Raising money to start up a small business in Nigeria is one challenge that every business person is facing, and in this article, I am going to reveal to you how to raise money to start up a small business in Nigeria.
Before you start a small business in Nigeria.
Before you think of starting a small business in Nigeria, you must, first of all, have a business idea.
A business idea entails the kind of business you are willing to invest in. You must ensure that it is a business that is going to generate income at the end of the day.
There are various kinds of small businesses that will not require so much money to invest. You have to study them closely and settle for any one of you choose.
After deciding on the kind of business you are going to invest in, the next step is to figure out how much you need to invest in that business.
How to raise money to start up a small business in Nigeria.
Below are the various ways you can raise money to start a small business in Nigeria.
- Your personal savings.
- Seek help from family members and friends.
- Borrow from rich individuals.
- Sell or lease your belongings or assets.
- Partner with someone.
- Joining a co-operative society.
Now let’s explain these points one after the other.
1. Your personal savings.
Raising money to start up a small business in 2022 through your personal savings will require that you already have a source of income.
Let’s assume you are already working for a government establishment or private sector and are earning a monthly salary; now since 2022 contains a whole 12 months, you must now use your monthly expenses to determine how much you will be able to save every month towards starting your small business.
2. Seek help from family members and friends.
If you have a great idea to start a small business in 2022 but are not financially capable or have no source of income to save for your business start-up, you should look into your family members and friends and see the ones you can seek for financial add to start up your business.
The best way to approach these kinds is to make sure you have a proposal, especially written, that you’re going to present to them.
The key point here is to ensure they know you understand what you want to do because nobody wants to throw away his money in the name of helping a brother or friend to start up a business.
So once you’re able to show your family member or friend the ways and means you are going to go about the business, and the profit or income the business will generate in a short period of time, there is no way they are going to ignore assisting you.
Another trick is to appeal to the person’s interest, that is show him how he is going to gain in the business you are going to start up.
Even if you will not be telling them to borrow but rather to help, still find a way of showing them how the business will also profit them in the end.
3. Borrow from rich individuals.
These rich individuals might also include your family members and friends.
And the same method you used in seeking help from your family members and friends is what you are going to adopt here, except in this case you are going to borrow, and not seek help.
So have your business proposal written, and try to show the borrower how you are going to refund his money and the time you will do so.
4. Sell or lease your belongings or assets.
Another way to raise money to start a small business in 2022 is to either sell or lease your belongings or assets.
It might be your home electronics, clothes, shoes, or a portion of land you have somewhere.
The main thing you should put as a priority while doing so is to ensure you will raise enough money to either take back or replace what you leased or sold within a short period of time.
Why to keep a belonging or asset that is not generating any income; instead use it to raise money and you will buy more than that when your business becomes successful.
5. Partner with someone.
Let’s begin this point by saying that if you have a great idea to start up a small business but lack the capital to do so, search for someone who is willing and has the money to start a business but lacks a business idea; to partner is the best option.
There might even be someone who has the same business idea but not enough money to start up, and you both can join the money and start the business.
A business partnership is one great way that so many people have succeeded in their business careers.
6. Joining a co-operative society.
Co-operative societies are the assembling of business-minded individuals who contribute towards empowering their members and associates.
So if you can find one to join, it might be the best avenue for you to raise money to start your business in 2022.
Before you think of collecting loans to start up your small business, first of all, read this article Why you should not collect loans to start a small business.
Whatever option you will choose to raise money to start up your small business in 2022, make sure you have a great business idea that will generate income because you are able to, you may grow from a small business to a very large corporate body or entity.