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Why You Should Avoid Venture Capitalists And Angel Investors In Your Business

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To start with, what are the marked differences between Venture Capitalists and Angel Investors? This is a very good question to ask and get clarification to before investing in any business and finding out which one of them is a good fit for you. This is because if you go into a wrong direction in choosing who to invest with, you will not only waste your time but also lose money.

Bad investment or business decisions can sink your company. Like Evan Carmichael said, raising money for business is like getting married, you have to really pick who you bring on. So it’s imperative to tread carefully and do your homework very well before going out to source funds for your business. That being said, what are the marked differences between Angel Investor and Venture Capitalist?

Why You Should Avoid Venture Capitalists And Angel Investors In Your Business

Why You Should Avoid Venture Capitalists And Angel Investors In Your Business

Angel Investor Explained

An Angel investor is mainly an individual or a professional who takes or likes investing in companies as their main business. It doesn’t mean one have to be a professional before becoming an angel investor because many wealthy people invest in many businesses they don’t even know they are about. The goal is to invest so as to get a Return on Investment in large amounts sooner or later. Angel investors are all over the map and it’s important to get the one with not just the money but with connections and more to do table.

Angel investors have a high tolerance for risk because they are looking for a longer investment prepayment time like 5years and above before they get their money back. When one invests in like less or about half a million dollars, then that’s angel investor territory. They can be friends and family or come in any form.

Venture Capitalist Explained

For Venture Capitalist (VC), the startup fund is half a million and more. Venture Capitalist works with you when they see a lot of opportunity in the business because they are investing a lot. Typically VC doesn’t like startup companies. What VC likes to see is that you have done a lot of work in starting the business before investing large funds in it to keep the company going. VCs are professionals and they pull money because they have people that give them money and are in charge of going out to invest it. They typically focus on specific areas. VC are looking to make 30% a year as return on investment; so they focus on companies they believe has the potential and can give them what they want.

There are some companies that a VC can never invest in like Construction Company because it’s hard to scale the Return on Investment (ROI) in this sector. This type of investment is mostly done by angel investor because they look forward to making ROI in the long term.

These are the roles of both Angel investors and Venture capitalist. They both help fund a business idea and make a huge profit from it.

Check: Venture Capitalist Firms in Nigeria You Should Trust

The Disadvantages of Both Venture Capitalists and Angel Investors

In as much as they are needed for a startup company and business idea, one needs to be very careful and avoid them if possible.

(1) 30% and above of the Company’s Profit Goes to VCs, VC own biggest Shares, Can Influence Management Decisions

For Venture capitalist, they invest a lot of money in one’s idea and so they are entitled to 30% and above of the company’s profit which the real business owner might be reluctant to pay. In Venture Capitalist, they own the biggest shares in one’s company and therefore can dictate whatever they feel is right to them to the real owner of the business. As a business owner and idea bringer, someone telling you what to do with your company and how to run it should be the last thing you will be expecting. This is one of the reasons why most business owners avoid Venture Capitalists.

(2) Business Owner Risks being ousted From His/her Own Company

One of the most brutal things that can happen to a business owner that invest through Venture Capitalist is been ousted from his/her own company. A good example is Lucious in the series movie, “Empire.”  Empire was started by Lucious Lyon and after attracting investors, there was a takeover of the company from those major investors. An idea of Lucious Lyon and being nurtured from scratch was taken away from him by investors. This is the most devastating act on how one can lose a company he built with sweat from the scratch and the more reason one should be careful to invest with Venture Capitalist(s).

(3) Continuous Monitoring and Reporting of One’s Business

Furthermore, Venture Capitalist keeps track of their investments in a company and is most of the time included as a part of the Board of Directors of the Company. The person will be in all meetings and will be reporting back to the Venture Capitalist Company all the ideas a business owner presented or proposes to work on. If the Venture Capitalist finds it unsuitable, they can rule against the idea. All these rules seem very hard to follow when you are the owner of a business. It’s basically like you are being employed by the venture capitalist and have little or no say on how to grow your own business.

