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How To Raise Funds For A Startup Business In Nigeria 2020: Simple And Fast

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How To Raise Funds For A Startup Business In Nigeria 2020: Simple And Fast

funds for startup business

Raising funds for startup business can be quite simple and fast if you know the best way to go about it. Every day, lots of businesses crash as a result of inadequate funding. There are those that cite the lack of startup funds as their reason for not becoming entrepreneurs. Do you know that you don’t really need money to draft your business proposal or plan? I don’t think so.

Also read: How to grow your business from scratch

You need to understand that your business proposal and plans are essential for your startup development. However, there are people that are in need of funds for a startup business to get off the ground. There is always the search for how to source for funds to start a business in Nigeria. Many people spend a fortune looking for how to raise capital for business.

Well, there are different ways to raise funds for your business, but you have got to be smart and disciplined about it. In this article, I will show you five practical ways to raise funds for a startup business in Nigeria. All you have to do is pay attention and be ready to put in the work needed for this task. The information shared here will help you raise enough capital to drive your startup to success.

It is important to note that having a reliable source of funding for your business is never a guarantee for having a successful business. There are many factors that aggregate to determine the success of any business establishment.

Here Are 5 Practical Ways To Raise Funds For Startup Business

  1. Create your personal savings

Without any doubt, this is practically the best way that you can raise funds for a startup business in Nigeria. As an aspiring entrepreneur or business owner, you must have a personal financial commitment to your business. It must not be big, you can start small. If you fail to have a personal financial commitment to your business, nobody will take you seriously.

If you raise a reasonable sum of money, it will be easier to approach another party for help. It makes no sense when you go to people for funding when you have nothing on your own. When you approach someone to fund your business and you tell the person the amount that you have raised on your own, it gives credibility to your quest and shows your determination. There are platforms that can help you to easily save money for your business startup in Nigeria. We have online savings and investment platforms like SumoTrust, Cowrywise, etc with good interest rates on your savings. SumoTrust pays you between 10-15% interest on your savings with them.

They also have a mission savings account for you to save towards your desired goal. 2020 has just begun and you can start saving as little as #100 every day, weekly or monthly depending on your financial capacity. You will be surprised at the amount of money you must have raised on your own within 6 months. Visit www.sumotrust.com to create your free account and start saving to raise funds for your startup business.

  1. Your family and friends  

Another one of the practical ways to raise funds for your business is through family and friends. Aside from saving up for your business, your friends and family members are the next best option. However, ensure that you already have some personal savings for you to be taken seriously. No one will be willing to invest in you if you can’t even invest in yourself.

For instance, if you need #100,000 to augment your personal savings to fund your startup, you should probably request for #10,000 from 10 people among your family members and friends.

  1. Angel investors

An angel investor is any rich individual that provides capital or funds for startup business in exchange for ownership equity or convertible debt. When you search within your environment, there are people willing to invest in your business if you are willing to part with some equity. You need to find such people and send them your business proposal. Remember that you should elaborate on what you need from them and what they stand to gain in return.

These people are businessmen, not philanthropists; hence the more reason you must present them with an offer they can’t reject. Whatever you do, ensure you live up to your end of the agreement. In business, trust is everything and if you lose it then you have lost everything.

  1. Commercial bank loan

In as much as I dot recommend this particular option, it is undoubtedly one of the ways to raise capital for business. When you need money to start a business, the bank should be your last resort. Anything can go wrong, especially when it is a new startup. In such a case, you will find yourself in a very dire situation with the bank. If you believe that it can work for you, then there is no reason for you not to go for it. But my advice is that you must be careful when applying for business loans from banks.

See: How to build a strong business network

  1. Business grants

In Nigeria, the government and certain organizations like the Tony Elumelu Entrepreneurship Programme (TEEP) give out funds to empower entrepreneurs. Before you can get grants from these establishments, you must have got your business plan in order and have shown a strong desire to succeed.

Conclusion

Have it at the back of your mind that business success does not come overnight, it involves work and money. What this article has done is to help you sort out the money aspect. The work aspect is solely up to you and you alone.

You can leave your thoughts on the subject in the comment box provided below. Thanks.

 

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How to Start Buying from Aliexpress and Make Money

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Are you looking for a good business idea that will bring you some cool cash within a fairly short timeframe? Then you should consider buying and reselling goods (importation) from Aliexpress.

What is Aliexpress? Why Should You Use It?

