When starting a business, many entrepreneurs have great ideas and plans in place, but they often struggle with obtaining financial assistance for their business, especially in Nigeria. This can be a major obstacle in achieving success and reaching the next level of growth. One of the biggest challenges for entrepreneurs and small business owners is finding the funds to launch and grow their businesses. Explore various options for business financial assistance in this article.
How To Get Financial Assistance For Your Business
Bootstrapping
Self-funding your business can be challenging, but many now-successful startups have gone down this path, and you can as well.
In the idea/experimental stage, you can use your own financial resources like money from a savings account or the careful use of personal credit cards. As the business grows, it brings in more money which enables further growth.
Sometimes, you don’t need outside cash just yet, and nor do you need to sell part of your company. Rather, you must “pull yourself up by your bootstraps” by using your own capital to launch.
Friends and Family
This is a good and safe option to get financial assistance for your business. If you don’t have your own savings or your growing business needs more than what you have, consider inviting family and friends to invest in the company with the understanding that their money may not be returned.
This is because, unfortunately, businesses fail and the loss of capital can then cause hurt feelings, ruin friendships and make for unpleasant family gatherings.
Be sure that your investors know the true risks of what they are getting into. Both parties should think of this investment as a grant with no strings attached. If the enterprise succeeds, it would be nice to reward them for taking a chance on your business.
Crowd/Cloud Funding
Crowdfunding – allowed under the JOBS Act allows for a wider pool of small investors with fewer restrictions and is ideal in the early stages of a business, especially if you don’t qualify for a bank loan, or aren’t ready for angel or venture capital funding.
There are many sites that have started crowdfunding already. These sites allow you to pitch your ideas to investors via the internet and if you’re successful, you get multiple investors to contribute funds to your idea.
To get started on this, it is important to do your research on sites that allow this and also understand the rules and restrictions on how cloud funders can operate.
Angel Investors
“Consider approaching angel investors for funding as your business grows and revenue increases. Attract investors by showing a clear plan, a strong track record, and an agile team.
Affluent individuals invest in start-ups for equity or convertible debt. They can be found in most communities – and on the Internet, with a description of their purpose and objectives. After doing their due diligence, these groups will determine if your business meets their requirements and if so, will schedule a meeting to gather more data.
Search online for local angels or talk to people who may know people who are interested in funding your area.
Loans
“Growing business may require bank loans for operating and long-term growth needs. This is another viable option to get financial assistance for your growing business.
Securing a bank loan in this region is difficult, often requiring years of financial data. They will also want collateral amongst other ‘difficult-to-get documents.
At Rosabon Financial Services, we help small businesses and entrepreneurs to cross this hurdle by giving them access to flexible, affordable, and collateral-free loans to boost their businesses whenever they need them. Find out more about our Loan Options Here.
Access a consumer business support loan today.
Maximize your chances of getting capital for your business with these 5 funding sources, no matter what stage your business is in.
Also Read: 8 Finance Tips For Small Business Owners