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How To Get Funds For Your Small Business - Business - Nairaland

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How To Get Funds For Your Small Business by Ravon: 8:20am On Sep 18
No doubt, startups can be very exciting, but the challenge of raising capital for it to get some footing can be discouraging as building a real business requires capital. But for most startups, what they have is only an idea they feel is marketable. For some, they have designed a business model already and just cannot stop dreaming about this idea of theirs and how it will blossom into something big. Another thing is, not all businesses are a great fit for angel investors or venture capital funding. Sometimes your startup is really good, but getting to convince investors is another hurdle, because like it or not, looking for investors is an investment in itself, and your first thought afterwards is to get some money to build your idea into reality, and what is on your mind is… Crowdfunding!?

Okay… That works, but it is not always smooth. It may happen that you actually got funds, but only a fraction of it. This is not to say there are way better options; rather, it is to offer other alternatives to go alongside your crowdfunding, or to just ignore it totally and face the ones we will be listing, for there are a couple of ways of actually getting funds for your small business that you may never have considered, or even heard of, like…:

NETWORKING

Networking should really be the first option people with a startup should consider before any other, and the reasons are these: it will allow you to put out your business in a less formal and a very organic fashion. Going out and meeting people within the local startup and community of investors can be a great way of stumbling into someone who will pick interest in your idea or what you have already set up but are lacking funds to grow. Gatherings like these are good for promoting your business. An example is the Startup Grind – a global community of entrepreneurs, designed to educate, inspire, and connect with one another. Superficially, it may seem quite off, but at the end of the day, you are selling your business without losing a dime. Another thing is, if they seem to be interested in your startup, they will keep the conversation going. It is now left for you to market yourself the best way you can. While this is an art in itself, when done right, investors will be more likely to consider your business.

The best way to go about this is not to meet them and start talking about your business and begging them to invest in it; you should consider playing with their psyche instead, like first asking them for some advice. This way, you are able to build a relationship with them which will grow into a more willingness to invest in your startup. Asking for advice gives them a chance to point out some visible flaws in your business and also shows that you value their thoughts.

You just cannot do without networking, because in the long run, you will be doing it without even knowing. Flopping here is not the end, there are still other options.

PRIVATE FOUNDATIONS/CONTESTS

There are a few contests out there where winners get funds for their businesses. These contests allow entrants to submit a business plan and the best plan(s) submitted to get to win some prizes, which among other things include funding their startup. Also, most private foundations do not fund startups that are profit-oriented; some do offer a grant if a startup is targeted to empower women and youths. If your startup is one which engages in social activism, your chance of getting funded by these foundations will be greater. A leading private foundation offering grants yearly to startups and entrepreneurs is the Tony Elumelu Foundation which was founded in 2010 by an entrepreneur, investor and philanthropist called Tony Elumelu. This organization is very passionate about Africa’s economic development. So far, over 7000 entrepreneurs and businesses have been empowered through their grants.

THE GOVERNMENT

You are probably asking yourself why the government is listed. It is because governments at various levels put in capital into growing businesses. No doubt, if the system was transparent, more people would see this as a viable option. Nevertheless, we do not have to count it out. Truth is, it is pretty hard for a startup to secure funds through the government, and it is still as tougher for establishments which have stood the test of time.

Before picking this option, it is important you ask yourself if the startup is one that will create jobs and grow the economy, and if it is very clear it will, the government will be more likely to consider it.

CHAMBERS OF COMMERCE

Members of Chambers of Commerce get to enjoy loans given to them at a very low-interest rate. You can take advantage of it to grow your startup. These chambers are made up of business owners, and to benefit from these grants, one must be an active member. In Lagos, there is the Lagos Chamber of Commerce and Industry which has been promoting and protecting the interests of members and the business community at large. They have also created and facilitated commercial and industrial opportunities in Lagos State. Becoming a member is quite tasking and demanding as requirements are a provision of Certificate of Incorporation, a valid office address, and financers among other things.

ONLINE LOAN SERVICES

As much as there are many platforms to get loans from, none is as transparent and fully secured with friendly rates as Fundall – a platform of investors for investors. In fact, and with the exception of Fundall and a few others, online loan platforms are centred on personal grants than for business development. And even when they support Micro-Businesses, the procedure is not as smooth as they put out.

