Top 5 Ways to Raise Money For Small Business in Nigeria

The biggest challenge any would be Entrepreneur in Nigeria or elsewhere would face is how to raise money for business. It doesn't matter how profitable you think the proposed business is, doesn't matter how little the money you needed to start is - once you're not able to raise money to start the business, the business can never be started.

To raise money for business is the biggest achievement any aspiring Entrepreneur could make. Once you have the start up capital, every other thing falls into place easily and that is only when your business idea begin to make sense.

I've seen great business ideas die from conception due to inability of the Entrepreneur to raise money for the business. How do we then proceed to solve this seemingly biggest challenge facing business start ups in Nigeria and Africa? Here are the top 5 ways to raise money for business -- that any smart Entrepreneur should explore fast.

1. Personal Savings

 

The best person to give you money is yourself... If you plan to start a business soon, start saving for it now. Open a savings account in any bank and start saving bit by bit, spread your savings over the period of time you intend to kick start your business and make it a target to save certain amount periodically.

To be able to achieve this, you'll need to be resolute and disciplined. Cash demanding Problems may come along the way, look for other means to solve them -- ask yourself 'what if there is no savings what would you have done? Go with whatever answer you get and use it to solve the problems instead of using the saved  fund. With this, you will be able to raise money for business through personal savings.

2. Family and Friends

The oldest and sometimes, the easiest and most efficient way to raise money for business or any project by Nigerians over the years has been through family and friends. To give out money requires plenty of trust and no one knows and trusts you better than your friends and family members.

Make a list of your rich friends and family members and divide the total needed amount by the number of people in your list to make it smaller and easier for them. The biggest mistake many Entrepreneurs make is go approach only one person with the entire amount of money needed for their business, that can be overwhelming.

If you need N500,000, make a list of about 20 family and friends and divide the N500,000 by 20, that will give you N20,000. Then, approach each of the 20 persons in your list -- demanding for only N20,000. In that way, it would be easier for them to consider your request.

3. Co-Operative

The type we normally refers to as "Daily Contribution" It can be daily, weekly or monthly contribution -- look for group of people with common  interest and start the contribution with them. This is similar to personal savings, the only thing different is that others are involved.

Each time you contribute, someone among you take it -- do it until it reaches your turn. When you get yours, quickly put it into the business before other expenses carries it off.

Everyone in your co-operative must be people you trust to an extent, if not someone might attempt to disappear after collecting his without fulfilling same obligation to others. It is a bit risky but sure way to raise money for business in Nigeria, especially if you are fortunate to be the number one or two in the collecting order.

4. Micro Finance Banks

Open Account with any micro finance bank or co-operative bank of your choice and start saving certain amount regularly. Once you've saved up to six months, you'll quality for loan of twice your saved amount. One thing I don't like about micro finance is the fact that you'd have to wait for six months to quality for loan and having to pay interest in the loan even though your money have stayed with them for six months with no interest accruing to you.

However, that is the price you'll have to pay to raise money for your business and many people are finding success using it. So why not give it a trial. Look for any micro finance of your choice and start saving towards raising money for your business. Most of the major banks have their own version of micro finance -- you may go with this ones for they're more reliable.

5. Angel Investors

If you are not a control freak, if you are ready to give up some percentage of your company's equity then go for Angel Investors. Angel Investors are business start up incubators and they are not in any particular place -- your rich uncle could as well be your Angel Investor. Prepare a bankable business proposal -- clearly state your business plan and objectives. If the Angel finds your proposal appealing, they will invest in it. But, prepare to give up good part of your company up to 40% in exchange for the needed capital.

If you have any question, drop it below in the comment box.

Read heartbreaking last letter Iranian woman wrote before she was hanged

Read heartbreaking last letter Iranian woman wrote before she was hanged

27 year old Reyhaney Jabbari was executed on Saturday October 25th by hanging in Iran seven years after she killed a man that she claimed had attempted to rape her. Before she was killed, Reyhaney wrote a very emotional letter to her mother, asking that her organs be donated to those who need them. See the full text of the letter after the cut...

The full text of the letter was translated by the National Council of Resistance of Iran:

Dear Sholeh, today I learned that it is now my turn to face Qisas (the Iranian regime's law of retribution). I am hurt as to why you did not let me know yourself that I have reached the last page of the book of my life. Don’t you think that I should know? You know how ashamed I am that you are sad. Why did you not take the chance for me to kiss your hand and that of dad?

