In Nigeria, one of the biggest challenges that entrepreneurs face is on how to raise business capital to grow their businesses. Business capital have to deal with various costs an ongoing businesses needs, both finance growth and working capital. But as hard as it may be, I have listed 5 ways to raise business capital in Nigeria in 2021.
I will love to see your business grow and make huge impacts by creating employment.
5 ways to raise business capital in Nigeria in 2021
2. Friends and Family
4. Crowd funding
5. Business Loans
You can raise business capital for your business in Nigeria in 2021 by putting together all your personal funds.
In most cases, it is better to use the money you have instead of borrowing. It may interest you to know that many successful entrepreneurs today raised their businesses through this method. Bootstrapping can be very beneficial to an entrepreneur because it means you won’t have outside loans that can weigh you down. Also, starting a business with your own money will make investors and lenders more willing to partner with you on the long run.
Friends and Family
You can raise business capital by going to the people closest to you before considering any external funding. Your friends and family members are much more easier for you to persuade than outside lenders because they are less likely to demand high interest rates.
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Also, raising business capital in Nigeria in 2021 through borrowing from friends and family also comes with risks. For example, if the business fails or you take more longer time to repay the loan, your relationships with can suffer. So before you go into asking friends and family for money, make sure you have a business plan ready and also, ensure that you have all terms of the loan written out.
Investors are groups or individuals who invest their own money into other people’s businesses in return for a profit. They usually invest in companies at earlier stages of growth and are always on the lookout for the next business to invest in. It may interest you to know that some of the biggest tech companies like Google and Yahoo, were funded by investors. Some investors will not only offer financing to get your business off the ground, but may also choose to guide you on setting the business up.
Many entreprises have been using the internet to market and sell things for some time now thereby making the web a new source of financing as well. You can get funding from several business websites where investors can support your business no matter where they are in the world.
All you to do is to set up a campaign and name a target amount of money you want to raise, as well as create perks for donors who pledge a certain amount of money, such as early access to products and discounts.
Popular websites you can use to raise business capital includes
You can raise business capital by requesting for loans from banks or other financial institutions.
Some Financial institutions may require you to show that you’ve started making money and that a loan would help you earn even more. While some may need you to present a well detailed business plan and how you plan to repay the loans and interests.
In conclusion, entrepreneurs in Nigeria must weigh the benefits and disadvantages of the available options on how to raise business capital in Nigeria in 2021 and determine which one provides the greatest flexibility at the least cost. And with diligence and right resourcefulness, you can easily raise the business capital you need to move your business to the next level.