Sources Of Getting Funds For Your Business Idea In Nigeria
Do you have a brilliant business idea that you want to start up? I presume you must have written a wonderful plan on how best you want to execute your plan or you are at the process of doing just that. It is okay. It is brilliant to want to start up something instead of waiting for the government to do something for you. It takes a lot of nerves to do that. If you are going to succeed in your business, then you will need to be adequately guided. You see, it is one point to have a plan; it is another to find the requisite funds. In fact, it is the one area that everybody gets seriously concerned. A lot of people at this stage quit and their brilliant ideas die with them.
The good news is that your business can be funded. Are you happy? Yea, indeed it can be funded. Remember nothing is impossible. You shall get what you want if are steadfast and you go out to look for it. Your access to information is critical and you are very lucky to be reading this piece because it is going to expose the secrets of funding your business to you and if you already know some of these sources, it will definitely shed more light on them and give you new insight into some of them. I would have loved to get into explaining the reasonshttps://www.entrepreneur.ng/become-a-leader/3-reasons-why-being-broke-will-make-you-a-better-entrepreneur/ why you need fund for starting or executing your brilliant business ideas but that will be a serious waste of time because everybody understands that but what everybody don’t understand is how to get the money. Therefore, we will focus on the sources of getting funds for business ideas. Without wasting a lot of time, we will just go straight to the sources. We sincerely hope you get helped.
Six Sources Of Getting The Funds For Your Business Idea in Nigeria
Your Personal Money
The truth of the situation is that you are the first point of fund generation for your brilliant business ideas execution. Your personal money must be invested first before you think of external help. If you can fund the whole business, then, that will be great. That means you don’t have to bother about repayments. So, stick your savings into the business you want to start, it is very okay to do that. This is only applicable if you have money but it is not impossible to start a business when you are broke. All you need is to have a great business idea, and everything will fall into place.
Your Friends and Your Family:
This is very crucial. The people close to you can help fund your business. This could be in the form giving you a loan which you will pay back later or giving you an outright grant. Either ways, they represent a great source of funding for start ups. Get up today and take your business idea to a friend or a family member, you might not know how generous they can be until you try.
At this point, it becomes more complicated but very feasible and possible. Let’s analyze. If you get money from friends and family, they might give you free as their way of supporting your business or they will give you time to pay back. Most times they don’t request for interests on loans and when they do in extreme cases, the interest rate is usually very small. But in getting loans from corporate bodies and banks, the story is usually different. Very different. You have to pay back within a specific period of time as agreed by the terms and conditions of the loan, you have to pay a huge interest and in some cases, you have to leave collateral that you can lose if anything goes bad.This is okay because you will hopefully meet up with the deadline. You can secure funds using this medium. Most people have actually made it with loans. You can go to the banks and corporate bodies and get loans today for your business. There are different kinds of loans and it is Important to know them.
Short term loan:
This is the loan that lasts from one month to one year.
Medium term Loan:
This lasts from one year to three years.
Long term loan:
This is usually from three years and above.
Government and Cooperatives:
The government can provide a good source of finance or fund for starting your business ideas. There are a lot programmes by different governments that can help you. They can be in the form of subsidy, grants or loans. You can also belong to cooperatives and get subsidized loans to kick start your business.
Angel investors are the people that will give you loans without requesting for payback. They are so many out there seeking for start uppers with viable business ideas so as to invest in them. You have to seek them out. Know what they want and get them into your business. A perfect example of an angel investor in Nigeria today is Tony Elumelu, the owner of Tony Elumelu foundation. He can help you and there are others like that.
Your idea might be very great and you lack the necessary funds. You might see someone who loves the idea and has money and he can partner with you. You discuss the terms and conditions and you are in business.
The above listed sources are not the only sources for funding your business, but within the Nigerian context, they are the major sources and if sought after, can be a huge source of upliftment for you. We wish you all the best. If you have other sources that you think we didn’t cover, we will welcome your contributions.