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Friday, 11 November 2016

How to raise capital for your small business

Many Small and Medium Enterprises (SMEs) in Nigeria panic on how they could raise capital for their business and in this post, I will show you how to raise capital for your small business.
It is obvious that even as an established business, you will still realize that capital is always an issue.
Your business needs a start-up capital that involves the pre-open expenses, initial operating expenses and opening stock.

Here are some guides that would show you how to raise capital for your small business.

How To raise Capital For Your Small Business In Nigeria

1.Have The Right Mindset

How does having the right mindset relate to how someone would raise money for his small business in Nigeria? It relates in everything, many leading entrepreneurs be it Small and Medium Enterprises (SMEs) portray a mindset of success in whatever business they indulged in,, you would definitely see it in their success story.

It also applies here on how you could raise capital for your business, because whether you like it or not, no one can easily give you cash to startup a business in Nigeria, that’s why there are very few successful entrepreneurs. These entrepreneurs had a mindset to succeed, so you must have that first.

2.Apply For Loans

You just want to start a small business in Nigeria ? Then you have to apply for loan, applying for loan through a commercial bank in Nigeria requires you to have a well presented business plan that would attract the lender of the loan? In most cases some of the lenders turn down the offers of small businesses, but you just have to keep trying out other alternatives to fund your business.
You can also apply for government loans and grants.

3.Get Money From Associations

Associations in this context could be any organization you relate to, it could even be your church, as long as you would refund the money you collected from them, since your business is just a startup, they may encourage you by giving you something to jump start your business.

4.Ask Friends/Families To Lend You Money

It’s actually a small business you want to start, so you can inform your friends and families about your plan and if you are lucky, they may help you, but most of the times they may laugh at you, and some be like  “where does this one think he is going”, then they would quote you “please borrow me money to start my small business, my foot”, but whatever result you get, you have to take it in good faith.

5.Fund Yourself:

At least even if nobody wants to help you, you should be able to help yourself, it’s your business, start with whatever you have.Successful entrepreneurs tried to fund their own business at one time or the other when getting external sources of income failed and it paid off.

 You don’t have to give up simply because you went to your local commercial bank to ask for loan and turned you off, then you let your business dreams die, NO it does not have to be so, and you might even go to your friends and families and even your “RICH” uncle or closest friends and they may not assist you or they may even be jealous or just having the mindset that you can never succeed, do not give up.

 Gather the little money you have that would be able to make your business take-off and start from there, with time you will find external sources of income.
 So one of the ways you can realistically raise capital for your small business in Nigeria, is by funding the small business yourself.

6.Work For Your Capital

Let’s say you want to start your small business and you have tried to achieve all that is listed above, you can actually do jobs that would be able to help you fund you business for the mean time, that’s what I mean by working for your capital.
 Even if you have a 9 to 5 job, you just have to retain it and operate on that your small business from time to time and when you see that your small business is gaining grounds, you can quit and enter into the business full time.

This is smart and you would actually succeed in your business, because there is a sure source of income. Many business men and women, so even if you are working in an organization and you have a business plan, you can work your capital and make sure that your business has all it takes to stand on its own, not for you to quit and then when you face your business squarely you begging to see difficulties in getting funds and then your business crashes. That would be a bad scenario, so you just have to be patient until you see the limelight of your business.

 With these tips , you should be able on how to raise capital for your small business and grow it to become successful.

About Author:

Kingsley Umeh is a business avid, online entrepreneur that loves sharing new business ideas for new and existing entrepreneurs on how to start, run and manage their business with less risk.

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    1. Thanks for the comment and hope to see you again.

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