Nigeria has always been blessed with a buzzing entrepreneurial spirit. Men & women alike have business ideas that are profitable and can conquer the world. If you run or are looking to start a business in Nigeria, you need to put in a lot of research. Doing this let’s you have a less bumpy ride and to boost your chances of success.
The Nigerian market is ever ripe with opportunities and with a market for almost everything. However in the course of starting a business, running it or/and expanding it, financial issues may come to play.
Knowing the economic situation in the country, it can be difficult for you as a business owner to get the funds you need. Nonetheless, business has to go on and there are different streams from which you can get financing for your business. They include those listed below, this list is not exhaustive as there are other ways to get money for your business.
Angel investors are one of the best sources for attracting funding for your business ideas. An angel investor is someone who has enough money and is willing to invest in your business idea. Look around you and you’re likely to find one. For example, older uncles and aunties that have disposable income, friends of your parents, mentors you look up to etc. Approach them with your idea and its potential earnings or a business plan.
You should make sure you find the right investors who’re interested in the industry /area of business you’re working in. This enables a more relatable and beneficial working relationship.
The angel investors are not just there to give you funds; they’re giving you money in exchange for some ownership equity or shares in your business. In other words, they get to own a part of your business.
So if you come across angel investors in your quest for funding, you’ll want to make sure that you protect yourself and your business. Make sure that your terms are clearly spelt out and understood by all. If you are not willing to part with some equity, let it be clearly known and include your terms of repayment. Consult with your lawyers before taking any step.
Short term finance / Business loans
A number of financial bodies are looking to support businesses because of the important roles they play in the growth of the Nigerian economy. You may approach a financial institution for business financing and if they have the liquidity to satisfy your requirements, they will grant you the funds you’ve requested for.
Things that are of concern to them include your ability to make profit and repay the loan with interest.As well as whether you’re a low risk customer/business.
Afterwards, it is up to you to ensure your business activities are performing.
Grants are non-repayable funds given by grant givers, regularly by government, associations or trust, to a beneficiary. Unlike business loans, you don’t need to repay grants, so there’s no worry over interest rates or refinancing. You just need to be qualified for it.
Most businesses which qualify are those who are able to show convincing proof that they are viable. You should have an exceptional business plan showing ways of making profit, addressing youth unemployment and capacity building.
Getting finance for business involves careful planning. A well thought-out business plan is more likely to attract funding than one that’s not. When you eventually get funding, you can’t afford to disappoint people who have invested in you. You have to continue growing and thriving to make profit and for your business to work for them and yourself too.