In the digital world, we have lots of opportunities right in our palms. Startups that have founders that are young and smart will be the biggest winners, as access to loans to fund their businesses and goals will be available for them all day, all week and all year round.

On Fundall, there is a specific loan for startups (Small and Medium Enterprises to be precise), but it is important you know about the other options like ‘AgileCash’ and ‘Payday Loan’ as well. AgileCash lets you borrow money (up to ₦30,000) within a few minutes, and without collateral. Payday Loan is, particularly for salary earners. They can access loans to the tune of ₦2,000,000, still without collateral, and at a very low-interest rate.

Our concern, however, is on loans for startups, and that is covered by ‘SME Loans’. Fundall allows Small and Medium Enterprises access to loans to as high as ₦2,000,000 – an opportunity for them to kickoff, sustain and grow their business while still generating more income. If your target as a startup is simply to get financial support to achieve your business goals, then Fundall will be your best bet.

In the meantime, you have to thoroughly investigate these five alternative sources of business capital. Each has its own unique challenges, but succeeding will be well worth the effort.

By the way, for most investors (it will do you well to get this right before going on an exploit for the above options) it is better if you approach them with your results before they consider your startup. Getting to show results first can be quite difficult, because as a growing business, you first need money to get customers, and it is through your customers that you get money. Therefore, it is worth every effort to first acquire customers or users before you approach an investor, instead of seeking funds first before getting customers. This is very important as it is far easier getting investments on good terms (particularly from non-institutional investors) if your startup has some traction and customer base first. Most investors like to see some proof that your idea or business has potential, and the best proof is having customers that are real and also paying. Because actually demonstrating that people like and are even patronizing your business is going to be one of your biggest assets when it comes to attracting investors.

SOURCE: https://brandspurng.com/2019/09/17/how-to-get-funds-for-your-small-business/

5 Likes 2 Shares

Re: How To Get Funds For Your Small Business by shuttox: 8:50am On Sep 18
Goverment cannot help

It's so difficult to raise funds in Nigeria

4 Likes 1 Share

Re: How To Get Funds For Your Small Business by BoboKush(m): 8:50am On Sep 18
Country hard o... And govt no give a F
Re: How To Get Funds For Your Small Business by jaymejate(m): 8:50am On Sep 18
All thses things de work?

3 Likes

Re: How To Get Funds For Your Small Business by investigator007: 8:52am On Sep 18
Is this for sure?

1 Like

Re: How To Get Funds For Your Small Business by millionboi2: 8:52am On Sep 18
Useless post


D mod dat brought this to frontpage need to b qtn

2 Likes

Re: How To Get Funds For Your Small Business by Justdare: 8:52am On Sep 18
jaymejate:
All thses things de work?

Of course they all work, unfortunately not in my dear country.

@ OP, If you must copy articles, pls copy ones that are relevant to your clime.

3 Likes

Re: How To Get Funds For Your Small Business by Ekakamba: 8:53am On Sep 18
Same googoo gaga.

As if networking with the right people is as easy as doing vigil in a club.
Re: How To Get Funds For Your Small Business by fleksy: 8:56am On Sep 18
Get quick loans here

Re: How To Get Funds For Your Small Business by mercyvivv(f): 9:04am On Sep 18
Nothing different from what we already know.

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Re: How To Get Funds For Your Small Business by tayecrypto: 9:04am On Sep 18
smiley
Re: How To Get Funds For Your Small Business by maybachmusic(m): 9:20am On Sep 18
taking a loan in nigeria is not easy

remember taking 1M from renmoney

i had just few late repayments and even made enough money to liquidate the loan in less than10 weeks

cheesy cheesy

they were angry i liquidated the loan, they want me to repay 440k on 1m naira in a year

after paying 44k a week

if not that my biz was solid, such returns will roast any startup cheesy

11 Likes

Re: How To Get Funds For Your Small Business by bytementor: 9:21am On Sep 18
Getting loans these days are becoming easier, hope paying back will also be easy.

1 Like 1 Share

Re: How To Get Funds For Your Small Business by sylve11: 9:38am On Sep 18
shuttox:
Goverment cannot help

It's so difficult to raise funds in Nigeria

When black man want to start business, na big wahala
Na big wahala, he go run orisirisi running
When he start the business nko? Another wahala
Another wahala, he go beg orisirisi begging
To settle wahala, na to start wahala again
To start wahala again you go fall orisirisi falling.............. sad cool

1 Like

Re: How To Get Funds For Your Small Business by Ajibade123(m): 9:55am On Sep 18
see 16 ways to overcome financial challenge in your business https://explicitsuccess.com/how-to-overcome-financial-problems-in-business/
Re: How To Get Funds For Your Small Business by Sirseedorf(m): 10:21am On Sep 18
Many people with genuine business idea but no capital to start with.