The world allowed me to live for 19 years. That ominous night it was I that should have been killed. My body would have been thrown in some corner of the city, and after a few days, the police would have taken you to the coroner’s office to identify my body and there you would also learn that I had been raped as well. The murderer would have never been found since we don’t have their wealth and their power. Then you would have continued your life suffering and ashamed, and a few years later you would have died of this suffering and that would have been that.

However, with that cursed blow the story changed. My body was not thrown aside, but into the grave of Evin Prison and its solitary wards, and now the grave-like prison of Shahr-e Ray. But give in to the fate and don’t complain. You know better that death is not the end of life.

You taught me that one comes to this world to gain an experience and learn a lesson and with each birth a responsibility is put on one’s shoulder. I learned that sometimes one has to fight. I do remember when you told me that the carriage man protested the man who was flogging me, but the flogger hit the lash on his head and face that ultimately led to his death. You told me that for creating a value one should persevere even if one dies.

You taught us that as we go to school one should be a lady in face of the quarrels and complaints. Do you remember how much you underlined the way we behave? Your experience was incorrect. When this incident happened, my teachings did not help me. Being presented in court made me appear as a cold-blooded murderer and a ruthless criminal. I shed no tears. I did not beg. I did not cry my head off since I trusted the law.

But I was charged with being indifferent in face of a crime. You see, I didn’t even kill the mosquitoes and I threw away the cockroaches by taking them by their antennas. Now I have become a premeditated murderer. My treatment of the animals was interpreted as being inclined to be a boy and the judge didn’t even trouble himself to look at the fact that at the time of the incident I had long and polished nails.

How optimistic was he who expected justice from the judges! He never questioned the fact that my hands are not coarse like those of a sportswoman, especially a boxer. And this country that you planted its love in me never wanted me and no one supported me when under the blows of the interrogator I was crying out and I was hearing the most vulgar terms. When I shed the last sign of beauty from myself by shaving my hair I was rewarded: 11 days in solitary.

Dear Sholeh, don’t cry for what you are hearing. On the first day that in the police office an old unmarried agent hurt me for my nails I understood that beauty is not looked for in this era. The beauty of looks, beauty of thoughts and wishes, a beautiful handwriting, beauty of the eyes and vision, and even beauty of a nice voice.

My dear mother, my ideology has changed and you are not responsible for it. My words are unending and I gave it all to someone so that when I am executed without your presence and knowledge, it would be given to you. I left you much handwritten material as my heritage.

However, before my death I want something from you, that you have to provide for me with all your might and in any way that you can. In fact this is the only thing I want from this world, this country and you. I know you need time for this. Therefore, I am telling you part of my will sooner. Please don’t cry and listen. I want you to go to the court and tell them my request. I cannot write such a letter from inside the prison that would be approved by the head of prison; so once again you have to suffer because of me. It is the only thing that if even you beg for it I would not become upset although I have told you many times not to beg to save me from being executed.

My kind mother, dear Sholeh, the one more dear to me than my life, I don’t want to rot under the soil. I don’t want my eye or my young heart to turn into dust. Beg so that it is arranged that as soon as I am hanged my heart, kidney, eye, bones and anything that can be transplanted be taken away from my body and given to someone who needs them as a gift. I don’t want the recipient know my name, buy me a bouquet, or even pray for me. I am telling you from the bottom of my heart that I don’t want to have a grave for you to come and mourn there and suffer. I don’t want you to wear black clothing for me. Do your best to forget my difficult days. Give me to the wind to take away.

The world did not love us. It did not want my fate. And now I am giving in to it and embrace the death. Because in the court of God I will charge the inspectors, I will charge inspector Shamlou, I will charge judge, and the judges of country’s Supreme Court that beat me up when I was awake and did not refrain from harassing me. In the court of the creator I will charge Dr. Farvandi, I will charge Qassem Shabani and all those that out of ignorance or with their lies wronged me and trampled on my rights and didn’t pay heed to the fact that sometimes what appears as reality is different from it.

Dear soft-hearted Sholeh, in the other world it is you and me who are the accusers and others who are the accused. Let’s see what God wants. I wanted to embrace you until I die. I love you.

9ice

It's getting serious! 9ice releases his official campaign posters

The singer is taking a break from music to concentrate on politics. He's contesting for a seat at the House of Representatives in next year's general elections.