According to Wikipedia.org, ‘AliExpress is an online retail service based in China owned by the Alibaba Group. Launched in 2010, AliExpress is made up of small businesses in China and other locations like Singapore that offer products to international online buyers. The Company (AliExpress) facilitates small businesses to sell to customers all over the world.

How to Start Buying from Aliexpress and Make Money

How to Start Buying from Aliexpress and Make Money

You might be wondering if it’s safe to buy from Aliexpress. Well, it is very safe to buy from this Chinese site in fact, safer than buying from other e-commerce websites you might know of or that you are used to. This is because in Aliexpress, you are protected no matter what you buy as far as you buy it directly from the site.

Again, why this is so is because, most of Aliexpress suppliers who list their products on the site are legitimate. Hence, it is very safe and reliable to buy from Aliexpress. But there are still a few bad eggs on the site of which you should be aware of and refrain from.

Why Are Products So Cheap In Aliexpress?

A common question asked by many people is, “Why are products so cheap in Aliexpress?” this is a genuine question because many people think that most of the products on Aliexpress are not of high quality because of their low prices but this is very wrong!

Aliexpress products are cheap because most of the merchants selling products on Aliexpress are based in China. Since most of their products are manufactured there (in China) and this is not done by a few companies but hundreds of companies, the market forces significantly bring down the price of goods.

Besides, the cost of production is relatively cheap, China has a lot of resources to deploy easily plus ready technologies which significantly reduce the production cost. Finally, given its huge population statistics (Over 1billion people), the cost of labor is cheap too. When combined these ergonomics help in pulling down the price margins for goods compared to other parts of the world. These and more reasons account for why most of the products made in China are Cheap.

The Two (2) Modes of Buying from Aliexpress.

There are two ways of buying and reselling goods from Aliexpress namely (1) importation business and (2) dropshipping. each of these ha its advantages and disadvantages. In an earlier article, I did an in-depth analysis of what these two (2) forms of buying from Aliexpress entail, their pros and cons. Do well to check the article here.

For more resources on importation business in Nigeria, please read this free guide where I explained this subject matter in detail.

You should also check out my additional guide on how to start dropshipping business in Nigeria.

For this guide, my focus is on both importation business and dropshipping. The section below shows a summary process for buying from Aliexpress and reselling whether you choose importation business or dropshipping or both.

Step-by-Step On How to Start Buying from Aliexpress and Make Money

To start buying from Aliexpress to sell and make profits, here are some tips to help you:

(1) Choose a Specific Niche.

Choose a very targeted group of products that are always in high demand all or nearly all the seasons. This is called the target “general” niche. After choosing a target niche, proceed to choose a good category (that fits your interest) from that niche. For example, you can choose “Ladies’ Wears” as your target niche then choose “Shoes and Bags” as your category.

(2) Compare Shops Offering Products In Your Niche.

If you choose ladies’ wears as your niche, for example, then you should visit some shops in your area (or in your town and/or wherever you want to sell to) to see the kind of ladies’ wears that are trending at the time. Once you’ve known what sells, go to Aliexpress and check if you can find the product there.

If you see the products, begin checking for and consulting or checking with the sellers or suppliers of the products on Aliexpress. While doing this, please make sure that your prospective Aliexpress supplier is reliable. You can check reviews from his previous customers to know if he/she is worth doing business with or not.

(3) Order Samples.

Before you start bulk-buying what you are going to resell, order some samples. This will enable you to know whether the products are good or not. Also, it will open your eyes to the time taken before products are delivered.

(4) Buy the Products, Market It.

After you’ve ordered the product  samples, tested and found them to be market-worthy, the next thing you have to do is to go ahead and start buying the products for sale. However, understand that your brand will not spread if you don’t advertise it effectively.

There are many ways to advertise or market a business. If you make a website to use for your advertorials and marketing, make sure it is customized and that your product’s pictures are of high resolution. You can run Facebook adverts (ads) or contact social media influencers to help you promote your brand.

(5) Focus on the Welfare of Your Customers.

Nothing much to say here than this, “take your customer’s welfare and user experience seriously and reap continuous rewards. Neglect this and sit back to lick the consequence”. That’s self-explanatory enough. Isn’t it?

Conclusion

To start buying from Aliexpress and reselling to the local or international audience, make sure that you buy what is trendy and in high demand else you might end up not getting customers and run into severe loses. Ladies wears and fashion items are good categories to choose because there is always a new trend that sells like hot Shawarma and the demand is always high. I wish you the best of luck in this industry. Thank you for reading.

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