Instead of exploiting ones idea to contribute to the society, never o, people just dying with their idea in Nigeria ..



in fact am tired already.

I wish I can have money, good job to earn money to source for my business capital..
Re: How To Get Funds For Your Small Business by timsucess(m): 10:39am On Sep 18
Sirseedorf:
Many people with genuine business idea but no capital to start with.


Instead of exploiting ones idea to contribute to the society, never o, people just dying with their idea in Nigeria ..



in fact am tired already.

I wish I can have money, good job to earn money to source for my business capital..
Why can't we go into partnership
Maybe we can achieve better
Re: How To Get Funds For Your Small Business by kaptaneSaka(m): 10:55am On Sep 18
jaymejate:
All thses things de work?
My brother, e no they work joor, government worst...

1 Like

Re: How To Get Funds For Your Small Business by spafu(m): 11:03am On Sep 18
Ok
Re: How To Get Funds For Your Small Business by Sirseedorf(m): 11:25am On Sep 18
@timsucess

but you don't know my kind of business.
moreover partnership has many problems.
Re: How To Get Funds For Your Small Business by renewable1(m): 12:05pm On Sep 18
Nice one



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Re: How To Get Funds For Your Small Business by timsucess(m): 12:13pm On Sep 18
Sirseedorf:
@timsucess


but you don't know my kind of business.

moreover partnership has many problems.

I don't know your kind of business
Partnership has problems but it has never made people to stop partnering in bus
Re: How To Get Funds For Your Small Business by Anekeu(m): 12:31pm On Sep 18
let me understand something. What's the use of CBN and Nigeria Government. We have enough money that could support every citizen in this country. Abi Nigeria doesn't produce currencies?
Re: How To Get Funds For Your Small Business by PapaAdanna: 1:34pm On Sep 18
The worst is this online loan outfits

Never go there

1 Like

Re: How To Get Funds For Your Small Business by Sirseedorf(m): 1:36pm On Sep 18
@timsucess

My preferred business is Accessories, like earpieces, phone casing, charger etc.


So what's your opinion?

sorry for quoting without mentioning you, am using freebasics .
Re: How To Get Funds For Your Small Business by Riscawendy(f): 2:33pm On Sep 18
I don't think is right to borrow to start a business, few ways to get money include
1- savings; save money small small until is enough.
2- Ask your family for money
3-Ask your friends for help.
4 look out for NGOs that supports people in business.

1 Like

Re: How To Get Funds For Your Small Business by CheapDataGuy: 2:36pm On Sep 18
Sirseedorf:
@timsucess


but you don't know my kind of business.

moreover partnership has many problems.

Think well before you accept any partnership ooo.

Some will end up hijacking your business oo

2 Likes

Re: How To Get Funds For Your Small Business by CheapDataGuy: 2:37pm On Sep 18
Riscawendy:
I don't think is right to borrow to start a business, few ways to get money include
1- savings; save money small small until is enough.
2- Ask your family for money
3-Ask your friends for help.
4 look out for NGOs that supports people in business.


Do you know of anyNGo??

1 Like

Re: How To Get Funds For Your Small Business by Sirseedorf(m): 4:16pm On Sep 18
@CheapDataGuy



Thanks man
Re: How To Get Funds For Your Small Business by DaCharis2016: 4:38pm On Sep 18
I have a business idea, and I need help on how to go about it. What are the steps I need to take to transform it to a brand, coy or startup?
Re: How To Get Funds For Your Small Business by Moboj: 4:59pm On Sep 18
Hello cheesy
I get OP's points
It works for some and doesn't work for many the most effective is still the one from Family and Friends
An average Nigerian youth is a compact of business idea's, sometimes it wants to make you go crazy
You have idea's that can solve problems but raising finances to make it work isn't easy
MOBOJ SNAILS is a not soo young company still under the "startup phase" because of lack of appropriate fundings
Trust me OP if fundings are been distributed well we won't even have to wait for the government to solve the unemployment problems we've been shouting about since

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