One of the major problems Aspiring and Emerging Entrepreneur faces in Nigeria especially, is capital. I’m sure this is the same with most African countries. People reading this blog right now, All over Africa will agree with me.
This single factor has sent so many wonderful business ideas to the drain, it has crushed so many entrepreneurs dreams and hopes.
The information you will be accessing right now is priceless- its show you how to source for funds for your business. I am going to take you through 18 different ways to Source funding ,for Aspiring and Emerging entrepreneurs in Nigeria and Africa at large.
1. Startup Financing- I call it the ”seed capital”. Get your business off the ground with cash from several startup sources .I.e if your an employee you can save towards starting up your own business.
2. Equipment Leasing- Short on cash, but need new equipment to grow? Lease what you know you don’t necessary need, and stop waiting till you have enough money for brand new equipments. You can start up by leasing .
3. Community Development Financial Institutions (CDFIs)-So you’re not “bankable” according to traditional rules ,your community may still have resources to help fund your business.
4. Micro-loans- When you need only a little cash to grow, it’s time to check into micro-loans , walk into any of the micro finance banks to access their microloans.
5. Asset-Based Loans- Use your assets like accounts receivable, inventory to help you land funding.
6. Bank-Term Loans- Go with old reliable, and get a business loan from the bank.
7. SME’s -Guaranteed Loans The SME’s got your back. With an SME -guaranteed loan, they’ll guarantee as much as 80 percent of the principle needed .
8. Private Loan Guarantees-If you’re at an early stage in starting up your business,and the bank is ignoring your pleas, what do you do?. Find an investor to guarantee your loan.
9. Fixed asset Loans- If you’re buying a fixed-asset like land, buildings or long-term equipment, look into getting a Fixed asset Loan.
10. Royalty Financing- Got a product that will bring in the cash? I.e maybe you have a music album or you have written a book etc Use it to get a loan based on your future sales.
11. Fed Govt Grant YouWin’
YouWin’-licensed by the FGN to give grants based on inventive and innovative business ideas in Nigeria.
12. Angel Investors- These individual Venture Capitalist investors seem like they are from heaven, but be prepared to give up a chunk of your company for funding. Its better than not even starting the company at all.
13. Business Incubators- “Nest” is one of these entrepreneurial hotbeds, and you might just be on your way to financing.
14. Retirement Financing- Fund your new company with your retirement account from your previous job.
15. Direct Public Offerings-Take your business and your quest for funding directly to the public, by selling shares in your company or opening up to partnership.
16. Reverse Merger- Take your private company public. The easy way to achieve this, is by purchasing a dormant public company.
17. Initial Public Offerings- this is mainly for established businesses. Ready for a whirlwind ride? Take the ultimate funding trip by going public. This guide will help you prepare.
18. Institutional Venture Capital- VC funding isn’t always easy to obtain, and you will have to give up equity, but when you’re a high-growth company with high-financing needs, it can be your best bet.
Are looking for businesses to invest in ?.Are you seeking good business ideas?,with a strong profit potential to fund ,or do your business need funding? I advice you to seek professional services, before embarking into any of the above.
Business Round Table (BRT) provides professional services for both the investor and the emerging business. We organize investors and venture capitalist meetings. where business plans, financial and profit potential of the business is carefully and professional reviewed. Giving the investors strong confident with accurate facts on where and which businesses to invest in.
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