you off, then you let your
business dreams die, NO it does not have to be so, and you might even go
to your friends and families and even your “RICH” uncle or closest
friends and they may not assist you or they may even be jealous or just
having the mindset that you can never succeed, do not give up.
Gather the little money you have that would be able to make your
business take-off and start from there, with time you will find external
sources of income.
So one of the ways you can realistically raise capital for your small
business in Nigeria, is by funding the small business yourself.
6.
Work For Your Capital
Let’s say you want to start your small business and you have tried to
achieve all that is listed above, you can actually do jobs that would be
able to help you fund you business for the mean time, that’s what I
mean by working for your capital.
Even if you have a 9 to 5 job, you just have to retain it and operate
on that your small business from time to time and when you see that your
small business is gaining grounds, you can quit and enter into the
business full time.
This is smart and you would actually succeed in your business, because
there is a sure source of income. Many business men and women, so even
if you are working in an organization and you have a business plan, you
can work your capital and make sure that your business has all it takes
to stand on its own, not for you to quit and then when you face your
business squarely you begging to see difficulties in getting funds and
then your business crashes. That would be a bad scenario, so you just
have to be patient until you see the limelight of your business.
With these tips , you should be able to raise capital for your small business in Nigeria and grow it to become successful.