(4) Business Stands the Chance of Being Sold

Lastly, one of the reasons to avoid Venture Capitalist and Angel Investor is that they can at any time sell the company when they feel it has outlived its usefulness. Imagine an idea you think you will pass to your generation to run and become a household business being sold by an Angel Investor or Venture Capitaist because they have large amount of money invested in it? Although the owner will receive a large amount of money from the profit of the sold company it’s just a mere compensation on what should have been a global and household company. These and more are some of the main reasons why one should try as much as possible to avoid Venture Capitalists and Angel Investors.

The fairer side of things is to use Angel Investor. Since it’s not a firm or a company but an individual who can be a family or a friend or an ex-entrepreneur, it’s easy to present your idea to an angel investor and if interested, they become a silent partner. Most times, Angel investor will not try to steal your ideas and make it theirs or try to do hostile takeover. So it’s safer than a Venture Capitalist. Although, Angel Investor can be a better version but still, it’s the same with or closely related to Venture Capitalist. The business owner’s idea is still being shared and is at risk of being sold or broadcasted. If the business had kick-started and is later sold, the profit would be split in both ways and sometimes the owner gets a lesser amount.

All this can be avoided so as to have control over your own company and run it the way you like. You can get other ideas on funding for your business here

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Ekemini Ekpo is a professional writer, blogger, and internet marketer. He is passionate about engineering, business, investment, entrepreneurship, finance, and personal development. When he is not managing web projects, he handles academic research writing and data analysis for individuals and organizations.

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How to Finance Your Education: The Best Ways to Pay for College

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How to Finance Your Education: The Best Ways to Pay for College

With the cost of college rising, it’s hard to figure out how you can afford your education without going into debt. We want to show you some ways that may be able to help with financing your education. This article provides the best ways for how students can finance their education.

Practical Ways to Finance Your Education

Local Scholarships

There are a few practical ways to finance your education, and one of them is through local scholarships. Local scholarships are usually offered by businesses, civic organizations, and religious groups.

They tend to be smaller in amount than national scholarships, but they can still provide a significant amount of financial assistance. To find local scholarships, you can search online or ask your school’s financial aid office for a list of resources.

Financial Aid Appeals

Colleges are not static institutions and they often have to recognize changing economic conditions. This may mean that a student’s financial aid package needs to be adjusted. A financial aid appeal is an option for students who have had a recent change in their financial situation, such as the loss of a job or unexpected medical bills.

If you have been denied financial aid, you have the right to appeal the decision. Here are a few tips on how to appeal:

  • Gather all of the documentation that you will need to support your case. This may include tax returns, bank statements, pay stubs, and anything else that can help prove your financial need.
  • Write a letter to the financial aid office explaining your situation and why you believe you should receive aid.
  • Include a copy of your most recent tax return and any other supporting documentation.
  • Be polite and professional in all correspondence with the financial aid office.

If you follow these tips, you will give yourself the best chance possible of having your financial aid appeal approved.

Employer Tuition Assistance

Employer tuition assistance is one of the most popular ways to finance your education. Many employers offer some form of tuition assistance, and it can be a great way to get your education paid for. Employer tuition assistance can come in the form of tuition reimbursement, tuition discounts, or other types of financial aid.

Save money ahead of time with a 529 plan

One of the best ways to finance your education is to start saving money ahead of time with a 529 plan. A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education expenses. With a 529 plan, you can save money for your own future education or the education of a family member, such as a child or grandchild.

There are two types of 529 plans: prepaid tuition plans and college savings plans. With a prepaid tuition plan, you purchase tuition credits at today’s prices to use at a participating college or university in the future. With a college savings plan, you invest in a portfolio of investment options, which can grow over time.

529 plans are sponsored by states, state agencies, or educational institutions, and are managed by investment companies. There are many different 529 plans to choose from, so it’s important to compare plans and find one that best suits your needs.

If you’re looking for a way to finance your education, a 529 plan is a great option. Start saving now and you’ll be on your way to a bright future.

Consider a less-expensive school

There are a number of practical ways to finance your education. One option is to consider a less-expensive school. This can be a good option if you are looking to save money on tuition and other associated costs. Another option is to look for scholarships and grants that can help you cover the costs of your education.

