Financing a Business is not a walk in the park, and a business can’t survive without finance. Financing a business means providing funds for starting and maintaining it, regardless of whether it’s a small or large business.
Ways to finance your business in Nigeria?
1: Bank Loans: Loaning from banks has been in existence for decades now, and it’s the first place businesses go to once they need funding. This option isn’t the best for small businesses, because it requires having collateral from you to secure the loan.
2: Government Grants: Lately, the federal government has been considerate of startups and small businesses. They are providing funds for businesses that can impact the economy, you don’t need to repay, but you’ll be monitored. There are several government grants in Nigeria, which include; Bank of Industry Grants of Agriculture etc.
3: Family and Friends: If you have a good business idea, you can write a well-detailed business plan and inform them. Explain to them how you intend to pay them back, and always fill them in on any challenges that might come up. Also, if things hit the roof, communicate immediately. Lastly, don’t mismanage the finance because they are your friends and family, be trustworthy.
4: Strategic Partnership: Some people have funds to invest in a business, they don’t involve themselves in the day-to-day activities of the company. While some do, all you need is to sign a contract and have an agreement with this partner or co-founder. Choose a trustworthy partner.
5: Crowdfunding: This is simply raising funds for individuals from a lot of people. Crowdfunding isn’t done for business alone, health issues, tuition fees etc. If you’re using this option, you’re not repaying them because they are not investors. There are many crowdfunding sites you can do this or through social media.
These are a few out of the options available to finance a business. You can choose any that is suitable for you, also note that before looking for ways to finance a business you should be sure of the nature of your business, the risks involved and the challenges you might face.