Ways to raise capital for Business in Nigeria
There are several ways to raise capital for business in Nigeria, it is rather not difficult to finance the business to make money. Many Nigerians do not know how to raise money for their business this tends to hamper business and entrepreneurship in Nigeria.
Many businesses in Nigeria remain stagnant, forced to remain on small scale due to insufficient funding to expand the business. In this article, you will learn how to raise funds for your business right away in Nigeria and any other place in the world.
Start with your personal savings
Most Nigerians have zero Naira saved for an emergency, cultivating the habit of saving is your first step towards ways to raise capital for business in Nigeria. In other to raise capital for your business follow the steps below…
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Start by learning to save N500 per week, that is a number regardless of disaster level, you can achieve N500 per week, put the money in a separate account and review the money saved every 3months.
The reasons most Nigerians failed at savings is starting big…. By starting big, you are starting up to fail, start-up small. Starting small will automatically set you up to want to do more, to achieve more.
When you start small, you are setting yourself up for success, because success begets success, no one will give you money to save. By saving small, N500 per week, you are cultivating the mind of becoming an entrepreneur.
While you are trying to save, keep the following in mind and do them diligently;
1. Make and keep a personal budget
You probably have a good grip on the economic state of Nigeria, recession, Kaduna state Government retrenchment of primary school teachers, low cash flow in the country, ineffective salary plan for governmental and private sectors.
With all these knowledge intact, raising capital for business in Nigeria starts with personal budget on outflow very low than the inflow of any earnings from your current source of income. This can be particularly harder for you if your source of income is small.
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Even with all these uncertainties, make and keep a personal budget for raising money for your business. The first way to raise capital for your business is by making and keeping a personal budget for your business ideas.
2. It’s not personal; it’s for your business
When starting a business, it is crucial that you keep your financial houses separated. Your personal spending and your business saving plan should all be on separate accounts in the bank.
Your business savings are for business, they have no relationship, whatsoever to your spending, you need to minimize your spending to its bare-minimum, irregular spending that may necessitate irregular expenditure should be curtailed for diligent savings to raise capital for business in Nigeria.
Start a side hustle in Nigeria
For any functional and progressive Nigerian that loves to make money, start a business or become relevant to the country knows that it is better to move from brick and mortar business to start an online business.
It does not cost much to start an online business if you want to in Nigeria. I leave the homework for you if you really want to make income online
Raise capital for business by Sales of assets
Assets in terms of land, houses, cars, motorcycle, bicycle and many more are assets most parents entrust to their loving children in Nigeria. There is no point in keeping items you are not in urgent need off.
Why not sell some of these items to raise capital for your business, when profits are made from the business and the need for such items arises, you can as well buy them back.
Items that can be sold to raise capital for business in Nigeria
Raising capital for any business in Nigeria is very crucial, therefore, you can as well sell items such as
Electronics such a television, radio etc. to raise the capital for business.
Items that cannot be sold to raise capital for business in Nigeria
Most Nigerian parents have more than two children and came from a polygamous family. Selling items such as houses, family land to raise money for business is not advisable and should not be encouraged in any way.
To avoid taking some of your savings to settle family disputes over family land or houses, stay off family affairs.
Stick to items that are in your possession, those that will not cause family disputes to raise capital for business.
Raise capital to a business from side hustle
Nigeria as Africa most populous state is blessed with many opportunities for side hustle, you can tap in one or more side hustles to raise capital for your business. When we talk about side hustle, we are simply referring to legitimate things you can do alongside your day job to make money.
No matter where you are from, your employment status in Nigeria, as a young Nigeria, side-hustle should be your number source of income, and a means to raise capital for your business.
Even if you do not have a modem, a computer or advanced skills to do any online business as a side hustle, you can…
Tutor as side hustle
Tutoring involves the coaching of young secondary or primary schools students in any area of your expertise to make money. I take tutoring as a hobby right now teaching Physics, mathematics and computer science.
I make around N15k to N20k with tutoring every month in my area. This is a good side-hustle for me to raise capital for my business.
It is your turn to think of ways to raise capital for business in any part of the world you are from… despite all odds in Nigeria, we are still making few dollars in our pockets.
It is your time now!