There are also a number of loan options available, both private and federal. You can also look into work-study programs and other ways to earn money to help pay for your education. Whatever route you decide to take, there are a number of options available to help you finance your education.

Consider private student loans

You may be able to finance your education through private student loans. Some private lenders offer loans specifically for students attending certain schools or pursuing certain majors. You may also be able to get a private loan if you have a cosigner.

Get a job

There are a few practical ways to finance your education, and one of them is to get a job. You can work part-time or full-time, and use your earnings to help pay for your schooling.

This can be a great way to gain work experience in your field of interest, and also reduce the amount of debt you have when you finish your education. You may also be able to get scholarships or grants from your employer that can help with your schooling costs.

Apply for internships

There are a number of practical ways to finance your education. One way is to apply for internships. Internships can provide you with the opportunity to gain valuable work experience while also earning money to help pay for your education. Another way to finance your education is to apply for scholarships.

There are a number of scholarships available to students who are willing to put in the time to search for them. Finally, you can also take out loans to help pay for your education. Loans should be considered a last resort, as they will need to be repaid with interest. However, if you are unable to find other ways to finance your education, taking out a loan may be your best option.

Spend Wisely

There’s no doubt that college is expensive. But there are ways to finance your education without going into debt. Here are a few tips:

  • Start with scholarships and grants. There are many sources of financial aid that don’t have to be repaid.
  • Work while you’re in school. You can earn money to help pay for your education while getting valuable experience at the same time.
  • Be smart about your borrowing. If you do need to take out loans, make sure you understand the terms and only borrow what you need.

By following these tips, you can finance your education without putting yourself in a difficult financial situation.

Conclusion

Paying for college can be a challenge, but there are many options available to help finance your education. Federal and state grants, scholarships, and student loans are all great ways to pay for college.

You can also look into private loans, work-study programs, and military benefits. Talk to your financial aid advisor to explore all of your options and find the best way to finance your education.

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Basic Steps And Requirements For Starting A Dredging Business In Nigeria

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Dredging has to do with the mechanical excavation of sand, gravel, mud and other substances from the bottom of a water body such as a river, stream, creek, lagoon etc. to do that, you need a vessel known as a dredger.

The need for more buildings and other physical structures has made the market for dredging in Nigeria to become a much sought-after one. Of course, there will always be the need to build or construct. So, dredging never dies.

Aside from the construction of new buildings or roads, etc., dredging products such as sand, gravel, rocks, and pebbles are also used to reclaim swampy areas and for the production of construction materials.

Basic Steps And Requirements For Starting A Dredging Business In Nigeria

Basic Steps And Requirements For Starting A Dredging Business In Nigeria

How Does Dredging Work?

Some dredgers are water-powered, and these cuts and sucks up the dredged material, like sand, from the bottom of the waterway by a method which involves a stepping stool that is mounted on the cutter head passing the material via a suction pipe and this sucked via a suction pump via a drifting pipeline up to the shore. When it arrives on the shore, at the dump, is it moved using tipper to the sub-dump where it is piled up, ready for sale or use.

Opportunities Available in dredging commercial enterprise

There are plenty options in the dredging business. Let’s look at some of them below:

1) Dredging:

  1. Channelization of river
  2. Fabrication of dredger
  3. Managing the dredge team
  4. Reclamation and urban renewal
  5. Safety of a dredger
  6. Stockpiles and profits

2) Supply of sand to numerous locations

3) Sand search

4) Environmental impact assessment

5) Hydrographic survey

6) Leasing of dredging workplace tools such as:

  1. Dredger
  2. Excavator
  3. Low bed
  4. Payloader
  5. Swamp buggy

Basics Steps To Starting Dredging Business In Nigeria

Among the many uses of dredging, its use for the building of houses seems to be the most outstanding. Housing, of course, is one of the most basic needs of man. He can’t just do without it, just like food and clothing. Before the advent of the present technologies in building construction, man has always experimented with several materials to meet his housing needs. This ranges from mud, sand and rock, all in an effort to withstand the elements. With time, however, in a bid to get the much-needed solidness and strength for buildings, other materials have been introduced to building technology such as steel and glass.

