19 CREATIVE WAYS TO FINANCE YOUR BUSINESS START-UP IN NIGERIA

If for any reason you find yourself on the rutted
path to entrepreneurship make it an obligation to
keep reexamining yourself to be sure you are
combat ready.  Behold, the first hurdle; raising
adequate funds for your startup.
Finance as a subject remains most vital even to
the blue chip organizations. A lot of times it even
comes easier for already established and excelling
businesses. We keep hearing stories of how
financial houses and some private investors keep
persuading ace entrepreneurs and multinationals
with unsolicited funds. For you as a start-up
entrepreneur -you have to fight your own
battle.
Don’t fidget,...  read on..
it’s not outlandish if banks, venture capitalists or
the government are not showing you any support
everybody want to know exactly how much of your
own money you put into it. And most other times,
no matter how creative or promising your start-up
may be, some investors still want to see it work
first before becoming a part of it- probably when
you need them no more.
Nevertheless, you might be surprised about how
much you can achieve starting out on your own.
First step: look inward, list the facilities you own
already probably some can be useful for your new
venture or can be converted to cash. Eg tools,
vehicle, assets or even your apartment which can
be used as your startup office etc., even your tap
water). Shiekh Muhammed bin Rashid resolved to
the construction of Burj Al Arab (known as the
world most luxurious hotel) when the government
thought of the future of the United Arab Emirates
without crude oil which the country presently thrive
on. The natural resources they discovered they
had left were; sun, sand and sea- hence
diversification into tourism.
PERSONAL FINANCING: I don’t care if you are or
thin, you most likely have to be ready for a dieting
program. Some good part of your savings have to
be dug out to put into your start-up, if you are not
ready to sacrifice and stand for what you believe
in, then who else should?
OVER DRAFT AND PERSONAL CREDIT LINES:
Depending on type of account you run with your
bank, your account balance and activities, some
banks might give you the benefit to make
withdrawal beyond your balance for the sake of
financing your start-up. The advantage is that you
retain total ownership and control of your business.
FAMILY AND FRIENDS: In a country as ours
where family ties are highly respected, looking
around for friends and relative who believe in you
to make initial investment in your business is most
likely one of the best bet of getting financed.
Dangote and a lot of others in his category got
such hands.
CROWD FUNDING: Here you use the power of the
Internet or association to get a large amount of
people with like-minds with small amounts each to
back your efforts.
MICROLOANS: These days there are many
companies and microfinance banks run by private
corporate organisations. A lot of starting up
entrepreneurs seems not well informed yet about
opportunities such organizations offer. Some
merely demand that you have a savings account
which them and after a period of time you can
access loan in multiple of a particular percentage
of your account balance, without collaterals.
VENDOR FINANCING: If there are particular goods
or material you require for your production, some
manufacturers/ suppliers can be convinced to
defer payment until your products are sold.
PURCHASE ORDER FINANCING: The availability of
a legal purchase order for your start-up to supply
or render certain goods/service will a lot of time
make it easier for you to access funds without
collateral or much interest.
PARTNERSHIP: Working along with someone who
has an interest in the business with a certain
amount of money to finance it is also ideal. Such
person could be a friend or just someone with a
like-mind. This way percentage of each person’s
ownership in the business is always noted.
LAUNCHING/FUND RAISER; being creative
enough on the debut of your product or business
you may send out request letters for fund raiser or
host a launching event where necessary people
will be invited to support your dream.
PRESALES ORDER: this is when you persuade
your clients/ customers to pay ahead before
goods/ services are being delivered.
GOVERNMENT GRANTS: Government of various
nations having noted that entrepreneurship is
pivotal to economic growth- make provisions
through certain bodies to give grants to
entrepreneurs with ideas considered worthy.
NGO GRANTS: A lot privately owned Non-
governmental organizations exist all around the
world with a focus on aiding entrepreneurship.
Finding out nearest ones that might consider you
legible should be your first task.
HIRE PURCHASE: instead of cash finance, some
equipments or needs for your start-up can be met
through hire purchase from the sellers, in this way
they still have legal possession of such equipment
till payment is completed.
LAUNCHING A BUSINESS ON THE SIDE. Doing
side businesses such as sales of petty items etc.
With the little amount you have on you till you get
enough funds isn’t also a bad idea to raise funds.
VENTURE CAPITALIST AND PRIVATE INVESTORS:
good networking is highly necessary for your new
business to succeed. Venture capitalist are
organizations or individuals who are business
inclined and have funds always ready to give out to
new businesses on agreed terms of share owning
or loan, depending on how credible the is seen.
GET MOBILE: Endeavour to get mobile if your
business or service is such that you can start
reaching out to service clients and deliver
products if you don’t have enough stock or a
space solely for your business yet.
ONLINE SPACE: These days a lot of money making
ventures are online, some may have never really
intended to be exclusive on the web, but
considering the cost of rent of property and the
attending cost of maintenance and staffs –they
start up online and make enough profit to expand.
BREAK DOWN OPERATIONS : for instance starting
up a clothing line and you don’t have enough
capital you could start up by breaking down your
operations by starting up with offering advisory
service, fabric selling... till you eventually get into
full business
I.R.A FINANCING: If at the moment you have a
paid employment in most cases you should
reserve an Investment Retirement Account for you.
This can also be a good source to fund.

