Access to fund is one of the major challenges confronting entrepreneurs across the world. It is even worst for start-ups because they don’t have anything apart from juicy ideas to show intending investors in their dreams. Investors on the other hand will likely ask for what the owner of the dream has done to set his dream in motion before they commit their money in such a project. Therefore, it is important to look for alternatives to push your ideas through personal efforts before calling for investors.
The following are alternative sources of funding for entrepreneurs;
• Go into partnership: Many people are skeptical to go into partnership because they believe it ends in legal tussle or quarrel between partners; yes it is true if it is not done properly. When going into partnership, you need to do all the paper works with terms and conditions of the partnership contract clearly spelt out. This should be done by investment lawyers of both partners so as to avoid conflict. Don’t be selfish, if you have a beautiful business idea, you can meet a partner who has the fund and he is ready to sponsor such idea with terms and conditions favourable to both of you.
Finally, before you run to banks for loan, make sure you have explored the aforementioned alternatives because banks’ conditions for loans are not really favourable to entrepreneurs especially in Africa. In Nigeria, interest rate is about 20% to 30% which is ridiculous. The same story is the case of South Africa, Zimbabwe, Uganda, Kenya and others.
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