Given the alarming shortage of residential and commercial buildings in the country, therefore, there has been much interest in the sand dredging industry in Nigeria, all in a bid to cater for the housing needs of Nigerians. Sand dredging is vital to keep the pace with building of homes and offices as well as industrial layouts in all over the country. Therefore, going into it is a great way to earn a decent income.

Kinds Of Dredgers To Buy

Two popular kinds of dredgers are available in the market. They include

  1. The discontinuous
  2. The persistent

The discontinuous dredger burrows and excavates the heap while the persistent dredger burrows consistently, raising and also transporting the dredged materials at the same time.

Types Of Dredgers To Go For

If you wish to buy dredger in Nigeria, go for the types manufactured by IHC as well as ELLICOT. There are more solid, sturdy and durable, although a bit expensive. China-made dredgers are not very strong, although less expensive.

Types Of Dredging Businesses To Do

There is hardly a part of Nigeria where dredging business does not thrive. However, the riverine areas have more market for the business. however, dredging business in Nigeria may be dissected into the following parts or classification systems:

  1. Class A —Dredging Firms only
  2. Class B — for Only Dredging and sand dealer as well as;
  3. Class C – Manual dredgers as alone

Class A – Dredging Firms Only

  1. Application for dredging routed to the Honorable Commissioner Ministry of Waterfront Infrastructure Development.
  2. Installment of the use charge of N50,000 [fifty thousand Naira only] Provides point by point depiction of proposed dredging area.
  3. Provision of the Environmental Impact Analysis Report.
  4. Provide Hydrographic review.
  5. Bathymetric review of the proposed area.
  6. Duplicates of current duty freedom authentication.
  7. An endorsement will be liable to the installment of the accompanying charges:

(an) (i) Payment of the total of N1,000,000.00 (One million Naira) per annum.

(ii) Proof of Ownership or Access to Portable Barges

(b) (i) Payment of the total of N750,000.00 (Seven Hundred and fifty thousand Naira) per annum

(c) (i) Payment of the entirety of N500,000.00 (Five Hundred Thousand Naira) per annum.

Classification B – Dredging/Sand Sellers Only

  1. Application for dredging routed to the Honorable Commissioner, Ministry of Waterfront Infrastructure Development.
  2. Installment of utilization expense of N50,000.00 [Bank Draft] Provide point by point portrayal of proposed dredging area.
  3. Provide the Environmental Impact Analysis report.
  4. Provide hydrographic study.
  5. Bathymetric study of the proposed area.
  6. Duplicates of current expense leeway authentication.
  7. An endorsement will be liable to the installment of the aggregate of the accompanying expenses.

(i) installment of the entirety of N1, 000,000.00[One million Naira].

(ii) Proof of possession or access to convenient freight boats

(b) Payment of the entirety of N750,000:00 (Seven Hundred and fifty thousand Naira) per annum.

(c) Payment of the entirety of N500,000:00 (Five Hundred Thousand Naira) per annum.

Classification C – Manual dredgers as it were

  1. Application for dredging routed to the Honorable Commissioner, Ministry of Waterfront Infrastructure Development.
  2. Installment of utilization expense of N50,000.00 [Bank Draft] Provide point by point portrayal of proposed dredging area.
  3. Verification of responsibility for Edge review and Ecological Impact Analysis (EIA).
  4. Provide an account of dredging procedure to be embraced.

The endorsement will be subjected to the installment of the accompanying expenses:

(i) Payment of the total of N200, 000:00 (Two Hundred Thousand Naira) per annum.

(ii) Proof of access to Portable Barges.

(iii) Payment of the total of N100, 000:00 [One Hundred Thousand Naira) per annum.

(c) Payment of the total of N50, 000:00 (Fifty Thousand Naira) per annum.

 

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20 Lucrative Small Businesses In Nigeria You Can Start Now

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Small businesses have always existed in Nigeria and are commonly operated in the streets. These businesses have catered to the immediate needs of many as they are easily accessible, hence the increase in the number of small business owners in the country. For many who are having a hard time deciding which to invest in, the list below will be of great help.