Small Business in Nigeria You Can Start With Less Than N50,000 And Still Make Good Profit

Small Business in Nigeria You Can Start
With Less Than N50,000 And Still Make
Good Profit
Starting a small business in Nigeria has never been
easy considering what you’d have to go through to
raise business capital towards setting up and
running a profitable business. Basically, it’s all
about money money money! No Bank in Nigeria is
willing to help small scale businesses, and
Government seems to have no plan whatsoever for
the citizens who needs business start up capital.
If you are contemplating any business, you are on
your own if you don’t have enough money to
finance it. The worst part of it all is that most
potential profitable small businesses in Nigeria
needs much amount of money to get it started —
most times, far much beyond what average
Nigerian small business aspirants can afford.
Have you ever had a business idea — so bright
that it was just a matter of get it started and the
money starts rolling in, only to see the idea die
because no money to kick start the business?
That’s what 70 percent of Nigeria Entrepreneurs
experience on regular basis.

Sometimes, the little money you have can’t just be
enough to start anything reasonable no matter how
hard you tried. Because of these, many people are
finding it difficult to figure out any small business in
Nigeria they can start with small amount of money
and still make reasonable profit.I’ve taken the
burdens off you by taking time to come up with
small businesses that promises good ROI.
Below are some of the best small businesses in
Nigeria that any aspiring Entrepreneur can start
with N50,000 or less and make substantial profit in
it.
1. Plantain Chips Making – Move around the street
and you will see different brands of Plantain chips
on sale and it sells very very fast. People just like
chewing stuffs and there is no end to it, so if you
can engage in the business of producing and
supplying it, you will be making good money on
daily basis.
All what you needed are: Big Frying Pan (N3,000)
Small Sealing Machine (N15,000) The Nylons and
Labels (N2,000) Other Utensils (N5,000) The rest
N30,000 goes into buying of Plantains and logistics.
Supply to the shops and to hawkers and you will be
making your money.
2. Tokunbo Shoes – I like quality leather materials
and that’s why until recently, all my shoes and bags
are bought from the used shoes and bag sellers. I
used to get some top class shoes for N3,000 by the
roadside back in those days when I can’t really
afford high quality designer shoes that cost N50,000
or more.
Many people out there are just like me — Instead of
patronizing those fake China shoes and bags, they
prefer to buy high quality fairly used ones which last
longer and confer you with more respect.
Get a nice place where you will be displaying your
goods like in front on shopping malls. Go to Fairly
used market (Katangowa or Aswani in Lagos) you
may go to Seme Border or Kotonou. Select quality
fairly used shoes, look for designs that are close to
the latest fashion. N40,000 can get you up to 40
pairs of shoes. Sometimes you make profit of up to
N3,000 from a single sell.
3. Used Books – You used to see them by the
roadsides and you’re wondering if the seller are
making money from it? Try it and see! You will be
surprised at the profit margin, and you will be
amazed at the rate at which Nigerians buy different
books.
Follow the same process as it is with the used
shoes but you buy at different markets. Used books
are sold in importers warehouses, locate one and
go there to select nice used books, Children books,
Professional books, Hand craft books, etc etc.
These types of books sells very fast with high profit
margin. N50,000 is more than enough for a starter.
4. Office Supply – People who works in offices finds
it difficult to go out to the market to buy certain
things like Wrist Watches, Shirts, Ties, and
Perfumes. Help them do the shopping and charge
moderately, don’t be greedy like other suppliers
who buys fake things for N1000 and wants to sell
for N10,000 in the name of office.
If you are honest with your business and charge
reasonably, you may even get huge supply contract
form some of the people you will meet in those
offices. N50,000 will do good in these type of small
business in Nigeria and you will smile at the brisk
business you will be making.
5. Road Side Foods Vending – If you are the hard
working type, this small business in Nigeria may be
for you. I’ve seen people buy cars and build house
from this business. It’s one of the few businesses
that guarantees steady flow of profit no matter the
weather, no matter the economic situation.
Specialize in cooking Jollof Rice and Beans, Moi
moi, Fried Plantain, Custards, and Fried Eggs. You
will be friend of the people and the people will be
your friend! Look for a hot spot, like the bus stop,
near Motor and Okada parks or busy shopping
malls.
Thirty Thousand Naira (N30,000) will get you all the
utensils and small tables and chairs. While N20,000
goes for food items and settlements.
Please if know any other profitable small
businesses in Nigeria that one can start with
N50,000 or less — write in the comment box below
and let’s get the business started