How To Get Funding For Your Business In Nigeria (2023)
We've been talking about various Nigerian business ideas and how to start them in our business ideas category on our blog. We have, in my opinion, adequately reflected these business concepts. Nonetheless, one significant issue I have heard our readers grumble pretty much constantly is the manner by which they can get capital or subsidizing to begin these organizations.
A significant number of them have the energy to begin one business or the other however they are either penniless or can't manage the cost of the beginning capital or assets of the business. For this reason in the present article, I will make sense of various ways how we can get subsidizing for your business or new companies in Nigeria - whether these organizations are old or new.
A large number of us don't realize that there are numerous choices accessible with regards to reserves so we will list numerous ways on the most proficient method to raise capital or assets for your business in Nigeria. So only for the wellbeing of clearness let us make sense of what a business startup is first. tips to attracts more customers
What is a Startup Business?
A company or business in its infancy is known as a startup or business startup. At this stage, the pioneers behind the business or organization generally work with a dream of the business. They are not searching for business visionaries that will purchase their business from them. Instead, they are looking for investors—individuals who are prepared to provide financial support. This assistance can come in the form of loans or any other means.
How to Get Funding for Your Business in Nigeria
- Family and Friends
- Angel Investors
- Business Loans
- Crowdfunding
- Bootstrapping
- Start-up Grants
- Bank of Industry(BOI)
- Business Incubator
1. Family and Friends
If you have influential and wealthy family and friends who are supportive, this is the first and easiest way to get money for your business or startup in Nigeria. You can meet them to inform them concerning your startup and how you maintain that they should uphold you with cash and they will be willing without being constrained or pressured.
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You can gather as many members of your family and friends as you know will contribute financially, depending on how much money you need to start your business. Let's say, for instance, that you need $5,000,000 to start or expand your business. You can meet ten of your friends who, you know, will each give you $500,000 to support you.
It is essential to note that you explicitly state to these individuals when you approach them that the money is a support and that you are not borrowing it. This is to ensure that when the startup bombs you won't be committed to discount any cash given.
If you're not sure if your friends and family will help you financially, you should think about your character. People will always back you up if you have a good character and know how to handle money. One of the easiest ways for Nigerian startups to obtain funding is through Other People's Money, or OPM for short.
2. Angel Investors
In Nigeria, you can also get money for your business from angel investors. In Nigeria, angel investors are not uncommon; All you need to do is look in the right places. In case you are unfamiliar with the term, angel investors are a group of individuals who pool resources, primarily capital, to assist businesses in their pre-seed early stages.
There are also individual angel investors in Nigeria, in addition to the group of angel investors who support startups. They are well-known for many of them. A portion of these private supporters are Jason Njoku, Adejoke Olubisi, Femi Kuti, Kola Aina, from there, the sky is the limit.
3. Business Loans
Getting a business loan from a commercial bank or a microfinance bank is another way to get money for your business in Nigeria. While many business owners choose to borrow money from commercial banks, others have good reasons to choose to do so from microfinance banks.
In fact, both kinds of banks are the same, especially when it comes to loan interest rates. However, some banks offer assistance to new businesses. In Nigeria, these banks are mostly microfinance institutions. You can get startup funds at very low interest rates from these particular banks.
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However, there is one major drawback to borrowing money from Nigerian microfinance banks: you only have one year to repay your loan, regardless of whether your business is making a profit. To learn more about the business loans that are available to you, check out our article on the ten best online loans for people who don't make a salary in Nigeria.
4. Crowdfunding
If you want to know how to start a business without any money, you can use popular crowdfunding platforms to raise money for your startup in Nigeria. In the event that you are searching for ways of raising assets (capital) for your agribusiness business you can utilize crowdfunding stages like thriveagric, porkvest, Kobotalk, farmcrowdy, porkmoney, and others. you can also read on significants of business logo
These associations are free cash providers in Nigeria. These crowdfunding platforms support you with not only capital but also the resources and guidance you need to succeed because they are aware of how challenging it is to expand agricultural businesses in Nigeria.
You can use crowdfunding platforms like GoFundMe, Lending Club, Indiegogo, Patreon, Kickstarter, and CircleUp if you have another startup that is not related to agriculture. You can receive any amount of money you want from these crowdfunding platforms.
5. Bootstrapping
Bootstrapping is a well known technique by which you can get subsidizing for your startup in Nigeria. In case you are unsure of what bootstrapping is, let me explain. Bootstrapping is the process of starting a business from scratch with no outside help or money.
The majority of intellectual entrepreneurs refer to this strategy as self-funding. If you don't have any outside support and your business is still in its early stages, bootstrapping might be your best option. At the point when you self-store your business to the degree that you are presently making deals or benefits you will currently begin getting support (financial backers) from outside (different means).
6. Start-up Grants
Start-up grants are another way to get money for your business in Nigeria. This is the best option for you if you want to know how to start a business in Nigeria without any money. This is on the grounds that with startup allows the financing you get is free.
This indicates that there is no motivation to repay any funding you receive. Startup awards are difficult to find be that as it may, there are no agreements appended to them when you can get to them.
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Instances of associations that give startup awards are AYEEN - Africa's Young Business visionary Strengthening Nigeria and the Tony Elumelu Establishment Business venture Awards.
7. Bank of Industry
The Bank of Industry (BOI) is for small businesses in Nigeria that are already up and running and making money. Your company must be registered with the Corporate Affairs Commission (CAC), have a business account, and have been in operation for some time to demonstrate that it is earning profits before you can apply for funding from BOI.
8. Business Incubator
Business Incubator are one more great source and the most proficient method to bring subsidizing for business up in Nigeria. You can get funding and growth guidance from a business incubator. Top Incubator and acceleration programs are 440NG, L5LAB, Co-creation center point, and that's just the beginning. Start-up training, networking opportunities, mentorship, and other services are provided by a business incubator.
Conclusion
Starting a business in a country like Nigeria is hard, so if you're a passionate entrepreneur, you shouldn't worry about how to get money for your business again. This is why we wrote this article to help a lot of Nigerian readers. Attempt any of the above ways of getting to subsidizing for that business and begin that business now. somebody you feel could require.
