₦airaland Forum

jumper524:
I'm a fresh graduate preparing for my NYSC.

Being a Nairalander I've been able to get an insight on how tough the labour Market is and am not ready to be in the unemployed graduate category.
Over the past few months, I've been able to multi-task families and friends for capital so I can get something doing for the main time pending service call.
I'm 23 with no skill atall a mistake I regret, although I'm good in computer.

I already have a plan of opening a cyber cafe but I've gat little idea on the running cost.
Shop is not a problem for me, also I reside in abuja.
I'll like entrepreneurs in the house to please give me ideas on business I can embark on with 200k or better still give me an overview insight on opening cyber cafe and how much more would be needed.

At some point in their journey, small business owners may see the need to take business loans from banks and other sources. The reason for getting loans may vary from business to business.

While some small business owners consider taking business loans for the purposes of expanding their operation, others may simply just want to increase their working capital. The need to acquire a piece of equipment and to purchase inventory are other known reasons why entrepreneurs seek business loans from time to time.

Getting a loan is good in itself as it can be all your business needs to grow, but it is also an expensive and delicate move. The more loans a business take, the more business debts it incurs overtime. Which is why taking a loan is quite a risky move if you're a small business owner.

This is not to discourage you from getting those necessary funds your business needs, it's just an eye-opener. If you've decided to go for that business loan, ensure you've carefully thought things through and know the answer to this important question - What will my payment schedule be?

There are loads of other questions entrepreneurs should ponder on before taking a business loan, but this is one aspect where small business owners make the error that eventually cripples their business.

When most small business owners in need of a business loan realize they are eligible for the required loan, they make the silly mistake of signing the papers without first considering if the payment schedule for the loan works well in their favor.

These days, lenders have adopted a more frequent payment schedule for every loan they offer. Gone are the days when banks and lenders required yearly payments for loans given out. Lately, monthly payments are even hard to come by as most lenders have resorted to demand daily and weekly payments.

So, if your small business isn't such that gets consistent cash flow all through the month, it would be unwise to take a business loan from a lender who requires you to pay daily or weekly. Be guided.

Regardless of how much finance the bank or a lender offers you, always ensure the payment schedule suits you and won't in any way inconvenience you or ruin your business.

Look into your business. How has it fared in the last six months? Has there been steady flow of income on a daily or weekly basis? If the answer to these questions is NO, then a lender who requires such payment schedule isn't the right pick for you. Get a business loan elsewhere!

It may surprise you to learn that there are loads of options available to you when you're in dire need of a business loan to keep your business running or get it expanded. So don't just take a business loan from the first lender who comes your way, keep searching until you find that lender whose terms and conditions of payment sits well with you.

GbadeTehmy:
Awesome writeup... I will try implementing this i hope to layhold on something tangible.. I will get across to you soonest

asuustrike1:
Has Uniben changed now?

blizard44:
Uniben sits at the top of this pile.

They killed my quest for University Education.

kode12:
I won't be surprised if its University of Ilorin he has been applying to. Honestly I don't understand how that university does its course swapping. Tell him to apply to Uniben, if he doesn't get into Mechanical Engineering, atleast he'll be given something very close.

1. Personal Savings: The best way to fund your business is from your personal savings. Personal savings can be defined as, “The money an individual keeps in a bank or other financial institution for future use.” It is not only the best, but the fastest and easiest means of funding a business, as one does not need consultations or seek approvals to access the fund. Also, unlike loans, there’s no interest attached to this method of funding. As an aspiring entrepreneur, you can grow your personal savings by setting aside a little amount from your monthly take-home, say 10%. That way, you will not have funding issues when you decide it’s time to tow the entrepreneurial path.

2. Family: The second best means of getting funds for your business is from members of your family (parents, brothers, sisters, uncles, aunt and cousins). Business Administrators like myself call this method of funding Love Capital. It is so called because, family members are our loved ones. Like a friend will say, “family is everything.” These category of people can provide you with the money you need to start your business, without having to pay back or at zero interest rate.

3. Friends: Number 3 on my list of the 5 best ways to fund your business is Friends. When I say friends, I mean real friends who desire your progress. There’s a popular maxim where I come from, “a good friend is better than a bad brother.” Another saying goes, “A good friend is the god of a pauper.” The true value of friendship is invaluable. If you’re privileged to have good friends like my humble self, then funding your business will not be a problem. Just ask, and you shall receive the funding you need. But note, to enjoy this, you must be a good friend yourself and you must be trustworthy. Funding from friends can come in the form of a gift or as a zero-interest loan.

4. Grants: One of the best means of funding a business is grants. Unfortunately, a lot of us are not aware of these grant opportunities. What are grants? They are non-repayable funds or products disbursed or given by one party, often a government department, corporation, foundation or trust, to a recipient, often a nonprofit entity, educational institution, business or an individual, as defined by Wikipedia. Tony Elumelu Foundation offers $5,000 (Approximately ₦2,000,000) grant to 1000 African entrepreneurs yearly. Learn more about TEF Foundation on their website, www.tonyelumelufoundation.org

5. Presales: The last on my list is presales, which simply is, receiving money for a product before producing or delivering it. Let me show you an illustration. Mr. P, a retired Naval personnel wants to venture into the business of supplying military hardware to the Nigerian Navy. He does not have the capital to procure and make these products available to the Navy. He writes and submits a proposal to the Chief of Naval Staff. Based on his clean service record, the CNS buys the idea and instructs the Chief of Accounts and Budget to pays him 75% of the contract amount upfront. Mr. P takes this money and orders for the products from a manufacturer in China, with a promise of balancing up at a future date. The Chinese manufacturer produces and ships the hardware directly to the Navy. The Navy pays Mr. P his balance, Mr. P settles the manufacturer and keeps the profit. In summary, Mr. P has succeeded in funding his business through presales.

PalmOilDealer:
Thanks OP, this is really helpful.