How to Raise Money For Your Business
I regularly hear people especially youths who desire to start up their own business complain that it is difficult to raise money in Nigeria. I have also had that mentality in the past but have come to understand that money is available for anyone who is willing to apply the right principles. Most business startups and entrepreneurs in Nigeria find the task of sourcing funds for their businesses very difficult and tedious. As an entrepreneur and having carried out various research, I have found out that there is a lot of money available for businesses out there but the real challenge lies in knowing how to access it. Let us examine some key points you must have in place if you are serious about raising money for your business.
These qualities helped a budding entrepreneur raise over N5m from a Nigerian bank without placing any major collateral for the loan.
(1) An Idea
Ideas rule the world and should never be underestimated. An idea, when nurtured properly generates money and creates opportunities. Money is an idea, a wise man once said. Your idea must be able to create value for people. A man without an idea should not expect to get funding because investors seek people who can add value.
Vision is essential in life. Without it, living may become empty and purposeless. A vision-less man is a dangerous man. The good book also says: where there is no vision, the people perish. A man going somewhere must be a man of vision. You must have a vision for your business idea. It is your vision that would determine if your business will see the light of day. A man of vision can be trusted with resources.
(3) A Plan
Everyone who desires to succeed in business and life must be a planner. It is said that one who fails to plan, plans to fail. If you desire to get funding for your business, you must develop a plan which shows how you intend to achieve your short, medium and long-term goals. No investor would put money into a business with no plan. A business plan will show if your idea has a future or not.
It may surprise you to know that most financiers, banks and other financial institutions do not lend money to people primarily because they lack integrity.
Experience has shown that most people who take loans sometimes think it is free money and never intend to pay back such loans. Integrity is a vital quality you must possess if you want to succeed in raising funds for your business ideas.