Entrepreneurship is the next big thing on the Nigerian, and World, Labor Market scene. Everyone, and their third cousins, are getting into the world of small businesses in everything from event planning to consultancy. However, the success of any startup is mostly dependent on its foundation -funding.
Startups with strong financial backing, in the development process, are more likely to experience success because of the miles’ worth of exposure they can afford to acquire, as well as the quality of their products and services.
Money makes the world go round, doesn’t it? Well, you don’t have to fret about it.
Got a great business idea? Check out these five ways to get funding for your startup.
1. Seed Capital
This is the most common form of funding for startups. Investors are willing to plant the seed (capital) for small businesses to grow. It can be a bit stressful because you have to submit several proposals and presentations but once you get the confirmation, your financial woes are over. There are some major seed funding companies in Africa which you can check out to get funds for your business; Venture Platform, Ingressive capitals, Outlierz ventures, EWB ventures, LeadPath Nigeria, Microtraction, Novastar ventures.
2. Business Loans
Similar to seed funding, you can get a business loan from an organization or bank. Unlike seed funding, this is not a direct investment but a loan for a specific amount to be paid back at an agreed time, rate and interest percentage. Also, unlike seed funding, you may not have to do so many presentations, but you will have to provide a number of documents for validation.
Why start alone, when you can get help?
You can engage someone on your business idea and plan. If interested, they may choose to be a silent investor or ghost partner to put capital towards the business, participate as a member of your board and split profits. By partnering, you take off some of the responsibilities of being a solo startup.
4. Close Relations
Family and friends may be your least preferred choice, but they are still an option. Ask for help to support your savings and be sure to emphasize an agreed date and rate to pay back to them -it takes some of the casualness of the loan.
Last resort, but feasible. You can share ‘some’ of your idea, not enough to encourage plan-copy, on the internet and ask for investors, partners or simply contributions.
The most important thing to remember is that, you don’t have to do it alone. If you really want the business to happen, you will find a way to make it work out!