Sourcing for funds is one of the main reasons a lot of to be entrepreneurs quit even before starting. If you think about where to get funds before launching your business, you may be putting the cart before the horse. The key to building your dream business is all about getting started. Let’s talk about some of the sources where you can get finance for your business.
- Personal Savings
You probably put away some money at one point in time for something else. Well, you can convert that something else into your Business 😎 . Your Personal Savings serves as a good source of funding to Kickstart your Small Business.
- Family and Friends
This is the starting point of most businesses. You may seek assistance from your family and friends. Let them see your passion and connect to helping you realize your dreams.
- Bank Loans
Banks give out loans to Business owners looking to scale their businesses. Many entrepreneurs run away from banks due to their high interest rate. The competition among banks is very intense these days and a lot of them are looking to help SMEs, a lot of banks have programs that are specially designed for SMEs. Do not cancel out banks totally, there are numerous opportunities available via them.
- Government Grants and Loans
The Government helps people with great Business Ideas. Such is the YouWin programme currently going on. There are also government financial institutions that help business owners source for finance at a more favorable interest rate such as the Bank of Industry. Another Example is the Ignite Ideas Program by The Lagos State Government.
- Venture Capitalists and Angel Investors
Venture Capitalists invest in businesses they are interested in. They invest lump sums of money, you would have to pitch to them about your business ideas. Angel Investors are also affluent individuals that invest in business. As an entrepreneur, you should be watching shows like Dragon’s Den and Shark Tank to help you learn from people’s experiences. Get prepared to trade off some off your stake in the business
Incubators are firms that help people with ideas realize their dreams, incubators can help connect you to potential investors, bootstrapping your business, providing an enabling work environment. There are a few incubators in Nigeria you can present your ideas to.
How did you get money to start your Business? Wanna Share?
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