20 Lucrative Small Businesses In Nigeria You Can Start Now

20 Lucrative Small Businesses In Nigeria You Can Start Now

1.      POULTRY FARMING:

In Nigeria today, the amount of protein consumed daily is unimaginable, this makes poultry farming a very profitable business to invest in.  Poultry products like eggs, birds are consumed on a daily basis in homes, restaurant businesses etc. Therefore, investing in this business has a good margin for profitability and the best part is that you can start small.

2.      FISH FARMING:

For fish farming, you will need to equip yourself with the right information on how to properly build a fish farm so as to avoid losses. Types of equipment needed are fish ponds, a good supply of water and good drainage system before you proceed to get your fingerlings which will be nursed into the mature fish.

3.      SNAIL REARING:

Snail rearing is another business you can venture into. It requires less capital and snails reproduce at a fast rate. Snails can be reared in homes as they do not smell and are also in high demand in Nigeria.

4.      CROP FARMING:

There are many things that can be done with an unused land and one of them is crop farming. This can be done either on a small scale or on a commercial scale. The population in Nigeria makes farming a profitable investment. Rice, Cassava, yams, maize and vegetables are examples of crops that can be planted because they are in constant demand.

5.      RESTAURANTS:

Restaurants will continue to exist since not everyone can afford to patronize fast foods. As food is an essential for everyone, this business has a tendency to thrive. Bearing in mind that it is accompanied by its own unique stress but with good hands, this can be managed.

6.      CATERING:

Catering is also centered on food. Caterers exist because not everyone has the time to prepare meals for their events. This business is usually done on a contract basis and when handled with professionalism promises lifetime customers irrespective of how much you charge.

7.      CAR WASH:

The basic needs of this business are a very accessible location, a good supply of water, car washing equipment and a good support team.

8.     LAUNDRY SERVICES:

To run my service, you will need a reliable source of electricity supply and other equipment like a washing machine, dryer and pressing irons.

The ability to satisfy your clients will determine how much profits you can turn in.

9.      SOAP MAKING:

Just like food, soap is also in high demand in homes, offices, etc. Get the right knowledge, equipment, excellent packaging and strategic marketing, and you are all set.

10. HAIR AND BEAUTY SALONS:

As long as there are people, there will be salons. Everyone desires to look good and this boost the hair and beauty business. Acquire the skill, set up your shop and let people know about your business.

11. TAILORING AND FASHION DESIGN:

Fashion design requires skill and creativity. You can start small and build your brand with time. Build good relationships with your clients, offer quality service and this can earn you referrals as well as return customers.

12. SALE OF SECOND ITEMS:

Majority of the population in Nigeria buy second-hand clothes, shoes, curtains,  bed sheets etc. which makes this business a very profitable one. You can start with a bale and expand with time.

13. EVENT PLANNING:

Every event requires a planner either professionally or not. Event planners help ease the stress on the client by coordinating events from start to finish. With the right information, software and expertise you can build a good reputation as an event planner.

14. SALE OF ICE BLOCKS:

For areas where the power supply is low, ice block business is a good source of income. Ice blocks are needed on a daily basis by sellers of drinks.

15. TUTORING:

With the current emphasis on vocational training, Parents are in need of tutors to coach their children in subjects and arts like acting, dancing, singing and creative writing. This is an opportunity for everyone with these skills to earn money while instilling knowledge.

16. PARTY EQUIPMENT RENTALS:

This business is capital intensive as you will need to acquire the materials like canopies, chairs, drums etc. This business can be run from the comfort of your home.

17. SUPPLYING AND SALE OF FIREWOOD:

On a daily basis, firewood is used in Nigeria, either by caterers, restaurant business owners etc. Starting a firewood supply business can yield you good profits.

18. SNACKS AND COCKTAILS:

Little drops they say makes a mighty ocean, you can make snacks like puff-puff, bread, cake, meat pie etc. with drinks like zobo and pineapple drink for sale in areas like schools, offices etc. and earn some money daily.

19. OFFICE SUPPLIES:

For workers who are unable to shop for their office needs, you can be the middleman bringing their needs to their doorstep at fair prices.

20. WEBSITE DESIGNING:

Many businesses are moving with the tide and going digital which has led to a demand for web designers. You can acquire the skill and source for clients in need of this service. The internet is a good place to start.

Welcome on board to entrepreneur.ng

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